Primarolo announces drop in construction industry tax deductions
Building industry subcontractors are to benefit from a drop in payments under the construction industry scheme from 23% to 18%.
Building industry subcontractors are to benefit from a drop in payments under the construction industry scheme from 23% to 18%.
This means subcontractors without gross payment certificates will have substantially less tax deducted from payments made to them during the 2000-2001 tax year, which they would otherwise have to reclaim from the Inland Revenue.
The new rate, announced today by the Paymaster General, Dawn Primarolo will apply to all relevant payments from 6 April 2000.
The Minister has also told industry representatives that she is taking very seriously the representations that they have made to her and the Inland Revenue about the administrative burden that they believe the new scheme imposes upon them.
She has asked the Inland Revenue to consider realistic ways of addressing these concerns.
The rate is a flat rate, which is applied to the net payment after the deduction of materials. The flat rate therefore needs to take account of personal allowances and the lower rate band.
There are currently over 500,000 subcontracting businesses working within the industry that will be paid after deduction of tax and most will reclaim a repayment of tax as soon as their liability for the year is exceeded by the deductions made.
According to the Revenue, the reduced rate of 18% will be closer to the final liability that subcontractors are due to pay and will therefore allow them to keep more of the payments made to them throughout the year.
The numbers you crunch tell a story. Your expertis...
24yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleHMRC sees the profit or loss made on buying and selling of exchange tokens as within the charge to Capital Gains Tax (CGT). Read More...
View articleThe recent IR35 case involving former Liverpool footballer and Sky Sports presenter, Phil Thompson, has drawn attention to the complexities and implic...
View articleFrom January 1, 2024, HMRC will implement new tax rules affecting individuals who sell items on platforms like Etsy, Depop, and Vinted. The new regula...
View articleHMRC reveal a small majority of people are soldiering a significant proportion of income and capital gains tax, following FOI request. Data has reigni...
View articleSteven Pinhey, technical officer at the Association of Taxation Technicians (ATT), considers how the rules on deductible expenses work in a social med...
View articleATT technical officer, David Wright, considers the implications of HMRC’s decision to remove employees with income between £100,000 and £150,000 from ...
View articleThis was the fourth largest borrowing year since records began in 1993 Read More...
View articleATT technical officer, David Wright, provides an overview of the welcome relaxation to CGT provisions for separating couples looking to transfer asset...
View article