FIS has conducted a review of two pieces of guidance to ensure they remain accurrate and aligned with current requirements of our community.

Technical Note: Spontaneous breakages of toughened glass

Listening to our members and the wider community, FIS has noticed an uptick in reports of glass breakage being attributed to Nickel Sulphide (NiS) inclusions. We have consulted with expertise within membership in order to revise and re-publish our existing guidance on spontaneous breakages of toughened glass which can be downloaded here.

It is important to recognise that failure in glass due to NiS inclusions is often difficult to formally diagnose, and there are other factors that can cause apparently spontaneous breakage or stress that will contribute to breakage, and these should not be overlooked to avoid NiS inclusions becoming an easy scapegoat for other more complex design issues.

When diagnosing failure and organising replacement works it is important to consider the full range of contributory factors that could have caused breakage in order to minimise the risk of future breakage.

FIS Best Practice Guide: Servicing Operable Walls

We have also updated the FIS Best Practice Guide, Servicing Operable Walls, following a review of current guidance.

Developed by the FIS Operable Wall Working Group, the guide supports facility managers and building owners in maintaining operable walls safely and effectively. It highlights the importance of regular servicing to ensure correct operation, preserve acoustic performance and protect users.

Operable walls are widely used across education, leisure and commercial settings, but can be prone to damage or reduced performance if not properly maintained. The guide outlines servicing requirements, helps identify wall types and stresses the need for competent engineers.

With some panels exceeding 6 metres in height and weighing up to 500kg, FIS also emphasises the importance of appropriate training and compliance with health and safety regulations.

The Servicing Operable Walls guide is available free to FIS members and can be downloaded here.

This tax year HMRC has been handed new powers to help tackle perceived fraud in the administration of the Construction Industry Scheme (CIS).

From 6 April 2026, if a business makes or receives a payment that it knew or should have known was connected to fraud, HMRC can:

• immediately remove Gross Payment Status (GPS)
• assess the business for the related tax loss
• charge a penalty of 30%, which can apply to the business or its officers

In addition, those who have GPS removed immediately due to fraud or serious non-compliance will be prevented from reapplying for GPS for a period of 5 years.

HMRC envisage refinement to CIS will add £205 million to tax collections from the sector in the tax year 2026/2027 alone. 

Who is this targeting

Businesses who operate within the Construction Industry Scheme (CIS) who knowingly (or unwittingly due to a lack of due diligence) enter into transactions connected to fraud will be affected by these measures.  

General description of the measure 

These measures tackle businesses who knowingly (or unwittingly due to a lack of due diligence) engage in processes which are deemed tax evasion.

Where it can be shown that a business knew or should have known that they entered into a transaction that was connected with the fraudulent evasion of tax, the measures:  

1. Provide for the immediate cancellation of Gross Payment Status (GPS).
2. Make the business who entered into the transaction connected to fraud liable for the lost tax. 
3. Allows a penalty of 30% of the lost tax to be charged to the business found liable, as well as to its directors and other persons connected to the business.  

The time limit for reapplication where GPS has been immediately removed is also increased from one year to 5 years. The other grounds for immediate GPS cancellation are where a business has provided false information at registration for GPS, has fraudulently made an incorrect return or provided incorrect information, or knowingly failed to comply with a CIS obligation. 

Policy objective 

These measures support the government’s objective to close the tax gap, tackle non-compliance and make the tax system fairer. These measures protect the Exchequer from revenue losses — this will also reduce the large sums of money going to organised criminal gangs involved in supply chain fraud in construction or involving CIS deductions. They also ensure that there is level playing field by preventing fraudulent operators under-cutting the compliant businesses that operate within the rules. 

Changes to this legislation ensures these businesses undertake the necessary due diligence to prevent illegitimate operators from entering the market. Where businesses do knowingly engage in fraudulent supply chains, GPS will be removed immediately and the business will be made liable for the tax losses, and penalties will be chargeable on the business itself and its directors, or other persons connected to the business.  

Background to the measure 

There have been several reforms in recent years to tackle non-compliance within the construction sector. In 2021 changes were made to reduce the abuse of the CIS, and to tackle VAT losses due to supply chain fraud. In 2023, HMRC consulted on measures to further strengthen the scheme and introduced legislation in April 2024 to bolster the GPS tests.  

These powers are designed to help HMRC tackle fraud and non-compliance within the scheme. However, HMRC assert that serious non-compliance in the construction sector continues to develop and remains a significant risk – this includes sophisticated fraud by criminals.

The measure was first announced at Budget 2025. 

Current law  

The current CIS legislation can be found in Part 3, Chapter 3 and Schedule 11 Finance Act 2004 (FA04) and in the Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045). 

Proposed revisions 

Legislation will be introduced in Finance Bill 2025-26 to amend Part 3, Chapter 3 in FA04 and S.I. 2005/2045. Section 66(3) in FA04 will be amended to provide the power to immediately remove GPS where a business knew or should have known that the payments made or received were connected with fraudulent evasion of tax. 

Section 66(7) of FA04 is amended to prevent re-application for a period of 5 years where GPS is cancelled under Section 66(3) of FA04. 

