Confused by HMRC’s Making Tax Digital (MTD)?
Liz Bridge at the Joint Taxation Committee has prepared an index and timeline to help you understand what Making Tax Digital really means, how it will affect you, quarterly reporting and any exemption rules. Find out more here in the latest edition of JTC Newsline.
Following the construction industry Brexit Contingency Planning Conference, the agreed actions covered were;
Below is an update on the actions agreed, and further information on the timeline for taking this forward.
Workforce
The Skills Working Group of the CLC, Chaired by Mark Reynolds, has established a “virtual” Brexit Contingency Group to focus on short, medium- and long-term skills actions. The Group has already met and is in the process of agreeing a report that will include recommendations and actions. This will outline what industry should be doing, and what our asks are of the Government. The Group will meet again next week to refine the recommendations and actions, and will issue an interim draft on the 15 February, with the aim of concluding this work and issuing a final report by Friday 22 February.
Import and Export of Goods
Significant progress has been made on arrangements for import and export of goods since the conference which will reduce the potential impacts of a no-deal scenario, for those firms that have taken action and followed the guidance published by HMRC.
To prepare, both importers and exporters should register for a Economic Operator Registration and Identification (EORI) number at www.gov.uk/hmrc/get-eori.
Importers
HMRC announced on the 4 February that in the event of the UK leaving the EU without a withdrawal agreement, Transitional Simplified Procedures (TSP) will be applied to imports. These will apply for at least 15 months (they will be reviewed after 3 and 6 months and there will be a 12 month notice period prior to their removal). Once registered, firms will be able to transport goods into the UK without having to make a full customs declaration at the border, and will be able to postpone paying their import duties.
Importers will be able to register for TSP online from 7 February at www.gov.uk/hmrc/eu-simple-importing. An EORI number is required to do this. For further guidance, including which ports TSP applies to, please go to www.gov.uk/hmrc/eu-simple-importing.
Firms wishing to receive regular updates on developments can register for HMRC’s email update service at www.gov.uk/hmrc/business-support select ‘business help and education emails’, then ‘EU Exit’. Non-VAT registered businesses should also go to www.gov.uk/hmrc/trade-with-the-eu for changes that affect them.
However, there are some controlled goods (e.g. alcohol, tobacco or explosives) regarding which further information will be required before importing, and where licences and other import procedures may apply. Details of these can be accessed through the following link (https://www.gov.uk/government/publications/uk-trade-tariff-import-prohibitions-and-restrictions/uk-trade-tariff-import-prohibitions-and-restrictions).
Exporters
After registering for their EORI number, exporters should register for the register for the National Export System at www.gov.uk/guidance/export-declarations-andthe-national-export-system-export-procedures.
Firms should also consider appointing a customs agent to make declarations on their behalf, or if this is not the right solution for the firm, but it is a regular importer and exporter, ensure someone within the firm is trained to make customs declarations, and buy any specialist software required that can link with HMRC’s customs systems.
Tariffs
Firms should also review what tariffs would apply to products in the event of the UK leaving the EU without a withdrawal agreement. Guidance on what tariffs will apply, and information about tariffs on individual products can be found at https://www.gov.uk/government/publications/classifying-your-goods-in-the-uk-trade-tariff-if-theres-no-brexit-deal/classifying-your-goods-in-the-uk-trade-tariff-if-theres-a-no-brexit-deal.
Construction Products Regulations
The Construction Products Association (CPA) has worked with other stakeholders to produce technical notes on the Construction Products Regulation and Registration, Evaluation, Authorisation an Restriction of Chemicals Regulation (REACH) in the event of a no deal Brexit. These are attached/can be accessed on the CPA website at https://www.constructionproducts.org.uk/publications/technical-and-regulatory/brexit-and-the-reach-regulation-under-a-no-deal-scenario/.
General Data Protection Regulation
Some firms in the construction sector may need to transfer personal data with other organisations or subsidiaries in the EU after the UK leaves. Rules governing the collection and use of personal data (data which includes personal details of an individual, or which would enable an individual to be identified on the basis of this), are currently set at an EU-level by the General Data Protection Regulation (GDPR). Under GDPR rules, organisations are only permitted to transfer personal data outside the EU if there is a legal basis for doing so. Organisations which will need to receive personal data from other organisations in the EU will need to take action to ensure those organisations can send them this information without breaching GDPR rules. Guidance on the action’s firms should take to enable the continued flow of personal data has been published by the Government. Details of this can be accessed at https://www.gov.uk/government/publications/data-protection-if-theres-no-brexit-deal/data-protection-if-theres-no-brexit-deal.
Communication with Government
The Chair of the CLC will be writing to the Construction Minister, Richard Harrington, to summarise the conclusions of the Conference and set out the actions that the industry is undertaking to prepare for a no deal Brexit, and the support that we would like from the Government. A copy of the letter will be published on the CLC website.
