Gross Payment Status (GPS) is the highest tier of CIS registration. A subcontractor holding GPS is paid the full invoice amount with no CIS deduction (0%), settling their own tax through Self Assessment or Corporation Tax at the end of the year rather than through advance withholding.
To qualify for GPS in 2026/27 a subcontractor must pass three tests simultaneously:
- Business test. The applicant carries out construction work in the UK and operates the business through a bank account.
- Turnover test. Net annual CIS turnover (excluding VAT and the cost of materials) must reach: £30,000 for sole traders; £30,000 per partner or £100,000 total for partnerships; £30,000 per director or £100,000 total for limited companies; and £30,000 per controller for closely controlled companies with five or fewer controllers. The measurement window is the last 12 months of CIS work.
- Compliance test. All tax obligations must have been met on time in the past 12 months: no late Self Assessment returns, no overdue tax, no PAYE defaults.
The cash-flow benefit of GPS is substantial. A subcontractor earning £500,000 a year who loses GPS reverts to the 20% registered rate: that is roughly £100,000 a year in cash held by HMRC rather than in the business.
Since Finance Act 2026 (enacted, Royal Assent 18 March 2026), GPS can be revoked immediately without advance notice where HMRC believes a contractor knew or should have known about fraudulent links in the supply chain. A 5-year reapplication ban (up from 1 year) applies where revocation is on fraud grounds. This means maintaining GPS now requires active due diligence: re-verifying subcontractors, checking Companies House records and confirming bank details before payments.
See Gross Payment Status, our guide to how to qualify, apply and keep GPS in 2026, and the GPS eligibility checker calculator.