Changes to CIS compliance

Change of approach for CIS nil returns

Historically, contractors were not legally required to file nil CIS returns in months where no subcontractors were paid.  

Instead, contractors were encouraged to voluntarily notify HMRC of inactive periods and any automated late filing penalties could generally be appealed and cancelled 

What has changed? 

From April 2026, HMRC has implemented a stricter approach: 

• Contractors are now legally required to file a CIS return every month, including nil returns where no subcontractors are paid 
• Failure to file (including for nil periods) will trigger automatic late filing penalties 

If your business operates within CIS, please be aware you must file nil returns. 

If you need help reviewing your CIS registration status, or have any questions or specific support needs, please contact our expert team today.