Construction workers will be targeted by the taxman in a bid to crackdown on bogus self employment.
In a review of its tax scheme, the Inland Revenue will write letters to taxpayers suggesting that they may have wrongly classified ’employees’ as ‘self employed workers’ or been mis-classified themselves.
Martin Johnson, tax partner at our Sunderland office, said:
“This is worrying as businesses could find that they owe a fortune in unpaid tax, national insurance, interest and penalties. Anyone who gets the letter should seek advice as quickly as possible to avoid hefty fines”.
Letters will be written to 57, 000 taxpayers in the industry to ensure that all contractors are meeting employment status responsibilities.
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