Which of the following is NOT considered a direct consequence of the Construction Industry Scheme?

The correct answer, indicating that access to government grants is not considered a direct consequence of the Construction Industry Scheme (CIS), stems from an understanding of the purpose and implications of the CIS.

The Construction Industry Scheme is primarily designed to manage tax compliance within the construction industry, providing a structured method for tax deductions at source. As a result, one of its direct consequences includes the obligation for contractors to deduct taxes from payments made to subcontractors, which helps ensure that taxes owed are collected more effectively.

Moreover, participating in the scheme often leads to an increased administrative burden for contractors, as they must maintain accurate records and comply with reporting requirements. This increases workload and necessitates diligent bookkeeping practices to meet the HMRC guidelines.

The scheme is also known for reducing tax compliance costs over time, as businesses may experience streamlined processes for managing their tax responsibilities in this highly regulated environment.

In contrast, access to government grants is not a direct feature or outcome of the CIS. While government funding opportunities and grants can exist separately to support the construction industry, these are not inherently tied to the administrative or compliance aspects of the CIS. Thus, it stands apart from the direct tax implications and responsibilities established by the scheme.