“Britain has been dubbed the self-employment capital of western Europe with 4.5 million classed as self-employed, accounting for more than 15% of the labour force.
Many people working in construction are genuinely self-employed, however, UKCG (UK Contractors’ Group) recognises that some are not ‘false self-employment’ and that, under current tax rules, it is extremely difficult for law abiding companies to decide whether somebody is really self employed or should be taxed within PAYE. It is estimated that false self-employment is costing the Exchequer £1.9 billion per annum.
“Since April 2014, the government has introduced new legislative rules to clamp down on false self-employment. Recruitment agencies are now required to ensure all workers supplied to a business, and who no longer pass HMRC’s test for being self-employed, are treated as full employees, and added to payroll appropriately.