Tackling construction industry scheme abuse

New regulations (SI 2021/321) amend the Income Tax (Construction Industry Scheme) Regulations SI 2005/2045 to prevent abuse of the construction industry scheme set-off process.

HMRC will now able to:

• correct or remove construction industry scheme set-off claims made on real-time information returns where such claims are made based on an error or omission; and
• stop employers make further set-off claims for the remainder of a tax year.

The regulations also clarify the rules on the costs of materials directly incurred by subcontractors to fulfil a construction contract. 

These regulations come into force on 6 April 2021.

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