Accountants with building clients could face mass confusion next year, as
fears grow that the controversial Construction Industry Scheme’s April 2006
introduction will come too soon for many companies.
The scheme, which makes fundamental changes to the way contractors and
subcontractors deal with tax and NI liabilities, has come under fire for being
too complex and not taking into account the time required for preparation.
Liz Bridge, the Construction Confederation’s director of tax, pulled out of
talks on the scheme with HM Revenue & Customs. She said that if the new HMRC
systems fail when they go live in April, subcontractors could be faced with 30%
emergency tax payments.
ACCA head of tax Chas Roy-Chowdhury has called for the scheme to be delayed
by a further year, and slated HMRC for producing just one CIS information
booklet per practice.
‘We are working hard to ensure we are in a position to introduce the new CIS
from April 2006,’ said an HMRC statement.
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HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
"The whole idea of HMRC officials supplying confidential information about individuals to the media on a non-attributable basis is, or should be, a matter of serious concern," say Supreme Court judges