HM Revenue and Customs have published a consultation document yesterday called 'False Self-employment in Construction”. It proposes deeming workers within the construction industry to be in receipt of employment income for tax and NICs purposes unless at least one of the following criteria are met:
- provision of plant and equipment – that a person provides the plant and equipment required for the job they have been engaged to carry out. This will exclude the tools of the trade which it is normal and traditional in the industry for individuals to provide for themselves to do their job;
- provision of all materials – that a person provides all materials required to complete a job; or
- provision of other workers – that a person provides other workers to carry out operations under the contract and is responsible for paying them.