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Falsely self-employed construction workers cost 2.5bn in tax


20/03/2007

Falsely self-employed construction workers cost 2.5bn in taxWorkers in the construction industry falsely claiming to be self employed are costing the treasury £2.5 billion in tax a year, the Times newspaper reports.

According to construction union Ucatt, 40 per cent of the UK's 2.2 million building workers are incorrectly registered as self-employed, meaning they are not paying enough in national insurance contributions.

Ucatt uphold that anyone working within the construction industry that has regular work that they cannot turn down, has stated hours of work, has to carry out orders and are provided with equipment is not properly self-employed.

Moreover, the union believes that directly employed workers should be used for large construction projects to prevent delays and is calling on the government to avoid using contractors and self-employed workers for work on the Olympics.

Alan Ritchie, general secretary of Ucatt, commented: "No one in Britain should have to pay a penny towards the Olympics. Gordon Brown on Wednesday needs to close this tax loophole.

"Bogus self-employment is the scourge of the industry. It has led to massive skills shortages and continues to deny workers basic employment rights."



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