Explanatory note

These Regulations amend the Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045) (“the 2005 Regulations”), which make provisions in relation to the construction industry scheme established by Chapter 3 of Part 3 of the Finance Act 2004.

Regulation 13 of the 2005 Regulations provides that in certain circumstances an officer of Her Majesty’s Revenue and Customs (“HMRC”) may determine the amount which a contractor in the construction industry is liable to pay to HMRC. Regulation 3 of these Regulations provides that Part 5A of the Taxes Management Act 1970, which makes provision in relation to the payment of tax, applies in relation to such determinations.

These Regulations also make amendments to the 2005 Regulations as a consequence of amendments made to the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682) which alter the arrangements under which certain employers are required to make payments to HMRC using electronic means. The amendments in these Regulations ensure that the arrangements for electronic communications in respect of the construction industry scheme will remain consistent with those for Pay As You Earn generally.

A full Impact Assessment of the effect this instrument, apart from regulation 3, will have on the costs of business and the voluntary sector is available on the HMRC website and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website.

A full Impact Assessment has not been produced in relation to regulation 3 of this instrument as a negligible impact on the private or voluntary sector is foreseen.