Construction industry unprepared for tax shake-up

The construction industry is unprepared for the introduction of radical revisions to the ‘Construction Industry Scheme’ (CIS) tax system, according to KPMG.

The new scheme, governs the way in which sub-contractors are paid and is due to come into force in April this year.

KPMG surveyed 465 construction industry professionals across the UK during the last quarter of 2006 as part of a series of lectures on the new scheme’s operational requirements.

The survey found that almost seven out of ten respondents had concerns about operating the new scheme and nearly 60% said the new scheme would be harder than the old scheme for their business to operate.

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