KENT businesses in the construction industry are being advised to attend a free seminar following a government announcement which could mean bigger tax bills for companies in the sector.

The session - being held on Tuesday, February 6 at the Marriott Tudor Park Hotel, Maidstone, aims to reveal what is being billed as a "potentially nasty surprise" for any of the county’s construction businesses that use sub-contractors.

It is being conducted jointly by DSH chartered accountants and business advisors and Gullands solicitors.

Steve Carpenter, tax manager at DSH, said: "The Chancellor’s Pre-Budget Report in December finally confirmed that new Construction Industry Scheme rules will be implemented from April 6, 2007.

"One potentially nasty surprise seems to have passed many people in the industry by: there is to be an increase in the standard rate of income tax deduction to be applied."

The change means that from April 6, unless a sub-contractor is eligible for gross payment or is subject to the higher rate deduction, income tax at a new rate of 20 per cent, up from the current 18 per cent, must be deducted from all payments made.

The seminar, which starts at 4.30pm will discuss the implications of the new scheme.

To reserve a place or to find out more about the new rules, contact DSH on 01622 213808 or e-mail: events@dsh.co.uk.