13 Jan 21
The Institute of Chartered Accountants in England and Wales (ICAEW) has called on HMRC to publish draft regulations and guidance on the forthcoming changes to the construction industry scheme (CIS).
The ICAEW has urged HMRC to “move quickly” to give businesses enough time to prepare, as changes are set to take effect from April 2021. Alternatively, it says the Government should consider pushing the measures back to 2022.
So far, HMRC have yet to publish further guidance, including secondary legislation and IT specifications.
The organisation has also raised concerns about plans to remove firms’ ability to take the cost of materials into account when “paying down the chain”.
It said the change may mean businesses are left without enough cash to pay subcontractors the amount they are owed.
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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