HMRC expands CIS enforcement powers in major crackdown

HMRC has expanded its powers to tackle fraud within the Construction Industry Scheme (CIS), marking one of the biggest compliance shifts in years.

Since April 2026, businesses can now be held liable for fraud anywhere in their supply chain - even if they were not directly involved.

The key test is whether they “knew or should have known” the activity was linked

to tax evasion.

Under the new rules, HMRC can:

• Remove Gross Payment Status immediately

• Recover unpaid tax from businesses

• Apply penalties of up to 30%, including to company directors

  
  

The changes shift responsibility firmly onto contractors to actively monitor and verify their supply chains — with increased financial and personal risk for getting it wrong.

What This Means

The message from HMRC is clear: businesses must now demonstrate robust due diligence across their entire supply chain or face serious consequences.

How Mineral Payroll Can Help

Mineral Payroll supports businesses with fully compliant, transparent CIS payroll solutions, helping businesses reduce risk, strengthen due diligence and stay aligned with evolving HMRC regulations.

For support with CIS compliance and payroll solutions, contact our sales team on 0330 052 5200 or email sales@mineralpayroll.com.