Branch² Intelligence

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.

UK · 2026-09-18

Key takeaway

HMRC is sending letters to construction contractors about errors in CIS subcontractor payment rates for 2025-26.

  1. Step 1 · The triggerHMRC issues letters to contractors highlighting potential errors in CIS subcontractor payment rates for 2025-26
  2. Step 2 · Knock-oncontractors flagged by HMRC must review and correct CIS records, incurring administrative costs and risk of penalties
  3. 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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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.