FIS is highlighting an important upcoming change to the UK tax system, with Making Tax Digital (MTD) for Income Tax set to come into force from 6 April 2026.

The update, highlighted by Build UK, represents a significant shift in how self-employed individuals manage and report their tax, forming part of HMRC’s wider programme to modernise the tax system and reduce errors.

What is Changing?

The new system will be introduced in phases over the next three years, beginning with individuals who have an annual turnover above £50,000.

Under the new requirements, affected individuals will need to:

• Use HMRC-recognised software to keep digital records of income and expenses
• Submit quarterly updates to HMRC via their chosen software
• Receive an estimated tax position based on submitted data
• Continue to pay a single annual tax bill, with the deadline remaining 31 January

Both free and paid software options are expected to be available, allowing individuals to select a system that suits their business needs.

What You Need to Do

Individuals who meet the criteria will need to:

• Check their eligibility for the new service
• Sign up in advance, as enrolment will not happen automatically

HMRC has published further guidance, including a series of frequently asked questions, to support businesses and individuals in preparing for the transition.

Why This Matters

This change will affect many self-employed individuals working across the finishes and interiors sector, particularly those operating as sole traders or subcontractors.

Early preparation will be key to ensuring a smooth transition to digital record keeping and reporting.

FIS encourages members to review the requirements and consider how the changes may impact their business processes.

A new report from the Finishes and Interior Sector (FIS), Procurement, Payment and Contract Management: The Challenges in the Low and Mid-rise Housing Sector, exposes the structural barriers facing the UK’s housebuilding supply chain and calls for urgent reform in procurement, payment and contract management practices.

The report highlights concerns raised directly by specialist contractors about the way that current commercial behaviours are restricting capacity, inhibiting workforce development, and diminishing the sector’s ability to perform and invest in more modern construction methods.  FIS warns that without decisive action, these pressures could threaten the industry’s ability to meet national housing targets.

Key insights from the report include:

• Specialist contractors typically provide 60–78 days of credit due to payment terms and delays.
• Two-thirds face post-award price reductions despite agreed contracts.
• Retention practices continue to restrict cashflow and create friction.
• Training investment is constrained as a result, limiting the future skills pipeline.
• 41% report frequent cashflow stress, highlighting the human impact.

Iain McIlwee, CEO of FIS said:

‘For too long, the specialist supply chain has operated under conditions that limit growth and stifle innovation. This report gives voice to the people who deliver our homes, highlighting the changes needed to unlock a resilient, skilled workforce capable of meeting the UK’s ambitious housing targets. It is not a point of more needs to be done; it a point of more has to be done as we are significantly behind schedule on national targets.”

The consequences of inaction are already being felt. When a major contractor enters administration, the impact can be severe. In one recent case, over £43m of debt was left across the supply chain with SME contractors and suppliers bearing the brunt and affordable housing developments left at risk of demolition. This is a prime example of not just one company failing but the consequential ripple effect it has on the economy and the wider market.

FIS is calling on housebuilders, commissioning bodies, and policymakers to work collaboratively with the supply chain to address these challenges, restore confidence, and create a sustainable environment for future workforce investment.

The full report Procurement, Payment and Contract Management: The Challenges in the Low and Mid-rise Housing Sector, is available to download from the FIS website here.

The Building Safety Regulator (BSR) has introduced a new Remediation Improvement Plan aimed at speeding up the processing of Gateway Two applications for remediation projects.

The regulator has also set a target to clear the majority of outstanding remediation applications submitted in 2024 by 30 April 2026, as part of wider efforts to accelerate progress on higher-risk residential building remediation.

Key Measures in the Improvement Plan

The plan introduces several operational changes designed to improve efficiency and reduce application processing times.

Key measures include:

• Creation of a Remediation Multi-Disciplinary Team (MDT)

A dedicated cohort will be established to manage remediation applications, similar to the existing Innovation Unit used for new-build Gateway Two submissions. The MDT will include account managers to streamline communication with applicants.

• Increased regulatory capacity

The BSR has launched a recruitment drive to increase the number of Regulatory Leads, helping to reduce individual caseloads and accelerate application reviews.

• ‘Approval with Requirements’ approach

Where applications demonstrate substantive compliance with Building Regulations, the regulator may issue conditional approval while allowing certain additional information to be provided later.

• New guidance for remediation applications

Specific guidance is being published to clarify requirements for remediation Gateway Two submissions. Build UK guidance sets out the information that must be included when applying for works to existing Higher-Risk Buildings (HRBs).

Latest Data on Remediation Progress

Alongside the improvement plan, the Ministry of Housing, Communities and Local Government (MHCLG) has released updated data on remediation progress for residential buildings 11 metres and above in England.

As of January 2026:

• Remediation work has been completed on 36% of the 4,191 buildings identified
• Work is currently underway on a further 16%
• For buildings 18 metres and over, remediation has been completed on 46% of the 2,355 buildings identified

The new plan is intended to increase the pace of approvals and help accelerate the delivery of remediation works across the sector.

FIS will continue to monitor developments and provide updates for members as further guidance and regulatory changes emerge.

CITB has announced updated arrangements for how in-scope employers will be able to access funding for training from 1 April 2026, with the level of support available depending on the size of the organisation.

The update follows CITB’s recent decision to pause new training bookings through Employer Networks for courses taking place before 1 April, after confirming that the current year’s budget has been fully committed due to high demand.

