by Clair Mooney | 19 Nov, 2020 | Main News Feed
Government Response to the consultation on the Energy Performance of Buildings: Changes to the Energy Performance of Buildings Regulations 2012 No. 3118
- This consultation sought views on the proposals to amend the existing regulations for domestic and non-domestic buildings to improve their energy efficiency and provide a reduction in their carbon emissions by increasing the threshold of the current air-conditioning inspection regime to include only air-conditioning systems and combined air –conditioning and ventilation systems with an effective rated output of more than 70kW
- This would lead to savings for some building owners but at some cost to energy assessor businesses while recognising that some carbon savings from smaller systems would be lost
Government Decision
- The UK Government intends to diverge from the European Commission’s proposal and retain the existing threshold for the inspection of energy efficiency of air-conditioning systems and combined air-conditioning and ventilation systems that have an effective rated output of more than 12kW.
- Government will be making a minor technical amendment to the existing 2012 regulations to ensure that the capabilities of air-conditioning systems and combined air-conditioning and ventilation systems are considered to optimise the system’s performance under typical operating conditions.
Stakeholders Responses leading to the above decision
- Majority of stakeholders favoured retaining the existing regime
- A significant improvement in enforcement and sanctions would be required for greater comparative savings from targeted larger units to be realised
- Responses also favoured the retention of the opportunity for inefficient lower output air-conditioning systems to be identified and the wider energy efficiency advice that building owners received when inspections are undertaken.
- The cost benefit analysis within the wider climate change targets did not warrant a change
A copy of the Government’s response can be downloaded here.
by Clair Mooney | 18 Nov, 2020 | Main News Feed
FIS Associate Member Citation is running a webinar entitled ‘Navigating Business Change’, which is aimed specifically at businesses in the construction and trades sector.
This webinar aims to assist members in getting to grips with the latest changes and guidance covering key HR and Health & Safety Considerations, such as how to pass a COVID-Secure inspection and managing employees and long-term homeworking.
Date: Wednesday 25 November
Time: 10am
How to join: REGISTER NOW
The webinar is free of charge, however spaces are limited so we suggest members register in advance of the session. The webinar will cover important topics such as those listed below, and there will be an opportunity to put questions to Citation’s experts on the day.
- How to successfully pass a COVID-secure inspection, in light of the Health & Safety ramping up their spot checks;
- Ensuring a reasonable and cautious approach is taken when handling COVID-related issues;
- Challenges managing your employees in the workplace, the implications of travel-related quarantine periods for employers, long-term homeworking, and employee wellbeing;
- The Good Work Plan and its impact on using casual staff
- The importance of having good HR and Health & Safety foundations in place, such as policies, contracts, handbooks and risk assessments
They will be on hand to answer your business-specific queries, so come along armed with any questions you may have.
We really hope you can make it.
by Clair Mooney | 18 Nov, 2020 | Main News Feed
We know that the Covid-19 outbreak has had a seismic effect on the economy, and that some apprentices have been made redundant without completing their apprenticeships, while others are at risk of redundancy. To help provide guidance to both employers and apprentices facing redundancy, the National Apprenticeship Service has introduced a Redundancy Support Service for Apprentices.
The service provides clear, accessible advice and guidance to individuals on the impact of redundancy, their options and next steps. There will also be opportunities to help redundant apprentices to identify new apprenticeship and employment opportunities, and, where they are eligible, complete their current apprenticeship.
The service is made up of three main elements:
• Providing apprentices with advice and guidance on the impact of redundancy
• Signposting apprentices to local and national support services
• An apprenticeship vacancy sharing service to make redundant apprentices aware of new opportunities
If you are aware of any employers who would like to recruit a redundant apprentice or offer new apprenticeship opportunities, please ask them to visit Hiring an apprentice who has been made redundant or call 0800 015 0600 to find out more.
If you are aware of any apprentices who have been made redundant please encourage them to visit Facing redundancy during your apprenticeship or call 0800 015 0400 to speak to an adviser.
More information is available at https://help.apprenticeships.education.gov.uk/hc/en-gb/articles/360015641099-Redundancy-Support-Service-for-Apprentices
by Clair Mooney | 18 Nov, 2020 | Main News Feed
The Government is proposing changes to the Construction Industry Scheme (CIS) to be introduced from April 2021.
These include giving HMRC the power to amend CIS deductions in the event of errors or omissions and requiring businesses to apply the CIS when construction expenditure exceeds £3 million over the preceding 12 months. Exemptions to CIS deductions will also be limited going forward and there will be penalties for providing false information.
