Sham contracts in construction industry: tips and advice

Sham contracts in the construction industry are increasingly being used to avoid tax legislation. Ian Anfield, managing director of Hudson Contract, provides tips on how to spot sham contracts and explains the risks associated with them

Maintaining a flexible workforce is business-critical in the construction industry, with freelance labour-only sub-contractors, or freelancers, playing an extremely valuable role. It is absolutely vital that construction firms ensure that freelancers are engaged under the correct contractual terms to avoid false self-employment and to adhere to tax and employment laws.

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