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DHTiling
The Recruitment & Employment Confederation (REC) joins
campaign to halt Government proposals to hike taxes for
self-employed construction workers
The Recruitment and Employment Confederation (REC), the professional body dedicated to
representing the entire recruitment industry has joined the Stop the Unfair Building Tax campaign
(Subtax), which is calling for current Government proposals to tackle alleged false-employment in
the construction sector to be reconsidered.
Subtax believes that the Government is proposing inadequately thought through, catch-all
legislation that will be difficult to implement. Yet the consequences of these proposed measures
would add to the already major regulatory burden on the industry and inhibit both recovery and
jobs.
By deeming that all those working in construction should be subject to PAYE rather than selfemployed
tax rules unless they meet one of three over-restrictive exemptions, the proposed
legislation will introduce additional costs and red-tape for the construction industry, reduce the
income and living standards of hundreds of thousands of workers, incentivise blackmarket activity
and actually increase the costs of central Government administration. Overall, the proposals would
neither deliver the benefits the Government claims nor assist the construction sector in its long
journey back from the current severe recession.
What are you thought on this proposal fromthe goverment, how this this affect your business.?
Some video's from contractors etc can be viewed on the Sub-tax website How YOU are affected | Sub-tax.com
What is the Government proposing?
There are around 800,000 self-employed builders and over 100,000 building firms in the UK. The
Government argue that at least 300,000 of these builders are falsely self‐employed. They believe
that these builders enjoy beneficial tax rates without any of the risks of self employment.
They also claim that if every one of these 300,000 falsely self employed builders paid standard tax
under PAYE and NICs the Treasury would be £350m better off each year.
The Government wants to introduce new legislation to address the perceived problem. Their
proposals would “deem” a worker to be “employed for tax purposes” unless they meet one or more
of three strict criteria, namely: purchasing and supplying all materials for the work; supplying
additional workers; and supplying all necessary plant and equipment. The workers “deemed” to be
employed in this way would be subject to standard PAYE and NIC taxation, but they would still be
regarded as self-employed when it comes to employment rights. These proposals would supersede
general employment case‐law and treat the construction industry differently from any other sector
Will this affect sub-contractors to these builders..?
What are the Government's proposals?
What are the Government's proposals? | Sub-tax.com