21/05/2026
Important CIS updates from April 2026 ⚠️
If you work in construction or use subcontractors, there are some key changes to the Construction Industry Scheme (CIS) you need to be aware of.
From April 2026, contractors must either:
• Submit a monthly CIS return (including nil returns where no subcontractors are used), or
• Notify HMRC in advance if no subcontractor payments will be made that month
📌 The “nil return” requirement has been reinstated and with it, a full late filing penalty regime.
That means penalties for late CIS returns can now include:
• £100 fixed penalty for a late submission
• £200 further penalty after 2 months
• Tax-geared penalties from 6 and 12 months (minimum £300 or 5% of liability at 6 months)
HMRC have also strengthened enforcement powers around fraud risk. In certain cases, Gross Payment Status (GPS) can now be removed immediately, along with penalties of up to 30% and extended reapplication periods of up to five years.
These are significant changes for contractors and subcontractors alike.
📌 If you’re a tradesperson or construction business and unsure how these updates affect you, CFW can help you stay compliant and avoid unnecessary penalties. Call us on 01536 713555