# The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2016, Note: Explanatory note


(This note is not part of the Regulations)
The Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045) (“the principal Regulations”) make provision in relation to the construction industry scheme established by Chapter 3 of Part 3 of the Finance Act 2004 (c. 12). These Regulations amend the principal Regulations.
Regulation 2(2) amends the definition of “approved method of electronic communications” in regulation 2 of the principal Regulations to specify the internet service and the Electronic Data Interchange service provided through the Construction Industry Scheme Online as approved methods of electronic communications for contractors and the internet service and the Electronic Data Interchange service provided through PAYE Online as approved methods of electronic communications for agents.
Regulation 2(3) replaces regulation 4(4) of the principal Regulations to provide that the returns which that regulation requires a contractor to file, must be filed using an approved method of electronic communications except in two circumstances. These are where the contractor’s religious beliefs preclude the use of electronic communications (new paragraph (4A)) or where the contractor satisfies the Commissioners for Her Majesty’s Revenue and Customs (“HMRC”) that it is not practicable for the contractor to make the return using an approved method of electronic communications (new paragraph (4B)).
Regulation 2(4) amends regulation 6 of the principal Regulations which requires a contractor to verify whether a person to whom the contractor is making a payment under section 60 of the Finance Act 2004 is registered for gross payment status. Regulation 6 is amended to require a contractor to provide the information detailed in that regulation to HMRC by way of an approved method of electronic communication except in two circumstances. New regulation 6(2B) and new regulation 6(2C) set out the two exceptions to the general rule. The contractors to whom new regulation 6(2B) and (2C) apply are identical to the contractors to whom new regulation 4(4A) or (4B) applies.
Regulation 2(5) amends regulation 28 of the principal Regulations by reducing the amount specified for the purposes of paragraphs 7(1) and 11(1) of Schedule 11 to the Finance Act 2004. This amount relates to the minimum turnover test which firms and companies have to meet in order to be registered for gross payment status.
Regulation 2(6) makes a consequential amendment to regulation 29 of the principal Regulations to reflect the amendment to regulation 28.
Regulation 2(7) substitutes a new Table 3 in regulation 32 of the principal Regulations. This Table prescribes the circumstances in which a person will be treated as having met the condition in paragraph 4(1), 8(1) or 12(1) of Schedule 11 to the Finance Act 2004.
A Tax Information and Impact Notice covering this instrument was published on 10th December 2014 and is available at http://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.

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Source: https://www.legislation.gov.uk/uksi/2016/348/note (the official version)
Page: https://openlegislation.uk/income-tax-construction-industry-scheme-amendment-regulations-2016/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.