The winners of the 2019 Fit-Out Futures Awards were celebrated at the FIS President’s Lunch in London on Tuesday.
The event saw 300 members and their guests come together to see the winners revelaed in the delighful surroundings of Plaisterers’ Hall. Congratulations to all our winners and the shortlisted entrants.
WINNER: John Taylor – Stortford Interiors
The judges commented that John was clearly a talented tradesman and that he was also changing attitudes internally about the positive benefits that an apprentice can bring to his company. John was also praised for his understanding of the importance of his work and the need to follow guidelines. He continues to develop as a fantastic example of why the modern apprenticeship system will shape our industry for the future.
RUNNER UP: Danny Beadle – Pexhurst Services
Danny was recognised for his commitment to all aspects of the day-to-day site role, as well as his dedication to learning and improving his skill-set.
WINNER: Simon Broggio – Meronden
Simon is an exemplar of how someone can enter the construction sector as a labourer and with the right attitude and work ethic work their way up to take on a Level 6 Construction Site Managers course. He is already a natural leader and an asset to the finishes and interiors sector.
RUNNER UP: Richard Austen – Stortford Interiors
Richard was awarded runner-up due to his enthusiasm to adopt new ways of working and new technologies. He was also recognised for his ability to manage both his peers and his superiors.
WINNER: Matt Taylor – Astins
With more than 18 years’ experience in the industry, Matt was recognised for his never-ending energy and professionalism for design and to the sector.
RUNNER UP: Ed Kelly – ETAG Fixings
Ed was commended for his exceptional reliability, quality of work, initiative and professionalism, as well as his commitment to Etag’s work values.
Ray Deeks – G Cook & Sons
Ray was chosen as the recipient of this award for demonstrating a lifetime’s dedication to his trade. In particular, he was applauded for the amount of his own time he has committed to sharing his wealth of knowledge and experience with the wider industry.
The judges said: “We all owe Ray a vote of thanks for the legacy that he continues to leave.”
HMRC has announced that businesses will be able to use simplified declarations and postpone payment of duties under Transitional Simplified Procedures (TSP) if there is a no-deal Brexit (although there will be additional information needed for controlled goods). The measures will be reviewed after 3 to 6 months and businesses will be given 12 months’ notice if they are to be withdrawn.
Businesses can sign up for TSP online from 7 February at www.gov.uk/hmrc/eu-simple-importing but they will need an EORI number to do this. Further information, including which ports TSP applies to, is available at www.gov.uk/hmrc/eu-simple-importing. The list does include Hull, Tilbury, Dover, Immingham (Hull) and Felixtowe.
HMRC has written to all VAT registered businesses (copy letter here) so most construction firms and product manufacturers should have received this directly.
New regulations released in Scotland on 1 February 2019 mean that every household must have installed the following:
These new reglations extend to all homes the same requirements that are currently in force for private rented property and new builds.
Responsibility for meeting these obligations will fall to home owners and landlords.
The cost is estimated to be £200 per household, but this will vary according to what alarms are currently in place and the type of alarms to be fitted.
These new regulations come into force in February 2021.
A copy of the Scottish government announcement can be viewed here.
The Construction Leadership Council earlier this week convened a meeting of over 100 industry leaders, to develop sector contingency plans for a No Deal Brexit. The conference brought together firms from across the sector, including construction contractors from across the supply chain, house builders, product manufacturing and professional services, as well as trade associations and key construction clients.
Meeting in the Institution of Civil Engineers, participants heard from a range of speakers, from the Construction Products Association, the Port of Tilbury and Government Departments, on issues including the potential impact of a no deal Brexit, the import and export of goods, migration policy and the regulation of construction products. This was followed by a discussion on the key impacts, and what companies of all sizes from across the industry can do to prepare for the possibility of a No Deal Brexit.
The following actions were agreed by participants:
Andy Mitchell, CLC Chairman said:
“Whilst a No Deal Brexit remains a possibility, firms in the construction industry have a responsibility to their employees, clients and the firms in their supply chain to plan for this. The potential impacts of a No Deal Brexit for the industry would be significant – and today marked the first steps in the industry acting together to mitigate these.
“I am pleased that we were able to collectively agree actions that will help ensure the industry has access to the workers, products and materials that it requires to deliver, and to manage any disruption.
“The Construction Leadership Council is committed to supporting the industry to help coordinate and work with those who attended – and the wider industry, to ensure that whatever happens, the industry will be as well-informed and well-prepared as possible“.
