New CIS rate increase complicates April transition. By John Stokdyk
An unheralded increase in the deduction rates under the new Construction Industry Scheme from April is likely to add to the difficulties businesses face implementing the new regime, software developers have warned.
Legislation introduced in the aftermath of the chancellor's statement in early December upped the existing standard deduction rate from 18% to 20% [and set a new 30% deduction rate for unregistered subcontractors].
On behalf of Sage, Kevin Hart referred to the change as "a nice little pre-Christmas bombshell" that was not well received by industry.