ECH11055 - Status: Construction Industry Workers - Formal Recovery

The normal recovery route is through a negotiated settlement. Guidance is also given at ECH11050 where contractors contend that they have acted reasonably in treating workers as self-employed.

But for a variety of reasons some contractors may be unwilling to settle arrears for earlier years, where this happens EC staff should

• switch to the formal route and
• explain that no allowance will be given for any CIS deductions.

Before taking recovery action

• make a final attempt to negotiate a Class 6 settlement giving a reduction for the appropriate CIS deductions.