Iain McIlwee, attending on behalf of the FIS Membership stated: “This was a useful event, but it underpinned how unprepared we really are. We are a resilient and adaptable sector, but need time to prepare and manage what could be some pretty major changes. My immediate concern is the cost of potential delays due to flow of materials and products and how this will be managed within existing contractual frameworks. Force Majeure is “unforeseeable circumstances that prevent a party from fulfilling a contract” and expert advice seems to interpret this to say that Brexit was not unforeseen and hence provides little protection. In debate it was suggested that these costs would be “borne and passed on” by the major contractors, which is not what the supply chain wants to hear. This is a point we are following up with BEIS and through both Build UK and CPA. The CLC is calling for the supply chain to pull together and this is certainly something that we need to manage. We will continue to flag this and other considerations in our Brexit Checklist and ask all members to raise any concerns they have so that we ensure we are leaving no stone unturned in helping our members adjust to our new normal.”
You can download the slides from the event below:
Recruiting safely and fairly – employing ex-offenders to address the skills gaps in construction
Enterprise Centre, Coventry University Technology Park,
Puma Way, Coventry CV1 2TT*
Thursday 14 March 2019, 09:00 – 13:00 (followed by networking lunch)
Facing a relatively low unemployment rate, and a tightening labour market, many employers in the construction industry are struggling to find people with the right talent, skills, abilities and mindset to fill their vacancies. Some also struggle to recruit and retain talent from excluded groups when accomplishing their S106 outcomes.
Over 11 million people in the UK (around 20% of the workforce) hold a criminal record. Many of these individuals may have committed relatively minor offences, come from disadvantaged backgrounds and have a wide-range of skills and abilities – yet they face immense barriers to working in construction.
Many employers also struggle to understand their legal rights and responsibilities when considering applicants from this vast potential talent pool. Some employers worry about a perceived impact on insurance, securing certain contracts or even reputational risks. Now, more than ever, employers need specialist support to navigate this complex area.
The Mind the Gap (MTG) Project is a three-year initiative commissioned by the CITB. A consortium of partners, led by Lendlease, aims to reduce skills gaps and improve S106 outcomes by providing construction industry employers with the knowledge, skills, training and support they need to recruit serving prisoners, offenders on licence and other people with criminal records who are motivated to work.
Nacro, one of the MTG partners, and a leading social justice charity is delivering a free half-day safer recruitment training session for HR professionals and others responsible for recruitment and retention decisions, to equip them with the knowledge and practical resources needed to confidently recruit ex-offenders, ensure their processes comply with recent changes to legislation and manage and mitigate any potential risks involved.
Who is it for?
HR professionals with responsibility for recruitment decisions, policy developments and workforce planning. It will also be relevant to in-house employment lawyers; as well as those with responsibility for safeguarding, staff retention and equality and diversity matters.
Benefits
By the end of this session you will:
• Understand how to recruit confidently and effectively from a talent pool of 11 million people
• Be able to improve the diversity of your workforce
• Understand how to minimise any potential or perceived risks that might be involved
• Learn how to avoid unnecessary failed recruitment costs
Learning objectives
▪ Understand and apply the relevant legislation that impacts upon recruitment and retention of people with criminal records (e.g. ROA 1974, DPA 1998/ GDPR 2018)
▪ Learn how to deal effectively with disclosure of criminal records
▪ Gather the relevant information in order to inform the risk assessment process.
▪ Understand how to interpret criminal record information in order to inform risk assessment processes
▪ Understand how to risk assess applicants/employees with criminal records in the context of safe recruitment and reputational business risks.
RSVP
To reserve a place or find out more information about the workshop, contact Dominic Headley on mobile: 07399 814 199 or email: dominic@dominicheadleyassociates.co.uk
*There is parking available at the venue.
CE Marking is driven by the Construction Products Regulations (CPR), which will have to change after Brexit. Thankfully, if you manufacture or import products for the UK market where CE Marking is mandatory (i.e. there is a Harmonised European Norm (hEn)) changes will be minimal for most. For products placed on the UK market after exit day there will be an equivalent UK Mark available if you use a UK Approved Body. If you use an EU Recognised notified body you can continue to use the CE Mark. If you are exporting to the EU, you will be required to use an EU based notified body. It is vital that you talk to your current notified body to understand how there status and how this will impact your product marking requirements. FIS and our umbrella body Construction Products Association will continue to monitor and report on any change in this area.
Information is included in our Brexit Checklist available here and MHCLG are also providing guidance specifically on the CPR here.
Respondents to the CPA State of Trade Survey Q4 2018 experienced a strong end to 2018, with 27% of heavy side manufacturers and half of light side manufacturers reporting a rise in sales. Growth in factory output is anticipated to rise further in the opening quarter of 2019, with 64% of heavy side firms and 38% of those on the light side expecting an increase in sales in the January-March period.
Members can read the full report here.
