by Scott Roberts

Construction firms in Kent could end up paying more tax under proposals by the Government.

HM Revenue & Customs wants to make workers who are self-employed qualify for National Insurance contributions.

Currently, workers who claim they are self-employed can avoid paying National Insurance if they are not employees of the company they work for.

Under the new proposals, tradesmen working for any company, even if it is just for a few days would need to be placed on the employer’s payroll.

The Government wants to bring in the plans in order to target bogus employment and unpaid taxes.

Simon Warne is a tax specialist at Horwarth Clark Whitehill in Maidstone. He said the plans would damage Kent’s construction industry: "Stiff opposition is being mounted already and lobbying is taking place from the construction sector because the proposals by the Government are deeply unpopular."

If the proposals are passed by Parliament, it could mean that 300,000 construction workers across the country having to pay higher tax. Mr Warne believes the plan is simply a way for the Government to generate money without thinking of the financial consequences for struggling construction firms.

"For employers and contractors they will enter a less favourable tax regime, although it's difficult to give an exact figure, however under these plans everyone loses out except for the Treasury," he said.