Feared CIS scheme delayed
Mounting concerns lead to Construction Industry Scheme's delay
The much-feared new Construction Industry Scheme, which was set to come into
effect from April 2006, has been put back by 12 months.
The introduction of the changes to the way contractors and subcontractors
deal with tax and NI liabilities had been slammed by the construction, software
and accounting industries as being liable to lead to chaos, and a huge numbers
of job losses.
But the fears have been abated following an announcement in the House of
Commons by financial secretary to the Treasury, John Healey, that the scheme
would be delayed.
Wilder Coe employment tax services partner Alastair Kendrick said that the
delay gave time for accountants and their clients to prepare for the changes.