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Inland Revenue prepares proposals for CIS overhaul

THE INLAND Revenue will submit its proposals for changing the Construction Industry Scheme to paymaster general Dawn Primarolo next week.

The Revenue has been drawing up a summary of responses from its three-month industry consultation to overhaul the scheme, which was only introduced in 1999.The consultation finished last month.

CIS policy head John Hinton said: 'There has been a wide spectrum of views with some saying they can't face too much upheaval, and others saying what we've proposed is a big improvement.'

Ms Primarolo will decide whether the CIS needs to be reformed, and if so by how much.

If she gives the green light for reform, the Revenue is likely to embark on a similar but more detailed consultation on the proposed changes.

Mr Hinton said: 'What happens next is up to the minister.

She has a lot on her plate, so it might take some time.'

Contractors have raised concerns over plans to introduce a new employment status declaration, but proposals to move away from a paper-based scheme to an electronic format had been well received, said Mr Hinton.

The Revenue received several hundred responses from contractors and over 3,000 hits on its website during its consultation period.