Construction workers falsely register as self-employed to avoid tax
19-03-2007
Construction workers falsely registered as self-employed are avoiding a cumulative yearly national insurance contribution of £2.5 billion, according to industry union Ucatt.
Ucatt claims that of the UK's 2.2 million building workers, 40 per cent are incorrectly registered as self-employed.
It suggests that any construction workers that are provided with equipment, are answerable to a superior, or have stated hours of work should not be registered as self-employed.
Moreover, the union is calling on the government to avoid using contractors and self-employed workers for work on the Olympics, because it believes that only directly employed workers should be used for large construction projects to prevent delays.
Alan Ritchie, general secretary of Ucatt, commented: "No one in Britain should have to pay a penny towards the Olympics. Gordon Brown on Wednesday needs to close this tax loophole.
"Bogus self-employment is the scourge of the industry. It has led to massive skills shortages and continues to deny workers basic employment rights."
He added: "We should follow the model of Heathrow Terminal 5, which used direct labour, and is on course to be delivered on time and on budget. If the Olympic Delivery Authority (ODA) fails to heed these lessons then taxpayers' money will disappear into a financial black-hole."
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