Budget 05: Construction industry awaits tax decision

The government is still discussing what is to happen over the tax status of workers in the construction industry.

Statements in the Budget this week indicate that the debate hinges on whether workers can be defined as employed or self employed.

The delay in resolving the issue will be a disappointment to the construction industry, which is expected to apply the revised arrangements from April 2006.

Alastair Kendrick of Ernst & Young says he is ‘disappointed’ that the position remains unresolved and said a quick resolution is urgently needed.

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