Still a question of status?

KEY POINTS

• The new PAYE regulations.
• More HMRC reviews of construction businesses.
• Are subcontractors really self employed?

Those businesses within the construction industry that retain workers particularly labour-only on a self-employed basis have not had things easy of late.

First the new construction industry scheme (CIS) launched just over 12 months ago brought the issue back into the spotlight and the new monthly status declaration – together with its swingeing penalty regime – was for many the final straw that saw them convert at least some of those workers into fully paid-up employees under PAYE.

Recently however construction businesses may have been forgiven for breathing a small sigh of relief at new legislation (Income Tax (PAYE) Regulations SI 2003 No 2682 Regs 72E and 72F) that removes the threat of a retrospective demand for...