I like you have been head down this past week, trying to make sense of all that is befalling us and managing the various conflicting pressures.

Mike and I have been running Tapper Interiors now for 35 years, but this has, without doubt, been the toughest week yet – I am shell shocked.

The lack of clear guidance from Government has added to the pressure as we have desperately tried to follow advice and do the socially responsible thing, but increasingly mindful of the health and welfare of our people and their families.  I think Iain summed it up well in the Telegraph yesterday when he said the ambiguity has made this feel like death by 1,000 cuts for businesses in our sector – that is certainly how I feel.

In the last 24 hours many more sites have closed, but not all – there seems to me to be little logic to this.  Where safety concerns have been raised, we have seen instances where clients have reacted by threatening to impose onerous delay clauses.

I know FIS is feeding these concerns directly to Government (please send details in), but increasingly now working with members on individual cases and trying to support dialogue with clients and major contractors.  The message from FIS is clear, if you cannot do it safely, don’t do it.  If the necessary precautions are not being implemented on-site, concerns must be raised with client, but ultimately reported to the HSE via their whistleblowing service.

If you deem it unsafe to continue, refer to your contract and ensure that you provide the necessary notifications for delay or suspension – paper trails and communication are critical to protecting your business, but protecting our people is everything.

As a Director of Tapper Interiors, my first responsibility is to do what is reasonably practicable to protect the health, safety and welfare of employees (and other people who might be affected by our business).  Get this wrong and beyond the human cost, what are the potential liabilities if we carry on regardless and people do get sick or worse?

I didn’t expect this mess when I agreed be FIS President, but I have never been more glad to be an FIS Member or proud of our organisation.  They, guided by the Board and supported by our community have been a vital lifeline, helping to inform the decisions we as a business have had to make and even been that caring and supportive voice at the end of the phone.  Together we are stronger.

Before this situation escalated, a theme of my Presidency was Rebuilding Construction and I want to leave you with some hope.  As a sector we will pull through this and my hope is that it will present us with a new opportunity to rebuild.

I do believe a lack of clarity/understanding of our sector from our Government has intensified things, but we must also look to the contracts and behaviours and accept that the industry cannot and must not be allowed to continue in this way.

Stay safe and well, keep those in your care safe and see you on the other side!

Helen

Helen Tapper
Business Operations Director, Tapper Interiors Limited
FIS President

It is with a sad heart that we have to inform you that Jean Birch has passed away from cancer.

Many of you might know Jean, she was CEO of the Partitioning and Interiors Association (PIA) and Association of Interior Specialists (AIS) for nearly 23 years, before retiring in January 2006.  She worked tirelessly for the organisation and her efforts and dedication set the foundations for the trade association we have today.

There will be a private family funeral, however it is hoped there will be a memorial service to celebrate her life later in the year for friends. If you knew Jean and would like any further information please email janeknight@thefis.org

Construction industry chiefs have voiced their anger as firms scramble to understand if building sites should stay open.

Building work is being allowed to continue despite Boris Johnson ordering people to stay in their homes on Monday night. It has fuelled anger from workers who fear their safety is at risk, and from health staff concerned about overcrowding on public transport.

Several large firms including Taylor Wimpey and Travis Perkins have decided to stop working until the lockdown is lifted, highlighting the confusion ricocheting around the industry.

Iain McIlwee, chief executive of FIS, the trade body which represents fit-out companies, said: “We’re in limbo right now. Government communications have been absolutely woeful on this one.”

He said businesses were trying to understand how to balance their responsibility to keep people safe with the need to keep staff in work.

The message to builders has been to carry on operating until they are told to stop, Mr McIlwee added.

At the highest levels of Government, disputes were raging on Tuesday over why construction work was continuing.

London mayor Sadiq Khan said he told Mr Johnson builders should not be going to building sites except for essential safety reasons.

He claimed to have been overruled by the prime minister, who said he wanted “business as usual” wherever possible.

Mr McIlwee said: “For me it’s shocking that the Government didn’t give us a namecheck on Monday.

“Ultimately construction hasn’t had the clear guidance we need. It’s death by a thousand cuts.”

One piece of advice issued by the Government was for workers on site to ensure social distancin, where they stay apart from each other to stop the virus spreading.

But for many thousands of builders, the idea of maintaining a safe distance was laughable.

One construction worker said: “What about the canteens and [toilets] on sites, with 50 guys using two toilets and six tables? They’ve obviously not got a clue.”

Photos shared on social media of builders eating side by side in cramped canteens have generated angry responses from the public.

This close proximity has led large construction firms to shut down while social distancing rules are in force.

One of the UK’s largest construction projects – the nuclear plant Hinkley Point C – said on Tuesday afternoon that it would drastically reduce the number of staff it was asking to work on site.

Builders at Hinkley Point C were one of the groups pictured on social media, working in close quarters. Meanwhile, work on fellow megaproject Crossrail has been halted for now.

