The hidden secret of the construction industry
The construction industry in the UK is worth around £164 billion a year and companies make vast profits as spending grows on a range of new and existing projects. Nevertheless they are the beneficiaries of an unofficial subsidy with thanks to you the taxpayer.
The Construction Industry Scheme was originally devised in the early 1970s as a way to beat tax evasion but has since become a means for employers to generate more profit at the expense of their employees.
Almost half of the labourers who work in the sector are technically self-employed although the reality of that situation is open to question as payroll agencies are used by companies to extract the most out of their workforce with only minimal associated risk.
In this week's episode of the podcast we look at a company that has lost its privileges under the scheme and is appealing to get them back by calling, among other things, on their right to property under the European Convention on Human Rights. We examine that argument but also analyse just how and why such a defective scheme has been allowed to exist for so long.
Episode link: http://uklawweekly.com/2018-uksc-31/
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