HMRC recently announced that the practice of making a deduction from the gross amount of payment to a CIS contractor in respect of the CITB levy was not authorised in legislation and so, from 6th April 2014, would not be allowed.
Following representations from the construction industry HMRC has now made a U-Turn on this decision, issuing a statement that gross deduction for items which are contractually agreed can continue to be allowed.
This is one positive for the construction industry which has struggled during recent times of recession and is faced with a dramatic cost increase in the form of the proposed implementation of legislation to tackle false self-employment.
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