HM Revenue && Customs’ (HMRC) new construction industry scheme has been delayed until April 2007 after widespread industry fears that it could create chaos because of untested software. Under the new scheme contractors will have to verify the tax subcontractors should be paying using HMRC’s new system. If a subcontractor cannot be found on the system a higher tax rate must be paid. Duncan Canney, finance director at Willmott Dixon, said: "We knew HMRC had a deadline but we knew it was likely to be unachievable because the software was not ready. It is a very sensible decision to delay its introduction by a year until the beginning of the new tax year."