The union has called on chancellor Gordon Brown to close the loophole in today’s Budget. The additional revenue would cover the entire costs of the 2012 Olympics http://www.london2012.org/en – estimated at £10bn, the union claims.
It is though that 40% of the 2.2 million building workers employed in the UK are operating under the false self-employment regime. The workers possess a CIS4 card, which denotes they are self-employed, when in reality they are directly employed by a contractor.
Workers on a CIS4 card are entitled to reduced tax and national insurance contributions.
After consulting academics and experts, the union believes that a conservative estimate would be that false self-employment is currently costing the Treasury £2.5bn.
Alan Ritchie, Ucatt general secretary, said: “No-one in Britain should have to pay a penny towards the Olympics. Gordon Brown needs to close this tax loophole.”