Threat to Sub-contract Labour

by Steve on March 31, 2010


Who Should be Self-Employed?

The government have again set out criteria to define those who are self employed.

A sub-contractor in the building industry (including electrical sub-contract electricians) will now need to prove that:
• They supply all their own materials
• They supply substantial amount of equipment for their job
• They employ others

Those not fulfilling these criteria will be deemed to be not eligible for sub-contract status and will have to pay PAYE tax.

This will of course also affect those companies which use sub-contract labour and force them to employ a PAYE workforce.

The government claim that they are at loss of 350 million pounds  because of false unemployment.

Opponents of this latest clampdown on the building industry say that the move would just drive workers onto the black economy, which would impact on reputable building companies and be an extra cost to the government.

They would also make the provision of labour for building contractors much more difficult by curbing the flexibility normally required for short term projects.

The changes would involve increases in national insurance and rates of taxation for both contractors and sub-contractors.

Does this affect you or your company?
Find out how to pay Sub-Contractors legally- visit  Paying Sub-Contractors.

To sign the petition- visit

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