Construction tax move is blasted; PROPOSAL: Boss says crackdown on self-employed status is 'absurd'.

Byline: Jenny Waddington

A COVENTRY businessman has branded attempts by the Government to drive 350,000 construction workers from selfemployed to employed status to raise millions in tax revenue as "absurd".

Clive Benfield, chairman of the property firm KB Benfield Group, claims the proposed changes will hamper the recovery of the UK's beleaguered construction indust r y.

Mr Benfield said: "The attempt by HMRC to drive 350,000 workers from self-employed to employed status to raise pounds 350 million per annum in tax revenue is rather absurd when the recession has already caused perhaps 200,000 people to leave the industry.

"The proposals will be another body blow to an industry already suffering badly and likely to see rising unemployment. These proposals should be dropped immediately."

A planned crackdown on the Construction Industry Scheme will mean around 350,000 bricklayers, plumbers, carpenters and plasterers working as sub-contractors will effectively lose their selfemployed status in the eyes of the taxman. While the moves are intended to catch out those who it is believed falsely claim to be selfemployed to reduce their tax liability, experts believe the Government has failed to realise the chaos the new rules would create.

Mr Benfield added: "Bogus selfemployment in the construction industry has been the subject of discussion for as long as I can remember.

However, the systems for taxing workers has been tightened over the years and the Construction Industry Scheme is generally operating satisfactorily.

"The industry needs to employ self-employed people for specialist trades and where they may only be required on site occasionally. This is where agency employment comes into its own, as it would be impossible for a worker to constantly change from direct employment with one employer to the next several times in the same week."