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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