Patrick Crookes considers the forthcoming changes to CIS from 6 April 2021, looking at the impact to both the construction sector and organisations with significant construction spend.
Tax in the construction sector is very much in the spotlight. With the implementation of the domestic reverse charge effective from 1 March 2021, and the impending introduction of the off payroll workers legislation from 6 April 2021, it would be perhaps forgiven for the forthcoming changes to CIS from 6 April 2021 to have fallen off the radar!
I have considered the impact of arguably the two most pertinent changes included in the draft legislation concerning CIS, effective from 6 April 2021.
Cost of materials
A subtle change of wording can have a lasting impact. At the time of writing (February 2021) s.61(1) of Finance Act 2004 states: