Registration for gross payment for the construction industry scheme (CIS) can be cancelled at any time when it appears to HMRC that the person's application for gross status would fail, if made at that time1. Accordingly, gross status can be cancelled where a registered person fails either the compliance or turnover test at any time2.
Registration can also be cancelled where it appears to HMRC that the person has either made an incorrect CIS return or has provided incorrect CIS information, or has failed to comply with any provision of the CIS scheme (whether as a contractor or subcontractor)3.
From 6 April 2024, satisfactory VAT compliance may now be considered as part of a gross payment status application4. However for those who are already registered for gross payment status at that date, the change will not be retrospective. In such cases, gross payment status will not be removed for non-VAT compliance prior to 6 April 20245.
In this situation a determination may
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Web page updated on 17 Mar 2025 17:28