Threat to freelance builder status to be reviewed by MPs

Date: 18th May 2011

Self-employed Britons working in the construction sector could be among those encouraged by a recent announcement from a group of MPs.

Yorkshire parliamentarians have agreed to investigate HM Treasury proposals that could lead to a large number of self-employed construction workers being forced onto PAYE.

The likelihood of self-employed workers being taxed as though they were employees was brought to the attention of MPs by David Jackson, managing director of Hudson Contract, the UK's leading construction CIS payroll provider.

"I am able to reflect the position of over 85,000 freelance builders and 1,500 construction firms. I was therefore able to explain why the proposals have been condemned by the vast majority of building firms – roughly 85 per cent – along with over half a million labour-only subbies," the expert commented.

"In a nutshell, the proposals would drive up construction costs and reduce capacity in the sector and prolong the recession for those of us in construction."

The expert also claimed that at the same time black market activity would increase.

Posted by Thomas Fletcher