Commentary

74 Sub-contractors deduction scheme

BUILDING AND ENGINEERING vol 5
| Commentary

74 Sub-contractors deduction scheme

| Commentary

74 Sub-contractors deduction scheme

There have been schemes in place since 1972 to counter widespread evasion of income tax and national insurance contributions in the construction industry (for example labour-only sub-contractors working ‘on the lump’)1. From 1999, there was a ‘Construction Industry Scheme’ (CIS) which was based on sub-contractors receiving registration cards or tax certificates. The whole purpose of such legislative schemes was to secure for the Exchequer the payment of taxes by sub-contractors in the construction industry2.

A new CIS came into effect in April 20073. Under the new CIS there is no longer a need for registration cards, certificates

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