ICAEW calls for further guidance on CIS changes

The Institute of Chartered Accountants in England and Wales (ICAEW) has urged HMRC to publish draft regulations and guidance on the forthcoming changes to the Construction Industry Scheme (CIS).

12 Jan 2021

The Institute of Chartered Accountants in England and Wales (ICAEW) has urged HMRC to publish draft regulations and guidance on the forthcoming changes to the Construction Industry Scheme (CIS).

The ICAEW has called for HMRC to 'move quickly' to give businesses enough time to prepare. The CIS changes are set to take effect from April 2021. However, HMRC is yet to publish secondary legislation, guidance or IT specifications that will be required for businesses to make the relevant changes.

The ICAEW has also voiced concerns over plans to remove firms' ability to take account of the cost of materials when paying down the chain. It warned that this change could result in businesses having insufficient funds to pay subcontractors.

Commenting on the upcoming CIS changes, the ICAEW said: 'As there are now only three months until the implementation date, consideration should be given to deferring commencement until April 2022.'

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