False Self-Employment in the Construction Industry

The government has been looking at the best way to address the issue of what they believe is 'false self-employment' in the construction industry. They have concluded, for income tax and national insurance purposes, that they will introduce legislation which deems workers within the construction industry to be in receipt of employment income unless one of three simple, clear and easy to apply criteria is met.

These criteria take the form of three questions which ask whether the worker provides:

• their own equipment (other than customary to the trade)
• their own materials
• additional workers to complete the job

The worker will have to satisfy at least one of these criteria to be regarded as self-employed.

The government are consulting on this issue at the moment and we will keep you informed of developments.

If you would like to find out more or have any questions, we will be delighted to offer any help or advice.

Please contact Peter Hogan at Darlington, Nicola Bellerby at Durham or Terry Doyle at York.

Internet links:

Consultation on Construction Self Employment Tests

Treasury Statement