MPs To Review Threat To Freelance Status

AN HM Treasury proposal that could lead to hundreds of thousands of self-employed construction workers being forced onto PAYE is to be reviewed by Government MPs.

share this page

Julian Smith, Nigel Adams and Jason McCartney – who are all celebrating the first anniversary of their election to Parliament – were among MPs hosting a meeting at Westminster with UK business leaders. The trio had asked to be notified of any legislation or proposed legislation that would inhibit growth or act as a further burden to business.

David Jackson, Managing Director of Hudson Contract, construction’s largest CIS payroll provider, drew their attention to HM Treasury proposals that – if passed – would force most of the country’s freelance builders to be taxed as though they were employees. The proposals were first mooted in 2009 and are still under consideration.

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

“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.

“By the same token, black market activity would increase as a result of the fundamental right to self-employment that is enjoyed by workers in every other sector being taken away from those who prefer work for themselves.”

The MPs agreed the proposals under review amount to anti-growth measures and are now studying briefing notes and background information, including a paper from Cranfield University Economics Professor Andrew Burke: The economic role of freelance workers in the construction industry.