Tax man launches new attack on self-employed

HatterScaff

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From the Construction Enquirer :

Tax officials have confirmed they will be tackling the issue of false self-employment as part of a major crackdown on labour agencies.

HM Revenue & Customs announced last month that it would be appointing 100 extra inspectors to find agencies believed to be dodging £500m in tax payments.

Now the Revenue has confirmed it will be examining the tax status of workers as part of the campaign.

The news will stun employment agency chiefs who were hoping the spotlight had shifted from employment status as the Government encouraged a flexible workforce in the current economic climate.

But union chiefs were delighted the net will be widened to include the problem of agencies wrongly applying employment status laws in order to avoid paying employers National Insurance contributions and other benefits such as holiday pay.

George Guy Acting General Secretary of Ucatt, said: “The confirmation that the HMRC is cracking down on false self-employment being undertaken by employment agencies is welcome news.

“False self-employment is endemic in agencies operating in construction and is costing the taxpayer millions of pounds every year in lost revenue.

“Employment agencies must realise that they can no longer get away with falsely self-employing workers and denying them the most basic employment rights.”

Kevin Green, Chief Executive of the Recruitment and Employment Confederation, said: “We are committed to working effectively with the Government to address examples of bogus self-employment.

“However, it is also critical for the UK economy that we promote legitimate self-employment.

“If we want to retain a dynamic construction industry in the UK we need to retain its use of a skilled and flexible workforce.

“Payroll companies help the self employed particularly with the administration of pay. Together with the review of iR35, we urge the Government to look into this whole area as part of their commitment to help small businesses and entrepreneurs.”




:( How many times have we heard this, Taxman clamps down on ..., Yet it still goes on, Hudson's must be crapping themselves:laugh:
 
100 extra inspectors checking out workers - how about putting 100 extra inspectors checking out people that arent working . makes my blood boil
 
It should be welcomed, It's not an investigation of the worker, it's an investigation into the agencies that exploit the worker by not paying holiday pay, employers NIC and other benefits and denying all employment rights as well as cheating the revenue out of hundred's of millions each year.
 
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