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Taxation: Construction

Volume 471: debated on Thursday 31 January 2008

To ask the Chancellor of the Exchequer how many companies in the construction sector have been fined since the introduction of the new construction industry scheme for wrongly stating the employment status of a member of their workforce; and how many workers were given the wrong status by each such company. (178591)

Information provided on returns made by contractors under the new construction industry scheme is used to inform employer compliance reviews undertaken by (HMRC). These reviews can include checking the employment status of workers as well as other aspects of the return.

Employer compliance reviews involve examination of records and fact finding and consequently they can take some time to complete. At present, no instances have arisen where penalties have had to be imposed because of an incorrect declaration of employment status by a contractor.