Money Matters - Spring 2007

Construction industry scheme changes

A standard deduction rate of 20% for registered subcontractors in the new construction industry scheme was announced in the December 2006 Pre-Budget Report, and will start on 6 April 2007. The increase from the present 18% makes it even more important for subcontractors to get their tax returns completed as early as possible to obtain repayment of any excess tax deducted.