HMRC targets CIS fraudsters with harsh new sanctions
- Jan 9
- 1 min read
From April 2026, contractors and subcontractors face stricter rules as HMRC targets persistent non-compliance.
In the new financial year, HMRC will have stronger powers to tackle fraud under the Construction Industry Scheme (CIS).
HMRC can immediately remove Gross Payment Status (GPS) where a business knew or should have known it was involved in fraudulent tax arrangements.
Businesses found complicit may be held liable for unpaid tax, with penalties of up to 30% of the tax lost.
Company directors and connected individuals can also be personally penalised.
Where GPS is removed due to fraud or serious non-compliance, businesses will be barred from reapplying for five years (up from one year).
The changes are designed to disrupt contrived supply chains, prevent abuse, and protect compliant contractors.
Contractors and subcontractors are expected to carry out stronger due diligence and take action if fraud risks are identified.
If you're concerned about your current CIS payroll supply chain, please contact us on 0330 052 5200 or email sales@mineralpayroll.com.
Comments