Proposed revisions in detail
CIS set-off amendment power
Some sub-contractor companies are entitled to set CIS deductions suffered in-year against their employer liabilities as provided by section 62(3) FA04 and regulation 56 S.I. 2005/2045. Where, upon challenge from HMRC, the sub-contractor employer cannot provide satisfactory evidence to support the CIS deductions claimed, and when asked the employer does not amend the CIS entry on their EPS within a certain timeframe, HMRC will instead amend the CIS deduction figure claimed on an EPS. The HMRC amendment will match the CIS deductions sum supported by any evidence held by or provided to HMRC.
HMRC will remove the claim altogether where there is no evidence of any CIS deductions in respect of that company or where the employer is not entitled to set-off in this way. The employer liabilities will be recalculated following the amendment. Where HMRC has to amend the CIS credit claimed on an EPS, the employer may also be prevented from making further CIS set-offs in the same tax year. HMRC’s new powers to amend set-off claims and prevent further set-off claims will be decisions subject to review and appeal, unless the claimant is not a sub-contractor company suffering deductions under the CIS. The new powers will be contained in amendments to section 62 FA04, and the operative detail will be contained in regulations by way of amendments to S.I. 2005/2045.
Cost of materials
The current rule regarding the cost of materials to be taken into account by a contractor when operating the CIS on a payment to a sub-contractor is set out at section 61(1) FA04. This provision must be read with the definitions of a “construction contract” at section 57 FA04 and of a “contract payment” at section 60 FA04. The newly substituted provisions of section 61 FA04 will clarify that, on making a contract payment to a sub-contractor, the contractor must deduct a sum from the payment which is equal to the relevant percentage of the net payment. In calculating the net payment, the contractor must work out the amount of the contract payment less deductible materials costs. A materials cost will only be deductible if it represents the direct cost of materials purchased by a sub-contractor in respect of that particular contract. The change to these provisions will ensure that it is clear that only the sub-contractor directly purchasing materials to fulfil their own contract with their contractor is entitled to a reduction to account for materials costs from the gross contract payment before the CIS deduction is calculated.
Deemed contractors
Section 59 FA04 sets out the rules for bringing deemed contractors into the CIS. The general rule to determine whether a non-construction business has to operate the CIS is found at section 59(1)(l) FA04. It requires a turnover threshold for expenditure on construction operations to be met, and that the business reviews this expenditure at the end of each period of account. If average annual expenditure on construction operations exceeds £1 million in each of the last 3 years, the business has to operate CIS on any construction expenditure from the start of the next period of account. When average expenditure is less than £1 million in each of three successive years the business no longer has to operate the CIS on construction expenditure: see section 59(3) FA04. The new rules will require a business to monitor construction expenditure more regularly. When the cumulative expenditure on construction operations exceeds £3million within the previous 12 month period, the business will have to register for the CIS as a contractor (if not already registered) and begin operating the CIS on their next payment to a sub-contractor for construction operations. Deemed contractors will be able to stop operating the CIS when expenditure on construction operations falls below £3m within the previous 12 month period, or when no further payments on construction operations (including retention or management/administration payments) are expected to be made under that or any other construction contract.
CIS registration penalty
HMRC can penalise a person for providing false information when registering for payment under deduction under the CIS or for GPS (section 72 FA04). This penalty applies only to the individual or business to whom the registration applies. The scope of this penalty will be expanded to apply to a wider group of individuals or companies who are able to exercise influence or control over a person who is registering for the CIS, this will include agents, directors, company secretaries, or anyone HMRC believes is in a position to exercise influence and control over the business and/or the person making the CIS registration.
Such persons will be liable to a penalty in two circumstances:
- where they themselves make a false statement or furnish a false document for the purpose of enabling another individual or business to be registered or
- where they encourage an individual or business to make a false statement or furnish a false document for the purpose of enabling themselves to be registered for the CIS
The changes to primary legislation to deliver this measure will be published for consultation alongise this TIIN.
If you have any feedback or concerns, please send your comments to iainmcilwee@thefis.org.
by Iain McIlwee | 17 Nov, 2020 | Main News Feed
The Secretary of State has written to a number of sectors with the top asks that businesses within those respective sectors should take, as part of their preparation for EU transition. These letters have been issued through Companies House. I attach the construction letter which has started to permeate through the sector.
The full text is provided below:
Urgent message from the Business Secretary
Are you ready for new rules for business with the EU?
