Bogus self-employment in construction is estimated to lose the Treasury £1.9billion pa. Casualised employment is highly profitable for companies and the model is being increasingly embraced in the wider labour market. Minimum waged, casual workers need to be subsidised by the taxpayer, and are unable to save into pensions. The government loses twice. It’s tax revenue is reduced and its welfare bill increased. The only beneficiaries are the companies using these exploitative practices. Other companies are forced to follow suit or go out of business. The worker loses, the taxpayer loses, the Treasury loses – but the profiteers are riding high at everyone elses expense.
A detailed explanation of how bogus self-employment works in the construction industry in the following.