Construction Industry Scheme Administration Improvements

UK HMRC Publications & Guidance

Published April 6th, 2026

Detected March 13th, 2026

Summary

HM Revenue & Customs is simplifying the Construction Industry Scheme (CIS) administration, effective April 6, 2026. Key changes include exempting payments to local authorities and requiring nil returns when no subcontractors are paid.

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What changed

HM Revenue & Customs (HMRC) has issued a policy paper detailing upcoming changes to the Construction Industry Scheme (CIS) administration, effective April 6, 2026. The measures aim to simplify the scheme by exempting payments made to local authorities or public bodies from CIS requirements. Additionally, construction contractors will be required to file a nil return for months in which they have not paid any subcontractors, unless they have proactively notified HMRC of their intention not to make such payments.

These changes will impact construction contractors and subcontractors operating under the CIS framework. Contractors must ensure they correctly identify payments exempt from CIS and implement procedures for filing nil returns when applicable. Failure to comply with the nil return requirement could lead to administrative penalties. The effective date of April 6, 2026, provides a clear deadline for implementation.

What to do next

Review and update procedures for CIS payments to local authorities and public bodies.
Implement processes for filing nil returns when no subcontractors are paid in a given month, unless prior notification is given to HMRC.
Ensure compliance with the updated CIS administration rules effective April 6, 2026.

Source document (simplified)

Policy paper

Simplifying and improving Construction Industry Scheme administration

This tax information and impact note is about simplifying and improving the administration of the Construction Industry Scheme (CIS).

From: HM Revenue & Customs Published 13 March 2026 Get emails about this page

Documents

Simplification and administrative improvements to the Construction Industry Scheme

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Details

The purpose of these measures is to simplify and improve the administration of the Construction Industry Scheme (CIS) by:

exempting payments made to local authorities or public bodies from the scope of CIS
requiring construction contractors to file a nil return when they have not paid any subcontractors in a month, unless they’ve notified HMRC in advance that they will not make any such payments The measures will take effect from 6 April 2026.