The consultation sets out two areas where the scheme may be causing unnecessary administrative burdens, specifically for landlord/tenant payments; and multiple reporting requirements by some groups.

Currently the decision as to whether CIS should be applied to a payment made by a landlord to a tenant has to be made by the landlord. ‘The definition of what is and is not a reverse premium has led to difficulty in landlord-tenant transactions where businesses would otherwise be completely outside CIS,’ HMRC said.

‘Being within CIS is administratively burdensome for both the landlord and the tenant, and receiving payment under deduction of tax adversely impacts the cash flow of the tenant,’ HMRC added.