Latest:
Industry body quits talks on tax scheme
11:37 07 Sep 2005
|
The Joint Taxation Committee (JTC) has resigned from talks with HM Revenue and Customs (HMRC) in protest at its insistence on bringing in the new Construction Industry Scheme (CIS) in April 2006.
Liz Bridge, the Construction Confederation’s director of tax, and the industry leader on the JTC’s negotiations, confirmed that it had pulled out of talks during a meeting last week.
“The JTC will not be taking part in the negotiations, and we do not want the Revenue to put out any statements saying this new scheme has been agreed by the industry,” she told CJ.
“As far as we are concerned, if the Revenue insists on going for 6 April [when the new CIS comes into effect], it goes on its own.”
Under current circumstances, Bridge said she saw little chance of the JTC returning to negotiations.
However, some industry representatives remain, including the Electrical Contractors Association. Its spokesman said it felt it was better to be in the discussions, even though it had qualms about it.
The JTC’s withdrawal from talks follows several months of discussion, during which it repeatedly asked HMRC to delay the CIS start date, amid fears of industry chaos. At the meeting, software houses said they would be unlikely to have any new CIS products ready until January, leaving very limited time to buy, install and become familiar with the system, Bridge said.
Software houses have yet to solve several outstanding issues with HMRC, and are still in talks about tackling potential problems. These include key concerns such as solving errors and the
fact that HMRC said it will accept only one trading name for a company.
“We are doing our best to co-operate,” said Dennis Keeling, chief executive of the Business Application Software Developers Association. However, he said that his members were worried about several issues, particularly how firms using the CIS system would solve any errors.
Liz Bridge, the Construction Confederation’s director of tax, and the industry leader on the JTC’s negotiations, confirmed that it had pulled out of talks during a meeting last week.
“The JTC will not be taking part in the negotiations, and we do not want the Revenue to put out any statements saying this new scheme has been agreed by the industry,” she told CJ.
“As far as we are concerned, if the Revenue insists on going for 6 April [when the new CIS comes into effect], it goes on its own.”
Under current circumstances, Bridge said she saw little chance of the JTC returning to negotiations.
ADVERTISEMENT
However, some industry representatives remain, including the Electrical Contractors Association. Its spokesman said it felt it was better to be in the discussions, even though it had qualms about it.
The JTC’s withdrawal from talks follows several months of discussion, during which it repeatedly asked HMRC to delay the CIS start date, amid fears of industry chaos. At the meeting, software houses said they would be unlikely to have any new CIS products ready until January, leaving very limited time to buy, install and become familiar with the system, Bridge said.
Software houses have yet to solve several outstanding issues with HMRC, and are still in talks about tackling potential problems. These include key concerns such as solving errors and the
fact that HMRC said it will accept only one trading name for a company.
“We are doing our best to co-operate,” said Dennis Keeling, chief executive of the Business Application Software Developers Association. However, he said that his members were worried about several issues, particularly how firms using the CIS system would solve any errors.
ADVERTISEMENT
Most Viewed Articles
ADVERTISEMENT