Workers slam self employment tax system

Self employed workers are furious about having to wait up six weeks to get a tax number from the Inland Revenue.

Workers have slammed the new system of handing out Unique Taxpayer Reference codes arguing it is more bureacratic than the previous CIS4 card system dumped more than two years ago.

The delay has caused such an outcry that Treasury secretary Stephen Timms has been asked questions in Parliament.

A bricklayer told Contract Journal: “I was laid off recently and decided to go self employed again.

“The system leaves you out of pocket for weeks. First you have to wait until you are working to register and then it takes weeks to get my reference number.”

He added: “It never used to be like this.”

David Jackson, director of payroll services company Hudson Contracts, said: “We are coming across this problem on a daily basis. Workers are furious that it is taken so long to get their numbers.

“We seen people who have had to wait for five or even six weeks for a number.

“It is a real time bar on those people wanting to go self employed. While workers are waiting for the number they have to pay 30% tax, which they can’t claim back until the annual tax refund,” he explained.

Jeff Ennis, Labour MP for Barnsley East & Mexborough, has raised the issue in Parliament and asked Tresury secretary Stephen Timms to state for the record how long its takes to get a unique tax reference number.

Timms said: “HM Revenue and Customs currently register the vast majority of construction industry scheme applications for individuals within six to seven working days.

“The unique taxpayer reference number is then dispatched to individuals via an automated process within the next seven working days.”

Jackson said: “On the ground many self employed people are waiting a lot longer than two weeks.”