Treasury tackles false self-employment in construction industry
THE Treasury has announced consultation on proposals for new legislation which could affect thousands of construction workers across Huntingdonshire, and save the Treasury millions of pounds of lost revenue. The proposals are aimed at combating false self
THE Treasury has announced consultation on proposals for new legislation which could affect thousands of construction workers across Huntingdonshire, and save the Treasury millions of pounds of lost revenue.
The proposals are aimed at combating false self-employment in the construction industry, by introducing a statutory definition of "deemed employment" for construction workers.
HM Revenue and Customs estimates that there may be around 300,000 site workers registered as self-employed, when they should be employees. This can save money for contractors and workers in tax and national insurance contributions.
It is estimated that this loss of income for the Treasury amounts to �350 million.
You may also want to watch:
Under the proposals, construction workers would be deemed to be employees - and not self-employed - unless they can demonstrate one or more of the following: they provide the plant and equipment required for the job (excluding tools of the trade); they provide all materials required to complete a job; or they provide other workers to carry out operations under the contract and are responsible for paying them.
Nick Edgley, tax managers at Ensors Chartered Accountants in Huntingdon, said: "The criteria would be applied to the work done for the person whose main business consists of carrying out or commissioning 'construction operations' as defined in the CIS regulations.
- 1 Matt Hancock at Hinchingbrooke Hospital today
- 2 Man jailed for sexual relationship with schoolgirl
- 3 Check out some of Huntingdonshire's fascinating history
- 4 New trophies to celebrate achievement at St Neots school
- 5 Man dies following collision near Bluntisham
- 6 Vaccine centre closure date announced amid 60,000 doses target
- 7 Landmark A14 viaduct demolition is captured on camera
- 8 A fund has been set up in memory of Nathan Cowell
- 9 Body discovered in Hartford believed to be missing Nathan
- 10 Interactive map shows Covid Indian variant cases in Huntingdonshire
"They will have to ensure that they have sufficient information to apply the criteria; if they don't, then the default position will be that the payment is employment income and normal PAYE and NIC rules will apply."
The Treasury consultations will close on 12 October, with a final decision expected early next year.
INFORMATION: For further details on the proposals, visit www.hm-treasury.gov.uk/consult_false_selfemployment_construction.htm.