Gordon Brown's pre-budget statement on 8 November should give savings to electrical contractors through vat reductions and changes to the CIS thresholds.
Reduced vat on refurbishments and changes to the Construction Industry Scheme (CIS) tax regime will bring financial gains to contractors.

VAT on converting dwellings into flats was cut to 5% in the November statement. The rate of vat on church repairs was also reduced, from 17·5% to 5%. Churches must meet disability legislation by 2004, prompting upgrade work worth millions.

Capital allowances for the conversion of non-residential properties into dwellings were set at 100%. In addition, an extra £200 million will be given to schools for buildings and repairs. These annual capital grants were said to become a permanent part of school funds.

The ECA warns however that the imposition of vat on repairs may encourage use of "cowboy operatives" by homeowners.

The turnover threshold for CIS5 cardholders has been reduced to £1 million. This move should allow an additional 8000 small contractors to apply for the level, changing from the administration-burdened CIS6.

Source

Electrical and Mechanical Contractor