The report concluded that the administrative cost on all businesses for all taxes each year was £5.1 billion.
For those businesses operating CIS, the cost was £321m.
That is 6% of the total. As the report found, ‘bearing in mind that this only applies to businesses operating in certain sectors, this is a fairly high proportion of the burden’.
The report’s authors could also have said, ‘unfairly high’. The whole cost of administering VAT, across all businesses, only came to £1 billion. Proportionally, the cost of CIS is a massive amount for one industry to bear.