More News » Labour wants construction industry tax avoidance stamped out

A LABOUR GOVERNMENT would look to clamp down on construction workers falsely treating themselves as self-employed to lower their tax bill.

The opposition is to claim that £400m is being lost to the Treasury through the current construction industry tax scheme.

The party believes that as many as 300,000 workers are working as sub-contractors on projects – who in any other industry would be treated as self-employed and paying full NI contributions, reports The Independent.

The tax affairs of freelance professionals will also be scrutinised, said the paper.

Rachel Reeves, the shadow chief Treasury secretary, said: “In tough times like these when there is less money around, we cannot afford to leave loopholes in the tax system that allow vital revenue to be lost. It is also unfair on the majority who do the right thing and play by the rules if some are able to avoid paying their fair share of tax.”