From March 1, 2025, the UK’s HMRC has clarified that traffic management activities integral to construction operations now fall under the Construction Industry Scheme (CIS). This includes installation of temporary signage, lights, cones, and pedestrian diversions linked to roadworks. Purely delivery-only services—such as simply supplying cones—remain exempt.
Implications:
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Providers must register as CIS subcontractors or risk a 30 % deduction, while gross payment status helps improve cash flow.
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Contractors need to apply CIS deductions and report payments to HMRC monthly.
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VAT Domestic Reverse Charge considerations also apply.