Construction Industry Scheme (CIS) update: Monthly nil returns from April 2026

From April 2026, significant changes to the Construction Industry Scheme (CIS) will come into effect, impacting contractors who are currently registered but not actively making payments to subcontractors.

What’s changing?

Under the new rules, contractors will be required to submit monthly nil CIS returns for any period in which no payments are made to subcontractors. Previously, contractors could simply refrain from filing a return if there was no activity, but this will no longer be permitted.

Who does this affect?

This change applies to all businesses registered as contractors under CIS, including those that:

• have temporarily paused construction activities
• are between projects
• have registered in advance but not yet started making subcontractor payments

Even if no subcontractors are engaged during a tax month, a return must still be filed confirming this position.

Why the change?

HMRC is introducing this measure to improve compliance and increase visibility over contractor activity within the construction sector. By requiring regular reporting—whether active or not—HMRC aims to reduce errors, omissions, and potential abuse of the scheme.

What do you need to do?

Contractors should begin preparing now to ensure they are ready for the new reporting requirements:

• review your CIS registration status – If you are no longer operating as a contractor, consider making an inactivity request to avoid unnecessary filings.
• implement internal processes – Ensure systems are in place to submit returns every month, even when no payments are made.
• avoid penalties – Late or missing returns may attract penalties, so maintaining compliance will be essential.

If you have any questions about how these changes may affect your business, please contact Alan Rolfe using the details below.