Demolition is a capital-intensive trade with large contracts, specialist plant and a significant proportion of limited company operators. Most demolition subcontractors are either already on Gross Payment Status or should be applying for it. The April 2026 CIS anti-fraud changes, including immediate GPS revocation and director liability, make proper compliance management essential.
From 6 April 2026, HMRC can revoke GPS immediately and without advance notice if a contractor is found to have connections with fraud in the supply chain, on a 'knew or should have known' standard. Paying a connected party you knew, or had reason to know, was deliberately breaking CIS rules now carries a penalty of 20% of the payment under Finance Act 2026. Demolition contractors working with multiple subcontractors carry real exposure here.
Demolition contractors who pay their own subcontractors must verify CIS status before the first payment, carry out Companies House checks and verify bank account names. Failing to do so no longer simply results in paying the wrong deduction rate; under April 2026 rules it can cost GPS status and trigger director penalties.
Demolition invoices often involve significant plant hire, fuel, disposal fees and salvage materials alongside labour. Correctly identifying which elements are subject to CIS deduction and which are not requires specialist knowledge.
Demolition companies operating as limited companies that suffer CIS deductions can reclaim them in real time via the Employer Payment Summary, rather than waiting months. Many do not use this mechanism and carry unnecessary cash-flow pressure as a result.
We manage the GPS application, monitor the three qualifying tests annually, and implement the due-diligence documentation required under the April 2026 anti-fraud rules so your GPS is protected.
We configure the EPS reclaim mechanism for limited company demolition contractors, recovering CIS deductions against PAYE in real time and eliminating the 12 to 18 month wait.
We prepare and file your monthly CIS300 returns, including nil returns from April 2026, verify all subcontractors before their first payment, and issue compliant payment and deduction statements within the 14-day requirement.
Book a free call. We will talk through your CIS position, your deduction history and whether there is anything worth changing. No hard sell, no obligation.
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