« Tax rates to blame for UK exodus. | Main | IT companies aiding Startup Britain campaign »
Sunday
May012011

Builders hit from all sides.

While the Office for National Statistics (ONS) reports overall growth  in the UK of 0.5% for the first quarter of 2011, it reported a very disappointing set of figures in the area of construction. The ONS reports that construction declined by 4.7% although this figure is likely to be revised. While the very harsh British winter can account for some of the downturn some industry experts have responded with more than a little surprise. The Chief Executive of the Construction Products Association, Michael Ankers, is quoted as saying: "Today's GDP estimate includes a fall in construction output of 4.7% in the first three months of the year. "The scale of this fall in the official figures is extremely surprising and is not consistent with information from construction industry surveys or the experience of the companies and sectors that the Association represents".

Mr Ankers remains optimistic for the future of the UK construction industry although he and many others do not envisage any meaningful growth returning to the sector until 2013. He goes on: "As a result, the Association's latest construction forecasts, published in mid April and put together by representatives from across the construction industry, anticipate a fall in output of 1% this year compared with 2010 and a further 2% fall in 2012. We are not anticipating a return to growth until 2013, and inevitably this will be a constraint on recovery in the wider economy as construction accounts for nearly 10% of GDP,".

In other news, small and medium sized builders (SME's) have received "Amnesty" warning letters from Her Majesty's Revenue & Customs (HMRC). The letters provide details of the new amnesty that is being roled out. The scheme reduces penalties to 10% and is restricted to a maximum  20% of the tax bill if you  declare undisclosed income by 31 August. The current system imposes penalties of up to 100% of the tax bill and can result in criminal prosecution. While the scheme is aimed at plumbers, HMRC may extend it to other construction industry trades and have no problem with other traders who apply under its provisions. People wishing to apply have until 31 May to declare and must provide details by 31 August. HMRC have warned that after 31 August full investigation and the standard penalty impositions will apply.

Do you have problems with CIS registration? Is your gross payments certificate working for you? Are you currently the subject of an HMRC enquiry and need some help? Then contact St Matthew e-Accountants. We have trained experts in this and many other areas. check out www.stmworldwide.com   

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>