The Government announced proposals in the 2009 Budget to address false self-employment in the construction industry. Its aim is to introduce legislation to ensure that in many circumstances workers will be taxed as if they were in an employment relationship.
As part of this process the Government and HM Revenue & Customs have released a consultation document "False self-employment in construction: taxation of workers" setting out the proposed changes.
Introducing legislation under which a payment received by a worker in respect of "construction operations" will be deemed employment income unless at least one of three proposed criteria is met.
a) The provision of plant and equipment – excluding tools of the trade normally and traditionally used in the industry that individuals provide for themselves, or
b) The provision of all materials – where a person provides all materials required to complete a job; or
c) The provision of other workers – where a person provides other workers to carry out operations under the contract and is responsible for paying them.
An overview of our commentary
For further information on the proposals please contact Teresa Payne on 020 7893 2012 or email email@example.com