A flood of appeals by contractors working under the modified Construction Industry Scheme could swamp the Inland Revenue as a result of the Human Rights Act coming into force in the UK.
The Construction Federation believes there are at least 60,000 subcontractors who are not happy with the tax certificates they have been issued under CIS.
So far no appeals have been permitted but article 6 of the Human Rights Act may force the Revenue to open appeals.
Liz Bridge, director of tax at the Confederation, said: ‘I think appeals are possible under current law but when the Human Rights Act has come into force I think the courts will support appeals.’
Under CIS subcontractors are issued one of three certificates which must be presented in order to get paid. Those issued with certificate CIS6 have complained that it is inconvenient because it has to be presented in person and includes a photograph.
Holders want to appeal to obtain one of the other certificates available.
CIS is currently under review but a Revenue spokesman said it would only implement ‘fine tuning’ and would not address fundamental issues that could allow appeals.
Sources say changes could be in place before Christmas.
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