The government's plans to tax many self-employed construction workers as employees have been rounded on by the Chartered Institute of Taxation. HM Revenue & Customs' consultation document False self-employment in construction: taxation of workers suggests there is a serious issue of 'false self-employment' in the construction industry. As a result, it proposes to deem workers within the industry to be in receipt of employment income for tax purposes, unless one of three set criteria is met. The CIOT believes HMRC already has the necessary powers to tackle false self-employment where it exists. It says the proposed new procedures are likely to catch many people whom the courts have held to be self-employed, while failing to address the issue of employment rights. 'Rather than adding further legislation, there needs to be more effective enforcement of the existing rules,' said Colin Ben-Nathan, chairman of the CIOT's Employment Taxes Sub-committee. 'The government should be directing greater resources towards enforcement and, where there is evidence of abuse, crack down hard on evasion.' Anne Eager, an expert in tax issues for the construction industry at Robert James Partnership, said: 'If the proposed changes go ahead as currently suggested, the practical implications for anyone within the building industry who engages subcontractors could be huge.'