Legislative changes to tackle CIS abuse are planned for April 2021. These changes will clarify the definition of deemed contractors, that materials can only be claimed by the sub-contractor incurring the cost and, that the scope of the false registration penalty is being extended.
HMRC officers will also have the power to amend the CIS deduction amounts claimed by sub-contractors on their Real Time Information (RTI) Employer Payment Summary (EPS) returns if they deem they have been submitted incorrectly.
