§ Dr. CableTo ask the Chancellor of the Exchequer what is(a) the estimated annual revenue charge and (b) the number of firms and employees involved in the change from self-employed sub-contractor status to PAYE status in the construction industry. [62221]
§ Ms HewittThe Inland Revenue estimates that in excess of 200,000 workers in the construction industry have been reclassified from self-employed to employed status since April 1997. This has happened for a number of different reasons. Many contractors have carried out their own status reviews and concluded that some or all of their workers should be properly treated as employees. Alternatively, workers may have been reclassified as employees following an IR or CA compliance visit. No estimate is available of the number of firms involved.
Because of the many differences in how the earnings of self employed and employed workers are treated for tax and National Insurance purposes, it is not possible to provide an estimate of the annual revenue charge involved.