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Tax chaos fears over CIS roll out

An industry tax body has hit out at the Inland Revenue amid fears that the rollout of the new Construction Industry Scheme in April 2006 will descend into chaos.
The Joint Taxation Committee of the Construction Industry said it is appalled by the decision to press ahead with the plans which will cause chaos and extra expense for contractors.

The JTC wanted the Inland Revenue and Government ministers to delay the introduction of the new electronic scheme until essential trials and tests had proved the new processes and software were robust.

The Inland Revenue has decided to stick with the launch date of April 2006.

Construction Confederation director of tax Liz Bridge, said: 'Despite repeated warnings that there is not enough preparation time, the Revenue and the government have decided to just carry on regardless.

'Their failure to delay the start of the scheme will create commercial chaos for our industry - as well as significantly increase the costs of the change for contractors as they try to wade through the chaos.

'It is essential that all the software and paperwork necessary to run the new scheme is in place well before any start date; this clearly is not going to happen and the consequences - including the possibility of a computerised disaster in the payment process for construction - are too awful to contemplate.'