HMRC have published a Consultation paper entitled “False Self-Employment in Construction: Taxation of Workers.” The consultation is in relation to future legislation designed to implement the Government’s proposal for ensuring that construction workers engaged in an employment relationship are taxed appropriately. False self-employment has become an issue in the construction industry as it affects the ability of compliant businesses to be competitive as well as affecting workers’ entitlement to social security benefits. It occurs where workers are treated as self-employed for income tax and National Insurance purposes, despite the fact that the way in which the work is carried out on a day to day basis demonstrates that there is an employment relationship.  

The Consultation is open until 12 October 2009 and the full paper can be viewed by clicking on the following link:  

http://www.hm-treasury.gov.uk/d/consult_falseselfemploymentconstruction_200709.pdf.