If you operate as a CIS contractor, it’s important to remember that from April 2026 you are required to submit a Construction Industry Scheme (CIS) return every month. This obligation applies even during periods when you have not used any subcontractors.
To remain compliant, contractors should ensure they complete one of the following each month:
- Submit a CIS return showing payments made to subcontractors.
- Submit a nil return where no subcontractors have been used.
- Submit an inactivity request, which can cover a period of up to six months.
Nil returns and inactivity requests can be submitted through HMRC’s CIS online service or via certain commercial CIS software packages.
Be Aware of Late Filing Penalties
Contractors who did not submit a return or an inactivity request for the period 6 April to 5 May 2026 may face escalating penalties, including:
- An initial fixed penalty of £100.
- A further fixed penalty of £200 after two months (July 2026).
- A tax-geared penalty after six months (December 2026), being the greater of £300 or 5% of any liability that should have been reported.
- An additional tax-geared penalty after 12 months, with the amount dependent on the circumstances surrounding the late filing.
It’s worth noting that penalties will only arise where a contractor has neither filed a return nor submitted an inactivity request.
How We Can Help
For many CIS contractors who already file returns on time, submit nil returns when required, or notify HMRC of periods of inactivity, these changes are unlikely to have any significant impact.
However, if you’re unsure of your filing obligations, need assistance submitting returns, or would like support managing your CIS compliance, we’re here to help. We can review your CIS position, ensure deadlines are met, and help you avoid unnecessary penalties while keeping the administrative burden to a minimum.