Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps are being taken to prevent cases of false self-employment in the construction industry.

The Government introduced legislation in Finance Act 2014 to tackle false self-employment arising through intermediaries. Where there is control over the worker, as a result of the legislation, an intermediary has to operate PAYE and pay National Insurance Contributions. It was estimated that this would lead to 200,000 workers being correctly treated as employed.

Since April 2015, intermediaries also have to submit a quarterly electronic return if they have made payments to a worker without deductions under PAYE. The first returns were made to HM Revenue and Customs (HMRC) in July and November 2015, and HMRC is using the information to tackle false self-employment through intermediaries.