HMRC clarify CIS deemed contractor expenditure

HMRC clarify CIS deemed contractor expenditure

Robin Newman, Senior Manager, Employment Tax
05/07/2022
HMRC clarify CIS deemed contractor expenditure

There has been some confusion on the guidance HMRC gave on the Construction Industry Scheme (CIS) expenditure threshold for deemed contractors. As the guidance stands, it was not clear as to whether HMRC meant that the threshold of £3 million for a deemed contractor would be VAT inclusive or exclusive.

Recently, HMRC acknowledged that their guidance is not as clear as it should be. They will be amending their guidance to make it clear that it is the expenditure figure, excluding VAT, that should be considered in determining whether the £3 million deemed contractor expenditure threshold has been exceeded. 

The amended guidance will be published as soon as possible.

If you have any queries regarding your CIS, then get in touch with our specialists. 

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