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FMB welcomes CIS reform in Pre-Budget statement and calls for clarity on employment status

The Federation of Master Builders (FMB) has welcomed proposals to reform the Construction Industry Scheme (CIS) announced in the Chancellor's Pre-Budget Statement.

Said FMB external affairs director, Andrew Large:

"We have long campaigned for radical reform of CIS4 and CIS6, which have caused an unnecessary administrative burden, particularly on smaller contractors and subcontractors and also created a climate where false self employment can flourish. More importantly, the Government is consulting with all sectors of the industry at a sufficiently early stage that we can directly influence the final scheme."

The Inland Revenue has already invited FMB members to participate in focus groups as part of the consultation process. Mr Large continued:

"False self employment has been long been a thorny issue for the construction industry. While the FMB fully supports those who are genuinely self-employed, the Inland Revenue's consultation process coupled with the current DTI review of employment status gives the Government a golden opportunity to arrive at a single, consistent, view as to whether an individual is employed or self employed.

"False self employment serves no-one. It encourages people towards the cowboy end of the market, makes it more difficult to enforce health and safety compliance and training requirements and is building up a long-term problem for workers who are not paying adequate NI, pension and social security contributions."

First posted: 4 December 2002. Last modified: 4 December 2002.

 

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