From Mr Howard Gray Sir: Andrew Duncan's article on IR35
is not correct with regard to the building trade. He says that carpenters 'possessing their own chisels' are self-employed in the eyes of the Inland Revenue — not so.
When the scheme was applied to the building trade, the majority of selfemployed workers disappeared. Roughly 35 per cent seem to have gone into the black economy or have left the building industry altogether.
Those who stayed and became employees demanded massive pay increases which then had to be given to all other employees.
I wonder whether the amount of VAT lost from those now in the black economy matches the extra revenue gained from those now paying PAYE and Employers' National Insurance.
So, next time you cannot get a carpenter or a plumber, or you swoon at the bill, look to our old friends the Inland Revenue. Howard Gray
Essex
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