HM Revenue & Customs has issued guidance regarding penalties for deliberate non-compliance with the Construction Industry Scheme (CIS) payments or returns.

UK · 2026-09-15

1. Step 1 · The triggerHMRC issues guidance increasing penalties for deliberate CIS non-compliance, raising the expected cost of non-compliant behaviour
2. Step 2 · Knock-onconstruction contractors and subcontractors face higher financial and compliance risk, prompting stricter internal controls and shifting market share toward compliant firms
3. Step 3 · Reaches youUK construction SMEs with CIS exposure must allocate more resources to compliance, directly impacting their cost base and operational risk

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: HM Revenue & Customs

This is automated analysis for information only. It is not investment advice, not a recommendation, and not a solicitation to buy or sell any security. Branch² is not authorised or regulated. Do your own research.