Potential Changes for Self Employed Construction Workers!

publication date: Sep 14, 2009
 | 
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
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If you are a self employed plumber, carpenter or general builder that regularly works for contractors, beware, the HMRC are thinking of taking a very bizarre step of reclassifying self-employed construction workers as employed. There is a consultation process 'False self-employment in construction: taxation of workers'.

HMRC are considering taking this action as they believe that a significant number of construction workers are taxed as if self-employed even though they are providing their services to contractors, effectively acting as if they were employees. As far as HMRC are concerned, this means that the contractor is using workers under “false self-employment”.

If it goes ahead, legislation will be introduced to protect income tax and national insurance revenue that they feel is being lost and workers will be reclassified and taxed through the PAYE system regardless of the length or brevity of each employment assignment.

Don’t want this to happen?
Then make sure you read the consultation document HMRC have published and send your comments to HMRC before the 12th October 2009.

And be warned, this is probably not the last of the changes, and likely to be just the start of the government finding ways to pay off some of that massive debt we have to pay off!

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