CIS Tax status legislation delayed

The treasury had previously outlined plans for ensuring that "CIS workers engaged in an employment relationship are taxed appropriately." A consultation document was released and comments were requested by 12 October 2009.

The proposed legislation would have lead to many 'labour only' construction workers, and particularly those working through recruitment agencies, having to become employed for tax purposes.

Simon Noakes, from the REC Construction sector group's executive was "delighted with the delay". He further added.

"The REC recognises that some construction workers maybe falsely claiming that they are self employed. However construction is an industry where workers trade on their skills and often move from project to project."

"The proposed changes would have simply added more cost onto construction jobs at a time when the industry can least afford it. We are pleased that the Treasury is taking a pragmatic approach to this issue and we will continue to work with them to ensure that genuinely self employed construction workers can remain so."

Of the feedback received by the Government, many in the industry felt that the proposed changes were being implemented far too quickly, particularly given the severity of the recession and forthcoming Olympics.

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