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09Aug91 UK: SUBCONTRACTORS CRITICISE GOVERNMENT OVER 714 TAX DEDUCTION SYSTEM SHAKE UP.

Leaders of the subcontracting industry have blasted Government plans to shake up the 714 tax deduction system.The Confederation of Construction Specialists has attacked planned changes as 'a further attempt to breathe life into a misconceived and doomed scheme.'The stinging rebuke came in an official reply to an Inland Revenue consultation document last week.The CCS says revenue plans will lead to an administrative nightmare for its member companies.Proposed changes include introducing a £25,000 turnover minimum for subcontractors before they can hold 714 tax exemption certificates. Around 525,000 subcontractors would have to give up their 714s and face tax deductions at source.The CCS says: 'Specialist companies, over the turnover limit, would continue to be subject to tax deduction certificates and would also have the extra administrative burden of deducting and accounting for the statutory deduction from all payments made by them to smaller secondary subcontractors.'