There is just over a month to go until the end of the transition period and there will be new rules to follow from 1 January 2021 onwards. As Business Secretary, I urge you to ACT NOW to avoid your business operations being interrupted when the transition period ends.
As a business in the construction sector, you can find out what you need to do by going to gov.uk/construction-2021. The top actions you can take now to prepare are:
- Check the new rules on importing and exporting goods between the EU and Great Britain from 1 January 2021. Different rules will apply in Northern Ireland.
Your business could face delays, disruption or administrative costs if you do not comply with new customs procedures from 1 January 2021.
- Use GOV.UK to identify changes affecting manufactured goods, such as new marking requirements or approvals needed, to ensure your business is ready to sell them in the UK and EU.
You may not be able to sell your goods in the UK and the EU from January 2021.
- If you are planning to recruit from overseas from 1 January 2021, you will need to register as a licensed visa sponsor.
You may not be able to legally hire people from outside the UK if you do not have a licence. New employees from outside the UK will also need to meet new job, salary and language requirements. Irish citizens and those eligible under the EU Settlement Scheme are not affected.
- If you are moving goods into, out of, or through Northern Ireland, check the latest guidance.
At the end of the transition period, the Northern Ireland Protocol comes into force. There will be special provisions which only apply in Northern Ireland so if you move goods into, out of, or through Northern Ireland make sure you check the latest guidance at: gov.uk/northern-ireland-trade
THE CHANGES CAN TAKE LONGER THAN YOU THINK, SO START TODAY
The Government is providing a range of support, including webinars to walk you through the changes. These are available to watch on demand at: gov.uk / transition-webinars. You should also check with your suppliers and customers that they are taking action.
These are challenging times, but the transition period is ending on 31 December 2020 and there will be NO EXTENSION . Unless you take action, there is a risk your business operations will be interrupted. The Government will be there to help you to take advantage of the many new opportunities that being an independent trading nation will bring.
Yours sincerely,
The Rt Hon Alok Sharma MP
Secretary of State for Business, Energy & Industrial Strategy
The transition website can be accessed here
You can access the FIS Brexit Toolkit here
by Iain McIlwee | 17 Nov, 2020 | Main News Feed
The Government has added further guidance on the closure of non-essential businesses to include showrooms open to the public for products used in homes, including bathrooms, kitchens and glazing.
The updated guidance does not affect construction sites, manufacturers, storage & distribution facilities or builders merchants without showrooms.
We are fully aware that changing guidance midway through a lockdown, particularly after clarification was sought on this specific issue, is not helpful and have specifically requested that this does not happen in future.
The full guidance is here and key points from the guidance which may be useful are:
- It is for each business to assess whether they are a business required to close having considered the guidance and Regulations.
- Hardware stores and builders merchants (such as tools, timber, paint, plumbing and glass) can remain open. Where these stores contain showrooms in distinct sections, the showroom area should be closed to the public.
- Showrooms for products used in homes, including bathrooms, kitchens and glazing should be closed to the public.
- All businesses may continue to offer delivery and click and collect services (where items are pre-ordered and collected without entering the premises). People can also leave home to collect or return orders from these businesses.
- Premises are not closed to staff or other authorised personnel needed to maintain them, secure them, or to prepare them to reopen.
- Tradespersons who need to visit other people’s homes for their work can continue to do so and should follow the safer working guidance.
For all your COVID updates, visit the FIS COVID-19 Hub
by Iain McIlwee | 16 Nov, 2020 | Main News Feed
New guidance has been published on declarations required if you bring or receive goods into Great Britain or Northern Ireland after 31st December 2020.
Bringing goods into Great Britain
From Northern Ireland
For most goods no declarations will need to be made. Guidance on this will be published at a later date.
Check if you need to make a declaration when the goods leave Northern Ireland.
From the EU
Check if the goods are controlled.
For controlled goods a declaration will need to be made when the goods arrive.
If the goods are not controlled find out the rules for declaring goods brought in from the EU from 1 January 2021.
From outside the EU
For all goods:
- an entry summary (safety and security) declaration must be submitted before the goods arrive
- a declaration will need to be made when the goods arrive
Bringing goods into Northern Ireland
From Great Britain
For all goods:
- an entry summary (safety and security) declaration must be submitted before the goods arrive
- a declaration will need to be made when the goods arrive
From the EU
Declarations are not needed for any goods.
From outside the EU
For all goods:
- an entry summary (safety and security) declaration must be submitted before the goods arrive
- a declaration will need to be made when the goods arrive
Moving goods through Great Britain and Northern Ireland
Common Transit may affect the declarations that need to be made.
