Business Tax: False self-employment

Business Tax: False self-employment

Critics of proposed legislation to address false self-employment in the construction industry have failed to persuade the Government not to pursue a limited deeming test to determine employment status.

The Government has proposed that workers will be deemed to be employees unless they meet one of three criteria relating to the provision of plant and equipment other workers or materials. It has estimated at 300 000 the number of workers in an employment relationship who are being presented as self-employed. 'Many of those who responded to the consultation welcomed Government action to tackle non-compliance in this area. However the overwhelming view was that the proposals would not achieve the aims set down in the consultation ' the Treasury's summary of responses said. More work will be done to 'refine and develop' the deeming test.

'We are pleased to note that change will...