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Fake self employed workers face crackdown

Construction workers who falsely claim to be 'self employed' are facing a crackdown by the taxman.

Documents in the budget show the Government plans to consult on new legislation to stamp out the practice of bogus self employment,

Her Majesty's Revenues and Customs believes many people form companies to be “self-employed” when they are really employed. It means both the company and individual can avoid tax and national insurance contributions.

The Budget documents say: “The Government remains committed to addressing false self-employment in the construction industry.

“The Government will consult with a view to future legislation to ensure that construction workers and those they work for are taxed appropriately. The Government will work with the construction industry to ensure that any legislation is effectively targeted and the industry retains a flexible labour supply.”