CISR85010 | CIS fraud measures: Introduction

From 6 April 2026, HMRC has new powers to tackle fraud within the CIS.

Where a business makes a payment for construction operations or treats a sum as deducted under the CIS in a return (‘a CIS credit’), and the business knew or should have known that the payments or credits were connected to deliberate non-compliance by another party (or the business themselves if they make a credit claim where no deduction was made), HMRC can:

• Make a determination on the business (20% of the payment made (see CISR85020) or equal to the CIS credit claimed (see CISR85040)

• Charge a penalty to the business - 30% of the determination (see CISR85120)

• If the business is a corporate entity or unincorporated association and the actions of the body are attributable to an officer, transfer this penalty to the officer (see CISR85150)

• Immediately cancel the business’ gross payment status (GPS) (see CIS85210)