HM Treasury announced yet another consultation this week, “False self-employment in construction: taxation of workers”. No doubt that reams of technical analysis will be produced but the bottom line seems to be that HMT think people are getting tax advantages by claiming to be self-employed when (in their view) it is clear the worker is employed (in terms of what actually happens).
So it’s the turn of the already beleagured Construction Industry to cope with this and interestingly the consultation period ends in October. I suspect consultation had to be published but that ministers know it won’t be a popular change.
So the recently revised Construction Industry Scheme (CIS) looks under further scrutiny and the estimated (by HMT) 300,000 workers will be under the microscope via the providers of payroll/tax “solutions” to this industry. Doesn’t effect Parasol at all but could have implication for providers that provide CIS or sole trader solutions.
Is it right? Until UK Gov creates a true definition of the class of workers in the whole of the temporary space (and get’s EU on side) then “abuse” and short cuts will always happen. Level playing fields need to be created but with one of the oldest and most complex tax systems in place, it won’t happen anytime soon. Is it also a product of the need to increase tax take given our recent economic issues? Probably all three.
Shout if you’re in the Construction Industry and have a view.
by Rob Crossland
Another week, another consultation
July 24, 2009 in Contractor News, Industry comment, Recruiter News, Tax
HM Treasury announced yet another consultation this week, “False self-employment in construction: taxation of workers”. No doubt that reams of technical analysis will be produced but the bottom line seems to be that HMT think people are getting tax advantages by claiming to be self-employed when (in their view) it is clear the worker is employed (in terms of what actually happens).
So it’s the turn of the already beleagured Construction Industry to cope with this and interestingly the consultation period ends in October. I suspect consultation had to be published but that ministers know it won’t be a popular change.
So the recently revised Construction Industry Scheme (CIS) looks under further scrutiny and the estimated (by HMT) 300,000 workers will be under the microscope via the providers of payroll/tax “solutions” to this industry. Doesn’t effect Parasol at all but could have implication for providers that provide CIS or sole trader solutions.
Is it right? Until UK Gov creates a true definition of the class of workers in the whole of the temporary space (and get’s EU on side) then “abuse” and short cuts will always happen. Level playing fields need to be created but with one of the oldest and most complex tax systems in place, it won’t happen anytime soon. Is it also a product of the need to increase tax take given our recent economic issues? Probably all three.
Shout if you’re in the Construction Industry and have a view.
Tags: CIS, contractors, Government No Comments »