News

Natural Resources Wales hit with £14.6m tax bill over IR35 failings

Published

8 months ago

October 25, 2025

Welsh Government confirms settlement following HMRC investigation

NATURAL Resources Wales has agreed to pay more than £14.6 million to HM Revenue & Customs after an investigation found historic failures to comply with off-payroll working rules, known as IR35.

Deputy First Minister Huw Irranca-Davies confirmed the settlement in a written statement issued on Friday (Oct 24). It brings to a close a year-long HMRC probe into how the environmental body managed contracts with freelance and agency workers.

The total liability of £14.6 million includes interest, while HMRC has also imposed a £2.9 million penalty, suspended for twelve months on the condition that Natural Resources Wales meets new compliance requirements.

The Welsh Government provided interim funding to cover an earlier “Payment on Account” to HMRC in 2024, ensuring the public body could meet its obligations while the investigation continued. Officials have now agreed a budget reduction plan to recoup the money from Natural Resources Wales over time.

Mr Irranca-Davies said: “These arrangements have been carefully developed to ensure they are affordable and minimise any impact on Natural Resources Wales’ ability to deliver its core functions and statutory responsibilities.”

The IR35 rules were designed to stop public bodies and companies avoiding National Insurance and income-tax liabilities by paying contractors through intermediaries when, in effect, they worked as employees.

Natural Resources Wales admitted in its own statement that “some aspects had been misinterpreted” and that “errors were made in how the employment status of some contractors was assessed.”

The organisation said it has since strengthened internal checks and “reviewed all processes to ensure ongoing compliance.”

The case highlights one of the largest known IR35 settlements in the Welsh public sector. The Herald understands that the issue dates back several years and relates to how consultants were engaged across multiple departments, including environmental regulation, flood management and forestry operations.

A Welsh Government source told The Herald the penalty “reflects the seriousness of the failings” but emphasised that HMRC accepted NRW’s full cooperation and commitment to reform.

The controversy adds to growing scrutiny over the financial management of arms-length bodies funded by the Welsh Government. It follows earlier questions raised by Senedd committees about governance standards and contractor oversight across devolved agencies.

While ministers insist the new settlement will not affect frontline environmental protection work, opposition parties have already demanded greater transparency over public-sector IR35 compliance.

Plaid Cymru’s finance spokesperson said the scale of the liability “shows how easily taxpayers can end up footing the bill for administrative mistakes.”

Natural Resources Wales employs more than 1,900 staff and manages forests, water quality, flood defences and environmental permits across Wales. In Pembrokeshire, the agency is responsible for key environmental assets including the Cleddau catchment, Milford Haven waterway, and Preseli forestry operations, meaning any financial pressure could have a direct impact on local conservation and flood-risk management work.

IR35 rules were first introduced in 2000 and tightened across the public sector in 2017. They require organisations to determine whether contractors should be treated as employees for tax purposes.

Crime

Man sent to Crown Court over alleged Cardigan cocaine and cannabis supply

Published

16 minutes ago

July 3, 2026

Court Reporter

A 24-YEAR-OLD man has been sent to Crown Court to face a series of alleged drug supply offences in Cardigan.

Harrison Casey, of Harebell Way, Brownsover, Rugby, appeared before Aberystwyth Magistrates’ Court on Wednesday (Jul 2).

He faces six charges relating to alleged offences at Bridge Street, Cardigan, between April 7 and April 24, 2023.

The charges include being concerned in the supply of cocaine, a Class A drug, and being concerned in the supply of cannabis, a Class B drug.

Casey is also accused of possessing cannabis with intent to supply, possessing tetrahydrocannabinol with intent to supply, being concerned in an offer to supply THC edibles, and possessing flualpazolam, a Class C drug.

There were no pleas to the charges at this stage.

Magistrates sent the case to Swansea Crown Court for trial under Section 51 of the Crime and Disorder Act 1998.

Casey was granted unconditional bail and is due to appear at Swansea Crown Court on August 3 for a plea and trial preparation hearing.

Climate

Floating wind demonstration project off Pembrokeshire coast granted marine licence

Published

1 hour ago

July 3, 2026

Tom Sinclair

The Llŷr project could see up to ten floating turbines installed 35km off the coast, with power brought ashore at Freshwater West

A MARINE licence has been granted for a floating offshore wind demonstration project off the Pembrokeshire coast.

Natural Resources Wales has approved the licence for Llŷr Floating Wind Limited, allowing the Llŷr Floating Offshore Wind Farm Project to move forward.

The test and demonstration facility is proposed around 35km off the Pembrokeshire coast, off Linney Head, and is among the first demonstration-scale floating wind projects in Wales.

The scheme could include up to ten turbines, each reaching up to 300 metres above sea level, together with floating platforms, mooring lines and anchors.

Up to two offshore export cables, around 50km in length, are planned to bring electricity ashore at Freshwater West.

Ruth Jenkins, Head of Planning and Permitting Services and Marine Operations at Natural Resources Wales, said the organisation had a role to play in supporting the move towards clean energy while ensuring projects were developed responsibly.

She said: “At Natural Resources Wales, we have a unique opportunity to tackle the climate emergency across a range of sectors and industries. This includes using our licensing powers to support Wales’s transition to clean energy.

“As a regulator and advisor, we ensure energy projects are developed sustainably and with respect for the environment and local communities. At the same time, we play a vital role in enabling innovation in green energy, helping projects move forward safely and responsibly.

“Wales has enormous potential as a leader in renewable energy, and we’re committed to supporting the benefits that can come from these projects as we move towards net-zero targets.”

Natural Resources Wales is the Marine Licensing Authority on behalf of Welsh Ministers.

Full details of the marine licence granted for the Llŷr Floating Offshore Wind Farm Project are available on the NRW public register.

News

Free Pembrokeshire woodland event to explore language, landscape and belonging

Published

11 hours ago

July 3, 2026

Tom Sinclair

A FREE woodland event in north Pembrokeshire will invite people to reconnect with the Welsh language, local landscape and cultural traditions through storytelling, creativity and time spent in nature.

Dod yn ôl at fy nghoed / To Return to My Trees will take place on Friday, July 17, from 10am to 4pm, at Canolfan Llwynihirion and Allt Tŷ Canol, near Brynberian.

The event is being hosted by Cwm Arian as part of the Preseli Woodlands Project and will be led by Welsh Druid, author and celebrant Deborah Rose Hālani.

Participants will spend time in the ancient woodland of Allt Tŷ Canol, exploring how Welsh language, landscape, folklore and local traditions have shaped one another over generations.

Organisers say the day is open to everyone, including those reconnecting with their own heritage, people learning about Welsh culture for the first time, or anyone who wants to build a deeper connection with the place they call home.

Sophie Jenkins, Outreach and Engagement Coordinator at Cwm Arian Renewable Energy, said: “Conservation isn’t only about protecting species and habitats. It’s also about nurturing our relationship with the places we live.

“The Welsh language, our stories and our landscapes have evolved together over centuries, yet many people feel disconnected from one or all of those things.

“Whether someone is rediscovering a part of their own heritage or beginning a relationship with Cymru for the first time, we hope this day creates space to connect more deeply with the land, with culture and with community.”

The Preseli Woodlands Project brings together nature restoration and cultural heritage through activities designed to help people experience, understand and care for Pembrokeshire’s woodland heritage.

The project is a partnership between Cwm Arian Renewable Energy, the South and West Wales Wildlife Trust and Pembrokeshire Coast National Park Authority.

It is funded through the Welsh Government’s National Forest for Wales Landscape Scheme 2025–2027 and administered by WCVA.

The event is free, but places are limited and advance booking is essential.