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The Great Payroll Scandal

December 2012

This report investigates an employment scandal costing hundreds of millions in lost tax revenue, and depriving hundreds of thousands of construction workers of their employment rights.

Taking place across the UK payroll companies are helping construction firms switch their staff from the status of employee to self-employed subcontractor, even though many of these individuals are not genuinely self-employed. Once switched to self-employment, the individuals concerned are stripped of their entitlement to holiday pay, sick pay, a company pension and the national minimum wage.

Some payroll companies are also using tax relief claimed against workers’ expenses to fund Employers’ National Insurance and pay their own fees. Many of these activities are in clear breach of government tax rules, but are openly endorsed by payroll companies on their websites and in promotional literature.

UCATT has campaigned against the activities of payroll companies for a number of years and based on their findings exposes the alarming truth in this paper.

You can find out more about this publication here.