CIS Updates for 2025: What You Need to Know

When operating within the construction sector, it's essential to stay updated on changes to the Construction Industry Scheme (CIS). Here are some key updates that may impact our supply chain:

🔹 Traffic Management Services in CIS (March 2025): Starting in March 2025, certain traffic management services will be included under CIS. This includes services directly related to construction projects, such as setting up and maintaining road closures, diversions, traffic control, and safety measures. However, general traffic management unrelated to construction, administrative tasks, or permanent road infrastructure work will not be included under CIS.

If any of our contingent workforce provide these services, we must apply the correct CIS tax deductions.

🔹 Digital CIS Registration: Since late last year, subcontractors and GPS (Gross Payment Status) applications now require digital registration and online submission of supporting documents, making it easier to track applications.

🔹 VAT and GPS Compliance: Subcontractors must now meet VAT requirements to maintain their GPS status. Failing to comply could result in the loss of GPS status, so it's important to stay on top of VAT records.

🔹 Penalties for False GPS Information (April 2025): Starting in April 2025, providing false information for GPS applications will result in penalties, ensuring fair use of CIS rules.

🔹 HMRC Helpline Delays: Due to industrial action, HMRC’s Employer and CIS helplines are experiencing delays, which they will expect will continue until May 2025. We will be encouraging our contingent workforce to make use of HMRC's digital services to avoid longer wait times.

🔹 Expanded 'Deemed Contractors' Definition (April 2025):  From April 2025, any business spending over £3 million annually on construction activities will be classified as 'deemed contractors' under the Construction Industry Scheme (CIS), regardless of their primary sector. As a result, they must register as contractors and adhere to CIS requirements. Stonebridge already ensures the correct deductions are made from all subcontractor payments and reported to HMRC.

For more information, please see: Changes to tackle Construction Industry Scheme abuse - GOV.UK

How Stonebridge Can Help: We’re here to help you navigate these changes and stay compliant. Our team can assist with reviewing your processes and ensuring your subcontractors meet the latest CIS requirements.

If you have any questions please let us know.