Builders' tax charge woe

Sep 18 2009

In brief...

Proposed changes to the way the majority of builders are taxed could hamper recovery in the construction industry, according to the accountancy body, ICPA.

A planned crackdown on the Construction Industry Scheme will mean up to 300,000 bricklayers, plumbers, carpenters and plasterers working as sub-contractors will effectively lose their self-employed status in the eyes of the taxman.

Hmrc estimates altering the tax regime will generate around £350 million each year, though the ICPA believes the bulk of this money will be from National Insurance charges levied on construction companies.

Icpa chairman Tony Margaritelli said: "Whilst everyone applauds the notion of people paying the correct tax this is not the way to achieve that goal for the building industry."