Even if the Government allows construction work to continue, many smaller firms will be forced to cease operations as they are unable to get hold of essential parts.

Gutterworks, a construction firm based in Redhill, Surrey, said that it is now unable to get important tools from builders’ merchants firms such as Travis Perkins, which decided to shut up shop after Mr Johnson’s announcement on Monday night.

Hossam Abougabal, a senior construction analyst at IHS Markit, said: “In the short-term, our view is that construction projects will be severely impacted by social distancing rules and restrictions on non-essential construction work.”

Mr Abougabal said that the outlook for the construction industry is likely to suffer from global supply chain disruptions, labour shortages and site shutdowns.

He added: “All this will compound a difficult year for the sector with delays, extensions and rising building costs likely to impact project delivery.”

This stress is already being felt. Housebuilders Redrow, Berkeley, and Crest Nicholson have all scraped or scaled back their dividends as the industry reels from chaos.

Some trade organisations have suggested that the construction sector has been allowed to continue because of the country’s housing crisis.

But Scottish First Minister Nicola Sturgeon said construction sites should close.

Plumbers and electricians can now only leave the house for essential jobs, such as burst pipes.

John Giazzi, marketing manager at the Association of Plumbing and Heating Contractors (APHC), said: “They understand their role as key workers in protecting public health, and they’re happy to do emergency call outs.”

“They want to do the right thing but also follow the Government’s advice.”

Mr Giazzi added that more support is needed for plumbers and electricians, many of whom are sole traders.

By Ed Clowes

Published by The Telegraph 

FIS Associate Member ForrestBrown explains how the upcoming financial year-end could be an opportunity for members to get cash back from the tax man.

If your accounting year-end is 31 March, it’s worth reading this. If you are an innovative business, this is your deadline for claiming an R&D tax credit for your 2017/18 accounting period.

If you don’t think you’re innovating, many companies are surprised to learn that they qualify for this valuable source of funding, so it could pay to double-check. In fact, ForrestBrown has helped FIS members members receive over £3.5m in R&D tax credits.

Why do you need to act now?

You have two years from the end of your accounting period to submit an R&D tax credit claim for qualifying expenditure you’ve incurred in that period. Once the clock strikes midnight on 31 March 2020, you can no longer recoup any of the money spent on qualifying activities between 1 April 2017 and 31 March 2018. If you have already made a claim for this period but want to be sure you haven’t missed out on any untapped value, this same deadline applies for reviewing a claim too.

How do they work?

R&D tax credits are a government tax incentive designed to encourage innovation in the UK. The government rewards limited companies that are innovating because it knows that doing so brings significant benefits to the wider UK economy.

As a tax incentive, R&D tax credits are only available to companies that are liable to Corporation Tax.

You also have to be undertaking R&D, and have spent money on it. If you have developed new or improved products, processes, or services, you may be carrying out qualifying activity.

Examples of R&D in the finishes and interior sector include:

• Designing a glass partitioning system that meets certain acoustic requirements.
• Developing installation methods to accommodate the refurbishment of a listed building.
• Installing new partitioning systems that are sympathetic to the existing infrastructure.

What are they worth?

According to HMRC who administer the claims, the average R&D tax credit value to SMEs is £53,714. That’s cash that could spark the next big project, or fund the final push in creating something remarkable.

How much R&D tax credits are worth depends on how much money you have spent on qualifying R&D activity. You can include the following costs in your claim: staff, subcontractors, materials, and consumables (such as heat, light and power).

SMEs can recoup up to 33p for every pound spent on qualifying expenditure using the SME R&D tax credit scheme. This means if you have qualifying costs of £500,000, you could receive a benefit worth £166,750.

Large companies can recoup almost 10p for every pound spent using RDEC (research and development expenditure credit). This means if you have qualifying costs of £1,000,000, you could receive a benefit worth £97,200.

As one FIS member we’ve worked with for several years explains: “ForrestBrown always ensure our claim is fully maximised. They are experts when it comes to understanding HMRC’s guidelines, so we always have peace of mind that our claim will meet HMRC’s requirements.”

Don’t let your grant funding stop you

There is a misconception that the receipt of a government grant prevents you from claiming R&D tax credits. This is not true.

Instead, we would suggest that if you are grant-funded, you should certainly consider claiming R&D tax credits. How much your R&D tax credit is worth will depend on the nature of your grant – and whether you are able to make an SME, RDEC, or hybrid claim. 

How to beat your 31 March deadline

It’s best to work with true experts in this specialist area when submitting a claim. They will optimise the value of your claim. This means including everything that is valid, whilst also ensuring it can be robustly backed up should HMRC challenge it.

ForrestBrown is a member of FIS and has already delivered £3.5m for fellow members. To find out how much a claim could be worth to your business, get in touch with ForrestBrown Director and Chartered Tax Adviser Adam Kotas on 0117 926 9022 or via email at a.kotas@forrestbrown.co.uk