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Millions of bogus construction workers costing UK

29/11/2007

Construction union Ucatt has revealed that an estimated 50 per cent of those working in the construction industry are operating under "bogus self-employment", costing the Exchequer billions each year.

The general secretary of the union Alan Richie told the Business Enterprise and Regulatory Reform select committee that fraudulent self-employment claims within the sector was now costing the government £5 billion on an annual basis.

He told Personnel Today: "Bogus self-employment is the scourge of the industry. It has led to massive skills shortages and continues to deny workers basic employment rights.

"There is also strong evidence that building sites using false self-employment rather than direct labour are less safe to work on."

Employees working under a construction industry tax scheme pay reduced tax and National Insurance contributions.

Mr Richie also warned that if errors already made in the Olympics are not corrected, it could lead to a future "industrial relations disaster". ADNFCR-1196-ID-18375184-ADNFCR


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