The study by Professor Mark Harvey of the University of Essex calculates that there are between 375,000 and 425,000 workers falsely self-employed in the UK construction industry. Their employers pay no National Insurance (NI) contributions, while the workers themselves pay lower NI contributions and can claim special tax rebates.
Professor Harvey, of the Department of Sociology, explained: ‘False self-employment is adopted as a device to reduce tax liabilities and employer responsibilities. It occurs through the Construction Industry Scheme (CIS), a self-employment tax scheme peculiar to the construction industry. Unlike genuine self-employment workers they are paid wages rather than work for a client under contract, have set hours of work and have tax deducted at source.
‘The UK construction industry has been characterised by high levels of false self-employment for several decades but recently this level has risen significantly.’
Much of the recent rise in false self-employment can be attributed to the influx of migrant labour from the new member and accession states in Europe. Professor Harvey explained: ‘Employers have taken advantage of the vulnerability of migrant workers, and exacerbated their insecurity by engaging them as false self-employed. Government regulations for migration make it easier to migrate as self-employed, and this has played into the evasion economy characteristic of much of the industry.’
Professor Harvey added: ‘Government figures of between 100,000 and 200,000 falsely self-employed and a fiscal loss of £340,000 are gross underestimates. Treasury ministers, however have effectively acknowledged that self-employment is out of control.’
The growth of false self-employment is one of the major causes of the skills gap, with an annual deficit of 20,000 apprentices and trainees. Three quarters of construction companies have no apprentices or trainees in their workforce.
The report, entitled The Evasion Economy was commissioned by UCATT (the Union of Construction, Allied Trades and Technicians) and has been launched this week at the Union’s National Delegate Conference.
Kate Clayton | alfa
Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik
The nearby, giant radio galaxy M87 hosts a supermassive black hole (BH) and is well-known for its bright jet dominating the spectrum over ten orders of magnitude in frequency. Due to its proximity, jet prominence, and the large black hole mass, M87 is the best laboratory for investigating the formation, acceleration, and collimation of relativistic jets. A research team led by Silke Britzen from the Max Planck Institute for Radio Astronomy in Bonn, Germany, has found strong indication for turbulent processes connecting the accretion disk and the jet of that galaxy providing insights into the longstanding problem of the origin of astrophysical jets.
Supermassive black holes form some of the most enigmatic phenomena in astrophysics. Their enormous energy output is supposed to be generated by the...
The probability to find a certain number of photons inside a laser pulse usually corresponds to a classical distribution of independent events, the so-called...
Microprocessors based on atomically thin materials hold the promise of the evolution of traditional processors as well as new applications in the field of flexible electronics. Now, a TU Wien research team led by Thomas Müller has made a breakthrough in this field as part of an ongoing research project.
Two-dimensional materials, or 2D materials for short, are extremely versatile, although – or often more precisely because – they are made up of just one or a...
Two researchers at Heidelberg University have developed a model system that enables a better understanding of the processes in a quantum-physical experiment...
Glaciers might seem rather inhospitable environments. However, they are home to a diverse and vibrant microbial community. It’s becoming increasingly clear that they play a bigger role in the carbon cycle than previously thought.
A new study, now published in the journal Nature Geoscience, shows how microbial communities in melting glaciers contribute to the Earth’s carbon cycle, a...
20.04.2017 | Event News
18.04.2017 | Event News
03.04.2017 | Event News
21.04.2017 | Physics and Astronomy
21.04.2017 | Health and Medicine
21.04.2017 | Physics and Astronomy