FIRMS have been told not use Tipp-Ex on their tax returns to avoid scuppering HM Customs & Revenue's new electronic CIS tax system next April.
The problem emerged during trials of the new system, which started in April with selected contractors. The f luid causes problems for the Revenue's scanning equipment.
Construction confederation tax expert Liz Bridge said: 'We are advising people to cross out mistakes instead because the documents have to be scanned.' She said the Revenue might have to input some tax returns by hand.
A Revenue spokesman said: 'We can scan returns with Tipp-Ex but would prefer people not to use correction f luid on the forms as we have found that too much causes the paper to stick together. There is also a wider issue of authenticity, as returns could be doctored.'