New legislation will also be introduced in Part 3, Chapter 3 FA04 and S.I 2005/2045 to allow the business that knew or should have known that the payments made or received were connected with fraudulent evasion of tax liable for the lost tax and penalties of up 30% of the lost tax. The officers of the business could also be liable for these penalties.  

Practical Steps for Contractors

To reduce exposure under the strengthened CIS rules, FIS Members should prioritise the following actions:

Practical Steps for FIS Members to Consider

To reduce exposure under the strengthened CIS rules, contractors should prioritise the following actions:

• Strengthen supply‑chain due diligence
• Map the full labour chain, identifying any umbrella companies, payroll intermediaries or outsourcing partners
• Verify subcontractor tax registrations, trading history and insurance
• If using an Agency or Umbrella verify PAYE operation by e.g. reviewing sample payslips, submissions and confirming employment status and entity employing the worker
• Check for any warning signs such as recent director changes, short‑lived tenures, entities or unusually low pricing
• Obtain written confirmation that no offshore, mini‑umbrella or non‑compliant payment models are used
• Reject arrangements lacking transparency or involving intermediaries who cannot clearly explain how workers are paid and taxed
• Review and tighten labour‑only subcontractor contracts
• Ensure contracts clearly set out CIS obligations, tax responsibilities and payment terms
• Require confirmation of correct PAYE operation where applicable
• Include rights to request evidence of tax compliance and workforce arrangements
• Build in termination rights where compliance concerns arise
• Revisit existing contracts to ensure they reflect current CIS risks
• Review onboarding and procurement processes
• Embed CIS compliance checks into tendering and subcontractor approval, where appropriate consider declarations confirming tax compliance and payment practices
• Reassess high‑risk suppliers regularly, not just at onboarding
• Improve internal governance and oversight
• Ensure directors and senior managers have visibility of CIS risks
• Formalise reporting lines and escalation procedures
• Conduct periodic internal reviews of CIS controls and supply‑chain monitoring
• Maintain comprehensive documentation
• Keep records of due‑diligence checks, decisions and follow‑up actions
• Document any concerns raised and how they were addressed
• Ensure audit trails exist for all CIS‑related payments
• Act early when red flags appear
• Seek clarification or additional evidence from suppliers
• Replace non‑compliant or high‑risk operators promptly
• Consider pause payments where compliance thresholds are not met (this is a last resort and should only be done when taking appropriate legal advice!).

By embedding these controls into everyday operations, contractors can demonstrate that they have taken reasonable steps to prevent fraudulent operators entering their supply chain and significantly reduce the risk of GPS loss, tax assessments and penalties.

There remains a close link between tax evasion and modern slavery.

Finishes and Interiors Sector (FIS) has supported a recent Telegraph investigation that highlights mounting pressure within the UK housebuilding sector and the growing consequences for specialist supply chains. 

The article focuses on Vistry Homes, one of the UK’s largest housebuilders. While headlines have focused on balance‑sheet risk and market uncertainty, the Telegraph also draws attention to a persistent and systemic issue: late payment and cashflow pressure being pushed down the supply chain. This mirrors long‑standing concerns raised by FIS members and repeatedly escalated by FIS to Government. 

Government‑published payment data referenced in the article shows Vistry pay 50% of invoices late and the value of late and disputed payments exceeds a staggering £220m. Contractors report extended delays, repeated chasing, administrative barriers and requests for payment deferrals, issues that directly weaken business resilience and increase financial risk across the sector. 

Commenting in the article, Iain McIlwee, Chief Executive of FIS, said the scale of the problem was “concerning”: 

“We have had contact with a number of companies reporting payment concerns associated with Vistry, blaming ‘administration problems’, ‘missed applications’ and the old ‘sorry, forgot to process your invoice’,” he said. “These are companies working across multiple sites that have incurred significant costs and are not being paid despite chasing multiple times.”

FIS is clear that treating the supply chain as a source of working capital is not sustainable. It undermines confidence, weakens delivery capacity and ultimately threatens the viability of housing programmes themselves. It also adds to mental health issues in the sector with more than four in ten specialist supplying the housebuilding sector feeling stressed about cashflow “most or all of the time”. 

As Government moves to tighten enforcement on late payment and improve payment transparency, FIS is calling for immediate improvements in commercial discipline, early engagement and realistic cost management to prevent financial pressure being passed downstream.

 The Telegraph investigation reinforces FIS’s long‑standing position: a credible and sustainable housing programme depends on a fair, well‑funded and promptly paid supply chain.

 Vistry have warned investors that rising construction costs could significantly undermine its financial position. Vistry has acknowledged that, under a “severe but plausible” scenario, continued cost inflation could result in it exceeding its committed borrowing facilities.

 As Government move to clamp down on poor payment, FIS is calling for a greater focus in procurement on commercial behaviour to prevent financial stress and risk being passed downstream.

 The Telegraph coverage reinforces FIS’s long‑standing position: a sustainable housing programme depends on a fair, well‑funded, and promptly paid supply chain.

 You can download the latest FIS Research on Procurement, Contracts and Payment Practices in the Housebuilding Supply Chain here. 

You can read the full article in the Telegraph here (subscription required).

 https://www.telegraph.co.uk/business/2026/04/05/iran-war-threatens-housebuilding-giant-with-fresh-trouble