Taxing times ahead for construction subbies as the Government consults on proposed new "self-employment" rules for the construction industry

The Government is currently consulting on new rules which could result in construction workers being deemed to be employed rather than self employed.

The consultation carried out by the Treasury proposes new rules to determine construction industry employment status and ensure that workers are taxed appropriately. The changes are designed to remove what the Government regards as false self employment, where workers are treated as self-employed when the facts indicate an employment relationship exists.

The consultation document proposes that construction workers will be deemed to be employed unless at least one of the following criteria is met. The worker engaged to carry out the work must provide:

• the plant and equipment required for the job excluding normal trade tools;
• all materials required to complete the job they are engaged to carry out or;
• other workers to carry out work with responsibility for paying them.

If none of these conditions apply the worker will have to be regarded as employed. The consultation closes on 12 October 2009.