Construction Industry Scheme: tackling fraud
This tax information and impact note is about changes to tackle Construction Industry Scheme fraud.
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Linked documents
- Policy Paper Tackling Construction Industry Scheme fraud
▤ Verbatim text from source document
This measure strengthens HMRC’s powers to tackle fraud within the Construction Industry Scheme.
From 6 April 2026, if a business makes or receives a payment that it knew or should have known was connected to fraud, HMRC can:
- immediately remove Gross Payment Status (GPS)
- assess the business for the related tax loss
- charge a penalty of 30%, which can apply to the business or its officers
In addition, those who have GPS removed immediately due to fraud or serious non-compliance will be prevented from reapplying for GPS for a period of 5 years.