Research predicts the so-called 'tax raid on contractors' will see:
- Construction workers lose an average of £117 per week, equivalent to £6,084 a year;
- Nurses will receive an overnight real terms pay cut of £89.43 per week or £4,650 a year;
- Contracting supply teachers will lose £62.56 per week or £3,252 a year.
Trade body Prism, which commissioned the research among its members, is campaigning to stop the Chancellor 'destroying the right of flexible workers employed as contractors to claim travel and subsistence relief to temporary workplaces'.
The Yes2T&S campaign, launched a fortnight ago, is designed to appeal directly to the MPs of affected contractors and protect workers from the changes.
Crawford Temple, CEO of Prism, said: “These figures lay bare the huge impact this stealth tax raid by the Chancellor will have, affecting up to 1.6m contractors just as the country gets back on its feet.
“The overnight drop in take home pay will either mean there are fewer workers willing to travel or rates of pay will have to go up. That burden will be borne by public and private sector employers which will force prices up and deliver worse value for money for the taxpayer.”
Prism estimates the changes to travel and subsistence will hit contractors with a 20 per cent pay cut on average and expects the cost of the shortfall in take-home pay to cost employers £7bn if they are forced to plug the gap
The Yes2T&S campaign allows contractors and their supporters in the intermediary, tax, recruitment and umbrella sectors to appeal directly to their MPs for help in combating the tax change.
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Susie Hughes © Shout99 2015
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