To ask the Chancellor of the Exchequer what estimate the Inland Revenue has made of the degree of compliance of companies in the construction industry with changes in the application of the rules concerning the employed or self-employed status of workers in that industry. [9126]

Following requests from the construction industry for help in correctly determining the employment status of its workers, the Inland Revenue and Contributions Agency published new guidance in 1996. To provide uniformity of approach across the industry, construction companies were required to review the employment status of their workers and, by 5 April 1997, make necessary changes and start accounting for Pay-as-you-earn and national insurance contributions where appropriate.It is too soon to estimate with confidence the number of workers whose employment status has been changed, but it is clear that a substantial number of companies have made changes and started to account for PAYE and NICs where appropriate.