Contract Journal has teamed up with Grant Thornton to gauge
industry reaction to the Inland Revenue's suggestion that all
labour-only subcontractors should be subject to PAYE and National
Insurance (CJ 7 April).
We want to know your opinion on the matter, following which Grant
Thornton will make representations to the Inland Revenue based on
the results.
Kathryn Hiddleston, tax partner at Grant Thornton, said: "The
Inland Revenue has indicated that representatives of the
construction industry have proposed this change. It seems probable
that the suggestion has come from major contractors, but it will
not be as welcome to the majority of small- to medium-sized
businesses.
"The additional costs of National Insurance, holiday, sickness,
maternity and paternity pay, and the complicated employment
legislation will be frightening for smaller companies."
Paymaster General Dawn Primarolo has asked the Inland Revenue to
discuss the feasibility of this proposal. In order that it can get
a clear idea of the view of the construction industry as a whole,
CJ will be sending out an e-mail survey this week to those
registered on our database.
Alternatively e-mail your answers to the following questions to:
contractjournal@rbi.co.uk.