§ Mr. CohenTo ask the Chancellor of the Exchequer what action(a) he is taking and (b) he plans to take to prevent bogus claims of self-employment, with particular reference to the construction industry; and what estimate he has made of the loss of revenue as a result of such claims. [116509]
§ Dawn PrimaroloWhether an individual is employed or self-employed depends upon the terms of the contract under which they are engaged. This is true for all industries including the construction industry.
The Inland Revenue is, however, aware that workers in the construction industry in particular have been incorrectly categorised in the past. Following consultation with the industry, the Revenue increased its compliance activity in this area to ensure that there was a consistency of treatment across the industry. The Revenue continues to police the status of workers in all areas including those in construction to ensure that the rules are properly understood.
The Inland Revenue has no information that can accurately provide an estimate of revenue, which may have been lost in cases where the contract has not been categorised correctly.