CIS in 2026: nil returns are back and HMRC has tougher powers
Several changes to the Construction Industry Scheme took effect on 6 April 2026.
Nil returns are back
Contractors must now submit a CIS return every month, even where no subcontractors were paid, unless HMRC has been told in advance. The deadline is the same as any other return: the 19th of the following month. The full late filing penalty regime applies again.
Gross payment status
HMRC can now remove gross payment status immediately where it believes a business knew, or should have known, that it was connected to tax fraud. Where that happens, the wait before reapplying has risen to five years.
Public bodies
Payments to local authorities and certain public bodies no longer need to be reported under CIS.
What has not changed
The deduction rates remain 20% for registered subcontractors, 30% for those not registered and 0% for those with gross payment status.
Read more in our CIS guide, or talk to us about handling your monthly returns.
General information, not personal tax advice. Written on 10 September 2026.