Draft Finance Bill 2021—tackling construction industry scheme abuse

Table of contents

• What is the background to this draft legislation?
• What does the draft legislation propose?
• A power to enable HMRC to amend the effect of certain CIS deduction claims on employer returns made by subcontractors
• Changes to the current rules on deemed contractors
• Changes to the current rules on the cost of materials
• Expansion of the scope of the CIS false registration penalty
• Does the draft legislation cover all proposals contained in the March 2020 consultation or are there differences?
• What is the key impact of the draft legislation and do you have any practical concerns?

Article summary

Tax analysis: Tracey Wright, partner at Osborne Clarke LLP, explains the background to the Draft Finance Bill 2021 and the government’s plan to tackle construction industry scheme (CIS) abuse.