CHEATING AS A BENEFIT

Politics is about taxation, and what the taxes are spent on, the government is warning that it will come down heavily on tax dodgers, the government have been concentrating on what they call benefit cheats, lots of people agree with the government, after all, they are paying taxes, so they must be the ones being cheated. Most workers can't do much about taxation; they see it as a number on the pay slip, not much they can do about it, however, as this article in the summer magazine of the building workers' union shows, there are richer tax dodgers out there, under the pretence that they are "offering freedom and flexibility " not bogus self-employment as the union suggests.

UCATT has written to Lesley Strathie, Chief Executive of HM Revenue & Customs (HMRC), requesting an urgent investigation into the conduct of construction employment agencies who are deliberately avoiding paying millions of pounds in taxation. The union's approach has been made after evidence was collected that in many cases agencies offer two rates for the same job: a higher rate paid for workers on CIS ,,self-employed" terms and a lower rate for those on PAYE. Under the CIS construction industry tax scheme, agencies and gangmasters do not have to pay employer's National Insurance contributions of 12.8 per cent of a worker's earnings. This translates into millions of pounds of lost revenue each year.

The HMRC has clear rules about whether workers should be paid directly or via the CIS tax scheme, such as whether a worker can choose their hours, decline work, disobey orders and set their own prices for work.

Confederation

Meanwhile, the Recruitment and Employment Confederation (REC), the largest trade association for employment agencies, is backing a national campaign to block Treasury plans to stamp out bogus self-employment. The campaign is an alliance of housebuilders and some other construction companies who oppose proposals to "deem" the majority of bogusly self-employed workers to be employees for taxation purposes. Anne Fairweather, REC's Head of Public Policy, commented: "Many people in all sectors of business, in both the public and private sector, want freedom and flexibility offered by self-employment."

Alan Ritchie, General Secretary of UCATT, responded: "The comments by REC demonstrate a blinding ignorance of the construction industry and are deeply worrying. Workers don't freely choose to be bogusly self-employed so that they can be stripped of holiday pay, sick pay and basic employment rights. They have to accept these employment conditions in order to find work and feed their families."