Consultation on employment status of construction workers
Close date: 12 October 2009
The Government consults on means to address the problem of false self-employment in construction. The Government has launched the consultation because there is evidence to show that false self-employment occurs in the construction industry, where workers are treated as self-employed for income tax and national insurance purposes, even though in practice there is an employment relationship determined by the way in which the work is carried out. The Government proposes that where a business mainly commissions or carries out construction operations and uses the services of a worker for that purpose, the payment in respect of those services will be deemed to be
employment income unless the worker fulfils one of three
criteria set out in the consultation.
Consultation document: False self-employment in construction: taxation of workers (on the HM Treasury website)
Government response: False self-employment in construction: taxation of workers - summary of consultation responses (PDF format, 286K) (on the HM Treasury website)