The ECA has warned the government that members will suffer because of the April 2006 launch of the electronic version of the Construction Industry Scheme (CIS).

In a letter to John Healey, HM Treasury financial secretary, ECA director David Pollock said that more time was needed for operational software to be manufactured and installed and to allow staff to be trained to use it. Calling for better scheme information, Pollock suggested a phased introduction of the new scheme starting on the planned date.

“HMRC is exerting pressure on the industry to comply with CIS but it is not allowing enough time for the new scheme to be introduced properly,” said Pollock. “We believe that if the start date is maintained, there will be problems resulting in late payments to our members, putting cash flow under significant pressure, particularly for the smaller and medium-sized companies.”

Source

Electrical and Mechanical Contractor