The HM Treasury proposal that could lead to hundreds of thousands of self-employed construction workers being forced onto PAYE. Julian Smith, Nigel Adams and Jason McCartney were among MPs hosting a meeting at Westminster with UK business leaders. The trio had asked to be notified of any legislation or proposed legislation that would inhibit growth or act as a further burden to business.
David Jackson, managing director of CIS payroll provider Hudson Contract, drew their attention to HM Treasury proposals that – if passed – would force most of the country’s freelance builders to be taxed as though they were employees. The proposals were first mooted in 2009 and are still under consideration.
“I am able to reflect the position of over 85,000 freelance builders and 1,500 construction firms,” said Jackson. “I was therefore able to explain why the proposals have been condemned by the vast majority of building firms – roughly 85% – along with over half a million labour-only subbies.
“In a nutshell, the proposals would drive up construction costs and reduce capacity in the sector, and prolong the recession for those of us in construction.
“By the same token, black market activity would increase as a result of the fundamental right to self-employment that is enjoyed by workers in every other sector being taken away from those who prefer work for themselves.”
The MPs are now studying briefing notes and background information, including a paper from Cranfield University economics Professor Andrew Burke The economic role of freelance workers in the construction industry.
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