NFB attacks Revenue's CIS plans

The Inland Revenue’s (IR) planned blitz on bogus self-employment fails to recognise the growing need for a flexible, specialist workforce, according to the National Federation of Builders (NFB).

The IR is set to query 13,000 contractors over their classifying of workers as self-employed in a crack-down announced last week. However, the NFB argues that genuinely self-employed specialist labour is critical for contractors to maintain flexibility.

NFB chief executive Barry Stephens said: “We are completely opposed to bogus self-employment and the practice of intentionally misclassifying labour.

“But the majority of bona fide firms do not have the luxury of being able to long-term plan and require specialist skills on a flexible basis. It is not uncommon for a contractor to be pricing jobs worth up to 25% of its turnover at any one time.

“This is not a tax-avoidance issue and it doesn’t automatically mean these firms are behaving unscrupulously, which is what the IR seems to be suggesting. There are clear benefits in having a workforce of primarily directly-employed staff, but where is the logic in recruiting permanent specialist skills that are not required all of the time?"

He added: “It is crucial that contractors continue to have the flexibility of labour only sub-contractor (LOSC) resource without being exposed to threats of financial penalties.”

The NFB also said the reason why the IR has struggled to effectively police the matter was down to the current inadequate definition of self-employed status and the differing definitions applied by government agencies.

Stephens concluded: “We have to question the motivation of this blitz. Is this simply a display of force or is the IR actually looking to make a real contribution to resolving the present confusion?”