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Tax crackdown on self employed status

UK CONSTRUCTION employers are being targeted by the taxman in a bid to crackdown on bogus self-employment.

In a review of its tax scheme for construction industry workers, the Inland Revenue is writing to 57,000 contractors and subcontractors suggesting that they may have wrongly classified 'employees' as 'self employed workers' or been mis-classified themselves.

Implications for those in breach of the rules are significant. Jonathan Manduell, tax partner and member of the property sector division of national accountancy group UHY Hacker Young, said: 'Contractors could find that they owe a fortune in unpaid tax, national insurance, interest and penalties.

'The Inland Revenue is targeting businesses where, from its records, it has doubts about the employment status of subcontractors. Anyone who gets the letter should seek advice quickly to avoid hefty fines.'

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