Today, UCATT estimates over 50% of those working in the industry are falsely self-employed. The CIS Scheme is the main facilitator of false self-employment. It allows companies to deduct tax at source and avoid employing workers directly.
Hmm, OK, tax is deducted at source is it? SDo HMRC definitely gets its cut.
The Murph comments:
No wonder we have a tax gap.
Eh? Tax being deducted at source is a contributor to the tax gap?
This is also good:
UCATT’s report The Great Payroll Scandal estimates that false self-employment is costing the Exchequer £1.9 billion per annum. As well as the impact that this has on individual workers, this is money that needs to be collected to give construction spending a shot in the arm and support jobs and apprentices. This is money that should be used to help rebuild schools, roads and hospitals. That’s why we must stamp this out.
Assume that there is tax being dodged (NI I assume).
Murphy’s conclusion is that the way to revitalise construction is to make it more expensive to employ construction workers.