Barbara Bento, Tax Disputes and Investigations Partner, has contributed an article to HMRC EIP Magazine examining HMRC’s strengthened Construction Industry Scheme (CIS) powers and the risks now facing contractors.

In “CIS fraud rules: the ‘should have known’ standard”, Barbara explains how HMRC can now immediately cancel Gross Payment Status (GPS) where a business knew, or should have known, that it was involved in a transaction connected to tax fraud.

The article looks at HMRC’s shift away from treating CIS compliance as a box-ticking exercise, with enquiries now focusing more closely on contractor behaviour, supply chain risk, and whether reasonable steps were taken to identify and respond to warning signs.

Barbara also considers the potential consequences for construction businesses, including loss of GPS, penalties, cashflow disruption, and reputational risk. She highlights the importance of robust subcontractor onboarding and proper review of CIS verification results.

Barbara’s article appears in the April-May 2026 edition of HMRC Enquiries Magazine.

Click the link below to read the article.