Construction sector represents 25% of tax evaders – London Business News | Londonlovesbusiness.com

A new analysis by GB Concrete & Pump has uncovered significant levels of tax evasion within the construction industry.

The company’s in-depth investigation of HMRC’s latest list of deliberate tax defaulters reveals that construction firms comprise nearly a quarter (24%) of those who defaulted in the past year.

Out of 529 total tax defaulters, 129 companies were found to be construction-related businesses, highlighting a troubling trend within the industry. Together, these companies evaded £14,888,771 in taxes, averaging £115,417 in unpaid tax per company.

The financial penalties associated with these defaults are also substantial. The cumulative amount of penalties levied reached £10,260,196, with each defaulting construction company paying an average penalty of £79,536.

A spokesperson at GB Concrete & Pump said, “This report is very concerning for the construction industry. To see that nearly a quarter of deliberate tax defaulters come from our sector is a real blow and paints a negative picture of construction companies.

“The industry can operate on tight margins with complex payment structures, which could unfortunately lead some to cut corners. However, there’s absolutely no excuse for tax evasion. It’s not only illegal but also deeply unethical.

“This kind of behaviour undermines the entire industry, giving reputable, hardworking businesses a bad name and potentially making it harder for them to secure contracts and financing. However, all construction companies shouldn’t be tarnished with the same brush.

“It’s important, therefore, that we champion ethical practices, transparency and full compliance with tax laws.”