Employer Networks funding from April

From the start of the 2026/27 financial year, micro to medium-sized employers will continue to be able to access training through Employer Networks, although funding will now be capped depending on business size.

Training will be available through 50% match funding, or via a fixed contribution for health and safety courses, with the following caps applying:

• Micro employers: up to £1,500
• Small employers: up to £2,000
• Medium employers: up to £4,500

New funding route for large employers

Under the revised approach, large employers will no longer access training funding through Employer Networks.

Instead, CITB is introducing a new Large Employer Fund, which will provide £18,000 per year for eligible businesses to spend on in-scope training.

Funding will be paid against an approved training plan or on receipt of evidence that training has taken place.

Other funding routes remain available

CITB has confirmed that all employers, regardless of size, will still be able to access support through a range of existing funding schemes, including:

• Apprenticeship grants
• Travel to Train support
• Qualification grants
• Short course grants for certain specialist courses
• The Industry Impact Fund

FIS response

FIS has raised concerns with CITB regarding the level of the funding caps, particularly where the caps are linked to employee numbers despite higher levy contributions associated with CIS workers.

These concerns will be discussed further with CITB at upcoming meetings, and FIS will continue to represent member feedback as the new arrangements are implemented.

Further updates will be shared with members as discussions progress.

FIS has updated its Integrated Management Standard (IMS) as part of a comprehensive new Organisational Capability Toolkit, to help businesses in the construction industry streamline their operations, enhance their organisational capability, and comply with the latest Building Regulations.

Recent updates to the Building Regulations now require businesses to demonstrate their organisational capability, ensuring that all team members are competent and supported by effective process controls. While managing foreseeable risks has always been a legal obligation, this heightened focus from clients and Building Control officers now demands clearer evidence that companies’ processes meet required standards.  

The FIS Integrated Management Standard (IMS), which forms part of the FIS Organisational Capability Toolkit, will help companies implement tried and proven methods of streamlining their company for the benefit of their business and its stakeholders. It will help to link and contextualise the wealth of information that FIS members have available to support compliant business management and how they can use their membership to support claims of organisational capability. 

The standard has had substantial chapters introduced to address: 

• Competence management 

• Contract management 

• Information management 

This IMS sits as a central resource to help align and control resources. It provides a framework for implementing risk management systems (supported by the FIS Product, Process, People Quality Framework) that will help organisations to meet statutory and legislative requirements. 

Speaking about the updated IMS, Ashraf Ali, Compliance Director at FIS member Collins Construction said:

Contractors are operating in an environment where clients, regulators and dutyholders expect a far higher level of assurance around competence, management systems and organisational capability than ever before.

The revised FIS Integrated Management Standard is a timely and valuable update that helps contractors like Collins implement practical, and more importantly, proportionate systems that not only support compliance, but also demonstrate the professionalism and consistency required to secure and deliver work in today’s market.

The fact that this has been developed through collaboration across the sector is particularly positive. Shared standards such as this help raise the bar for the whole industry and support the finishes and interiors community in responding to the challenges of regulatory change, increased scrutiny, and higher client expectations

The FIS Integrated Management Standard can be downloaded at https://www.thefis.org/membership-hub/publications/business-management/integrated-management-system/  

The Organisational Capability Toolkit is available at https://www.thefis.org/knowledge-hub/product-process-people/  

For further information or for any questions please contact FIS at info@thefis.org or call 0121 707 0077. 

FIS Training Provider member DMR Training & Consultancy has announced that funding is currently available for a range of construction NVQs, subject to eligibility criteria being met.

The funding supports individuals working across the finishes and interiors sector, helping operatives and supervisors gain recognised qualifications that demonstrate competence and support career progression.

Opportunities are currently available for candidates working in Greater Manchester and Greater London, covering a range of Level 2 and Level 3 trade and supervisory qualifications.

This is a valuable opportunity for employers and individuals looking to formalise skills, improve competency and access funded training support.

Funded NVQs – Greater Manchester

Level 2 Trade NVQs

• NVQ Certificate in Fitted Interiors (Construction)
• NVQ Certificate in Interior Systems (Construction) – Dry Lining Boarder
• NVQ Certificate in Interior Systems (Construction) – Dry Lining Finishing
• NVQ Certificate in Interior Systems (Construction) – Operable Partition Systems
• NVQ Certificate in Interior Systems (Construction) – Ceiling Fixing
• NVQ Diploma in Associated Industrial Services Occupations – Passive Fire Protection
• NVQ Diploma in Wood Occupations (Construction) – Site Carpentry
• NVQ Diploma in Plastering

Level 3 Trade NVQs

• NVQ Diploma in Wood Occupations (Construction) – Site Carpentry
• NVQ Diploma in Occupational Work Supervision (Construction)
• NVQ Diploma in Trowel Occupations (Construction)
• NVQ Diploma in Interior Systems (Construction) – Complex Suspended Ceiling Systems
• NVQ Diploma in Interior Systems (Construction) – Stretched Ceiling Fixing
• NVQ Diploma in Plastering (Construction) – Fibrous
• NVQ Diploma in Plastering (Construction) – Solid

Funded NVQs – Greater London

Level 3 Trade NVQs

• NVQ Diploma in Occupational Work Supervision (Construction)

Find Out More

Funding is subject to eligibility criteria, and places may be limited.

For more information or to discuss suitability, please contact Sarah at DMR Training & Consultancy:

01942 673047

sarah@dmrltd.co.uk