The new scheme, introduced last year, limited the number of companies who could qualify for a CIS5 certificate – cutting down the amount of administration involved in receiving payments.
Other companies got a CIS6 certificate which meant they had to produce the certificates in person when receiving payments – involving much travelling and hassle.
The pre-Budget announcements include a statement from the Inland Revenue saying that any business with revenue in excess of £1m can qualify for the CIS5, and this is extended to some partnerships.
The move follows discussions by a joint working group set up to try and make the new scheme work.
Alastair Kendrick, tax director at Ernst & Young, said: ‘Why didn’t they consult and get the scheme right before it was introduced? They are correcting something that should have been introduced from the outset and would have saved a lot of aggravation.’
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