by Clair Mooney | 31 Mar, 2022 | Main News Feed
April sees a number of legislative and tax changes come into effect, we’ve included details in below to remind members and ensure they are complying.
Minimum wage rates
From 1 April, the National Living Wage will increase to £9.50 per hour, whilst the National Minimum Wage will rise to £9.18 for 21‐22 year olds, £6.83 for 18‐20 year olds, and £4.81 for 16‐17 year olds. The Apprentice Rate will also increase to £4.81.
End of Red Diesel rebate
From 1 April the entitlement to use rebated red diesel will be removed from most sectors, including construction, which means it will be illegal to put red diesel into the tank of a vehicle or machine being used for construction work. If HMRC finds traces of red diesel in such a vehicle or machine, it will ask for evidence to demonstrate that it was put in before the rules changed and is still being used up. HMRC has confirmed it will take a pragmatic approach to enforcement in this situation but can seize the vehicle or machine and issue a fine of £250. To help members manage this significant change, Build UK has published a series of Frequently Asked Questions covering the transition from red to white diesel which includes a checklist of the steps to take.
New Plastic Packaging Tax
The Plastic Packaging Tax comes into force on 1 April 2022 and will be charged at a rate of £200 per tonne. The CPA has produced a briefing paper on the effects of this new tax.
Gender pay gap deadline
Companies with 250 employees or more have until Monday 4 April to report their gender pay gap information for 2021/22. Employers that fail to report on time or report inaccurate data via the gender pay gap service could face enforcement action.
by Clair Mooney | 31 Mar, 2022 | Main News Feed
The Construction Leadership Council has published a document intended to support UK firms respond to the impacts of the current crisis in Ukraine.
Companies from across UK construction have reported emerging challenges that have arisen because of the conflict, including escalation in costs for materials and energy.
In response, the CLC has drawn together Industry response to the Ukraine Crisis. Guidance Note 1, which provides expert guidance to outline the practical steps that all parts of the industry can take to mitigate the market impacts.
As with its response to the Covid crisis, the CLC guidance reminds of the importance of early engagement and collaboration to secure both existing and planned projects. It also provides dedicated checklists for different types of organisation including clients, main contractors and specialists.
Arcadis partner and CLC member Simon Rawlinson said:
“We recognise that many businesses will be concerned about how the current situation in Ukraine will impact upon their company and the work that they do. The CLC hopes to help companies navigate through these current challenges with guidance and points to think about, supporting firms in what could be a challenging period for the sector.”
You can download the guidance note here.
by Clair Mooney | 24 Mar, 2022 | Main News Feed
From Friday 1 April, the Government guidance to stay at home for five days following a positive COVID‐19 test will be removed, along with the Working Safely During Coronavirus guidance and the health and safety requirement for employers to explicitly consider COVID‐19 in their risk assessments. As a result, the Build UK COVID‐19 flowchart will be withdrawn and the Site Operating Procedures and the Use of Face Coverings in Construction will remain available as reference documents only from 1 April.
The Coronavirus Statutory Sick Pay Rebate Scheme has now closed, and the deadline for submitting final claims is today at 11.59pm. Government guidance on travel to the UK has also been updated and people are no longer required to take any COVID‐19 tests or fill in a passenger locator form when arriving from overseas.
by Clair Mooney | 24 Mar, 2022 | Main News Feed
From next Friday 1 April, the prompt payment threshold will increase for suppliers bidding for Government contracts above £5 million per annum. In accordance with the updated Procurement Policy Note (PPN) 08/21, companies will be required to show that they pay 90% of invoices within 60 days and have an action plan in place to achieve a standard of 95% in future, otherwise they risk being prevented from bidding.
On average, Build UK Contractor members pay 95% of their invoices within 60 days, and the payment performance table shows the percentage of invoices paid within 60 days for more than 100 of the industry’s largest companies.
by Clair Mooney | 18 Mar, 2022 | Main News Feed
There remain considerable uncertainties regarding the economic impacts of Russia’s invasion of Ukraine as well as the effects of tightening sanctions on Russia.
Whilst demand in the UK economy and construction currently remains robust, strengthening supply chain constraints and higher inflation will inevitably hit growth.
The extent to which this occurs will be dependent on the extent of the conflict and markets’ uncertainty surrounding its impacts, the duration of the conflict and the length of time at which energy costs remain at post-financial crisis peak levels.
This guidance note from the Construction Products Association looks at the potential ramifications on the construction supply chain.
by Iain McIlwee | 15 Mar, 2022 | Main News Feed
New guidance has been published for UK Conformity Assessment Bodies (CABs) who are intending to subcontract tasks such as testing, certification or inspection. This process will limit the the need to test new products in the UK and Europe separately for the purpose of conformity marking (UKCA and CE Marking).
Overview of Guidance
Subcontracting is the act of contracting another body to do a task, which you have been appointed to perform, as part of the conformity assessment process. This is also commonly referred to as ‘outsourcing’. UK CABs can subcontract most tasks within the UKCA conformity assessment process, such as testing, certification or inspections. However, the decision on conformity itself must be made by a UK CAB.
If a CAB has an overseas subsidiary, the subsidiary to carry out the conformity assessment activities subject to the same conditions as using sub-contractors.
Subcontracting does not include when individuals are contracted-in as employees of a UK CAB (regardless of where they are employed). These individuals fall under the quality management system of that body.
There may be different conditions for products approved under the terms of a mutual recognition agreement (MRA) with the UK. The requirements for CABs are detailed within these agreements.
Note EU does not afford a reciprocal privilege to Notified Bodies for CE marking and this process will not impact legacy testing, where the lack of mutual recognition in the Exit Agreement prevents recognition of historic testing or Engineering Assessment Documents for some CE Market products (those covered by ACVP 3).
More information on sub-contracting is available on the Government website here
To access the FIS Brexit Toolkit click here
