§ 6. Mrs. Shirley Williamsasked the Chancellor of the Exchequer how many taxpayers employed through labour-only sub-contractors in the engineering and building industries are listed as self-employed; and what is the estimated loss to the revenue arising from these taxpayers being listed as self-employed and not as employed persons.
§ Mr. MacDermotI regret that the information is not available. I would add that a new procedure has been introduced to facilitate the taxation of the self-employed in these cases.
§ Mrs. WilliamsI very much welcome my hon. and learned Friend's statement. I am sure that he is aware that this is an attempt to increase the revenue and not to spend it. Is he aware that there is a great increase in the number of self-employed persons in jobs otherwise identical with those of employed persons and that they are, therefore, able to claim expenses under the self-employed system which causes some resentment among those who rate purely as employed persons?
§ Mr. MacDermotYes, we are aware of this fact. The Public Accounts Committee, in its 1961–62 Report, drew attention to the difficulties which the Inland Revenue was having in following up itinerant sub-contractors. It is for this reason that the new procedures have been introduced.
§ Mr. Evelyn KingIs the hon and learned Gentleman aware that the productivity of self-employed persons is usually much higher than that of wage earners?
§ Mr. MacDermotI do not think that that necessarily follows.