Tariffs on goods
Guidance about any tariffs on goods moving between the UK and EU will be published at a later date.
This advice is taken from the Government website Brexit Transition
FIS is trying to consolidate and prioritise information via the FIS Brexit Hub. To access the FIS Brexit Hub click here.
by Clair Mooney | 16 Nov, 2020 | Main News Feed
In an open letter to the construction sector, The RT Hon Alok Sharma MP, Secretary of State for Business, Energy & Industrial Strategy has paid tribute to the efforts of the construction sector in supporting the UK economy in difficult times. The full text from the letter is displayed below:
To everyone working in the construction sector
On 31 October, the Prime Minister announced further measures in England to curb the spread of Coronavirus. From 5 November, people may only leave home for specific reasons, including for work, if you cannot work from home. The Prime Minister explained that workplaces should stay open where people cannot work from home, for example in the construction or manufacturing sectors.
The construction sector, which is a key part of our economy, remains open. Where it is essential to travel to your place of work to do your job, you should continue to do so. Building merchants and hardware stores will be able to stay open to support this as normal or through click-and-collect services.
The Government continues to update our safe working guidance. Updated guidance for England for working from your place of work from 5 November is available on https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19
During this difficult Autumn, I want to pay tribute to you and express my admiration for all the work you are doing. Whether working on large or small construction sites, in peoples’ homes across the country, in builders’ merchants, designing and project managing schemes or producing construction and mineral products, you are making an invaluable contribution in supporting the economy.
Since the outset of the pandemic in March, you have performed a vital role. In the past six months we have seen the industry build the Nightingale Hospitals, accelerate the delivery of infrastructure projects, support vital public services and help the country adapt buildings to become Covid-Secure. Whilst doing this, the industry has itself had to innovate and adapt, changing the way it operates on sites, finding more efficient ways of delivering projects, and collaborating effectively throughout the supply chain.
My Department and I are in regular contact with industry leaders about the risks, issues and challenges you face.
Thank you again to everyone operating in the UK construction sector. You are making a hugely valued and critical contribution to our country.
Yours sincerely,
THE RT HON ALOK SHARMA MP
Secretary of State for Business, Energy & Industrial Strategy
You can download a copy of the letter here – https://www.gov.uk/government/publications/coronavirus-covid-19-letter-to-the-construction-sector-november-2020
by Iain McIlwee | 13 Nov, 2020 | Main News Feed
The latest phase of the Grenfell inquiry has seen the material supply and specification process under close scrutiny. The suppliers faced claims of “clever marketing” being used to exploit confusion within the regulatory framework and mask product shortcomings to mislead specifications
The three main companies in focus were Arconic, which made the cladding panels, and Celotex and Kingspan, which made the insulation used.
A particularly concerning revelation raised was that Kingspan’s have now confirmed that tests, carried out in 2005, and again in 2014, were “not representative of the K15 product that had been sold”. Kingspan have been heavily criticised through the Inquiry and subsequently through the National Media that, despite requests through the Inquiry made in 2019 to withdraw the test certification for the K15 product used in Grenfell, the company have only formally informed fire engineers in recent weeks that its test certification for the K15 product used at Grenfell should be withdrawn.
Arconic were also accused of having manipulated testing. In this case the accusation was that they had tested a riveted panel, rather than the cassette panel used on Grenfell – to gain a higher ‘class B’ fire rating than the ‘class E’ the cassette was rated. Internal emails from Celotex disclosed to the Inquiry also appeared to confirm that the product should not be used behind most cladding panels because it would burn.
Fingers of blame through the Inquiry and statements saw the manufacturers turning on one another with the intense competition between Kingspan and Celotex being used to drive the sales teams. The product manager for Celotex was tasked to lead a rebrand and development of a Celotex insulation product range that would enable the firm to compete against Kingspan in the market for high-rise buildings was a 23 year old Business Studies Graduate. Concerns were levelled at individuals about whether they understood the scope of the product with the Sales Manager at Celotex admitting at the time he did not realise that he did not appreciate “at the time” that the greater depth of insulation required for the Grenfell project moved outside the scope of the Celotex test evidence.
As a result of these findings, the Inquiry has been asked to give consideration to whether an urgent recommendation should be made to the government before the end of the inquiry’s second phase to review the premise of its building safety programme.
Full transcripts of the Grenfell Inquiry Hearings are available here.
The excellent BBC Sounds Summaries of the Grenfell Inquiry are available here.
Details of the FIS PPP (Product Process People) Quality Framework are available here
