HM Revenue & Customs (HMRC) is sending letters to contractors regarding potential errors in subcontractor payment rates for the tax year 2025 to 2026, advising them on how to correct these errors.
Key takeaway
HMRC is sending letters to construction contractors about errors in CIS subcontractor payment rates for 2025-26.
- Step 1 · The triggerHMRC issues letters to contractors highlighting potential errors in CIS subcontractor payment rates for 2025-26
- Step 2 · Knock-oncontractors flagged by HMRC must review and correct CIS records, incurring administrative costs and risk of penalties
- Step 3 · Reaches youaffected construction SMEs experience higher compliance burden and cash-flow uncertainty, squeezing near-term operating margins
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
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