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Hudson Contract sees increase in ‘more aggressive tactics’ as HMRC questions construction firms
HMRC is said to be stepping up compliance checks on the construction industry – using its powers to investigate payments for off-payroll labour and gross payments to net paid subcontractors for plant and materials.
Bridlington-based Hudson Contract says it has seen a noticeable increase in HMRC activity and the deployment of what it cals ‘more aggressive tactics’ in recent months, with twelve companies seeking its support in the last six weeks alone.
The company’s Compliance Director Dan Davies said: “The firms concerned are groundworks, joinery, scaffolding and surfacing contractors located across England with turnovers ranging from £2m to £18m.
“HMRC has written to the companies with demands for information including schedule of payments to ‘all workers on a self-employed or off-payroll basis, a description of work undertaken by each worker, sample contracts and company handbooks, information used to determine employment status, details and costs of all materials supplied, evidence of third-party plant hire costs, and supply chain compliance
“In some of the correspondence, HMRC also enclosed an in-depth questionnaire, probing employment status and the categories of off-payroll workers engaged directly, through limited companies or via agencies, umbrella companies and managed service companies.”
Mr Davies said company directors often found the level of questioning to be invasive, ambiguous and a cause for concern, even when their books were in order.HE said: “The costs of getting it wrong can be significant. In one recent case involving a roofing company that engaged between 15 and 20 labour-only sub-contractors, HMRC hit the firm with a statutory income tax notice for more than £330,000 for just one financial year, another was handed a VAT assessment totalling £900,000 because of a tax loss in his supply chain.
“These cases show that HMRC is stepping up the enforcement of off-payroll working rules known as IR35, VAT compliance and general CIS and PAYE compliance issues such as paying net paid subbies gross amounts for plant and materials.”
Hospitality workers on ‘precarious’ contracts found to be vulnerable to sexual harassment
Free online business support sessions offered to Boston, East Lindsey and South Holland companies
- Tuesday 18th June at 10am – Workplace Communication Training, which aims to foster an inclusive and effective communication environment, enhancing team collaboration and productivity in a culturally diverse workplace.
- Wednesday 26th June at 10am – Website and Content Localisation, training which will provide strategies to effectively adapt digital content for international audiences, ensuring messages are culturally relevant and accurate, which enhances global brand appeal and market penetration.
- Thursday 27th June at 10am – Sales Communication Training, focusing on learning how to effectively communicate across diverse cultural backgrounds, increasing the potential for successful market expansion and improved client relationships in new geographical markets.
- Tuesday 2nd July at 10am – Build Real Relationships in your Community and learn how to effectively engage with members of your community.
- Thursday 4th July at 10am – Multicultural Marketing for Community Engagement, which concentrates on learning to connect authentically with diverse communities through targeted marketing strategies that reflect cultural sensitivities and preferences.
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Premier Inn signs 25-year lease on York property developed by CBRE
Premier Inn has signed a 25-year lease with CBRE Investment Management, on behalf of CBRE UK Property PAIF, on a 188-bed property in York in York.
Built by main contractor Clegg Construction, the four-storey building on a one-acre plot, formerly a retail warehouse leased by Carpetright on the city’s Foss Islands Road.
The development features multiple energy-saving technologies, such as air source heat pumps, heat recovery ventilation systems, LED lighting, photovoltaic panels, and electric vehicle charging points. Accordingly, the building has achieved an EPC A rating and is due to achieve a BREEAM rating of “Very Good”.
Jamie Philips, Fund Manager for UK Property PAIF at CBRE, said: “We expect growth in the hotels and catering sector to outpace the wider economy during the next five years. Tourism supports a significant number of jobs in York and given the strength of the city as a destination for tourists, combined with its current undersupply of hotel beds, the addition of a new modern and sustainable hotel will help to bolster York’s businesses and economy. This project sits firmly within the Fund’s strategy, providing a great opportunity to thoughtfully invest in and repurpose an existing asset, in order to create a long and sustainable cash flow for our investors.”
Clegg Construction MD Michael Sims added: “The site is a historically-sensitive city centre location in York, and I am delighted with how the Clegg Construction team conducted themselves with minimal disruption to local businesses and residents. The scheme achieved consistently high Considerate Constructors Scheme scores in audits taken throughout the contract. More than 80% of the workforce travelled 30 miles or less per day to reach the site – demonstrating our commitment to supporting the local community and to sustainability.”
“As a company, Clegg Construction is very happy to have now handed over this new development which I am sure will be an asset to York and its tourism and business communities, along with the local economy.”
Two new associate promotions at Ramsdens
