Almost nine out of 10 construction firms surveyed by KPMG said tax changes designed to tackle false self-employment were unnecessary

HM Revenue & Customs is asking the industry to comment on a proposal to tax all construction work on a PAYE basis. This would require contractors and housebuilders to make national insurance contributions for their subcontractors.

Eighty-seven per cent of respondents said the stricter policing of existing rules would be a better option.

Almost half felt that the proposals would penalise genuinely self-employed workers.

Earlier this month, the Home Builders Federation and the National Federation of Builders also attacked the proposed changes.