Business
HMRC investigations into large UK businesses hit five-year low
The number of large UK businesses under investigation by HMRC for potential tax underpayment has dropped to a five-year low, with only 790 companies investigated in 2022-23. This significant decline has prompted questions about HMRC’s strategy and resource allocation in enforcing tax compliance among the UK’s largest corporations.
Decline in investigations amid resource constraints
Historically, HMRC has investigated about half of Britain’s 2,000 largest companies at any given time. However, recent data shows a steady decline in these probes, with 820 companies investigated in 2021-22, down from nearly 1,000 in 2018-19.
Several factors have contributed to this decline. The COVID-19 pandemic temporarily paused some investigations as HMRC redirected resources to more urgent issues. Additionally, ongoing resource constraints and a shortage of skilled investigators have compounded the challenge, especially given the complexity of large business tax cases.
Despite these challenges, HMRC has prioritised high-value cases to boost tax recovery. This targeted approach, aided by technology, helps HMRC maximise the impact of its limited resources, even with fewer investigations. Businesses can maintain compliance by using tools like HMRC approved payroll software, which ensures accurate and timely tax reporting.
Increased compliance yields
Despite the decline in investigations, HMRC has seen a significant rise in compliance yields—the tax revenue recovered due to compliance efforts. In 2023-24, the yield increased by £1.6 billion compared to 2018-19, reaching £11.4 billion. This growth highlights HMRC’s focus on high-value cases with substantial tax recovery potential.
Tax experts generally agree with HMRC’s reasoning for the decline in investigations, acknowledging that the agency is using its resources more effectively. Additionally, investigations are being completed faster, with the average inquiry now taking 21 months, down from 36 months the previous year.
Future outlook and legislative impact
Looking ahead, analysts anticipate an increase in investigations during the current parliament, especially with the Labour Party’s plan to invest an additional £855 million annually into HMRC to tackle tax avoidance.
The “notification of uncertain tax treatments” law, introduced in April 2022, is expected to impact future investigations by requiring large businesses to inform HMRC of uncertain tax positions. This enables HMRC to better target its efforts, aiming to further reduce the legal interpretation tax gap, which has already decreased from £6 billion in 2019-20 to £4 billion in 2022-23.
Conclusion
Despite the decrease in the number of investigations, HMRC’s refined approach has proven effective in increasing tax compliance among large UK businesses. With additional funding and new legislation in place, the agency is poised to continue improving its oversight and ensuring that large businesses pay their fair share of taxes.
Business
Council denies responsibility for The Range store’s snub of Haverfordwest
THIS week Pembrokeshire County Council has refuted claims circulating on social media that it was responsible for The Range’s decision not to open a store in the former Wilko unit in Haverfordwest.
The rumors, which gained traction on Facebook this week, suggested that the discount retailer pulled out due to issues related to car parking charges in the nearby Perrots Road car park.
A council spokesperson addressed the situation, on Wednesday (Sept 18) telling The Herald: “There is absolutely no truth in the rumour that The Range decided not to take on the former Wilko store in Haverfordwest due to car parking charges in the nearby Perrots Road car park. The Council is unaware of where this rumour has come from.”
This statement comes in response to a flurry of social media activity, where several residents expressed their disappointment and frustration. One user, Stephen Hughes, sparked conversation with a post claiming, “Range wanted to go to Wilko and the council refused free parking at Haverfordwest absolutely shocking.” The post received multiple comments, reflecting the growing frustration among the community.
Chris Wilson said: “The council seemed determined to wreck Haverfordwest,” while Julie McIntosh added, “OMG we will never have them now.”
These sentiments echo a broader dissatisfaction with the current state of the Haverfordwest town centre.
The council, however, has made it clear that The Range’s decision was independent of any car parking policies. “While The Range ultimately decided not to proceed, the Council is currently in detailed discussions with a prospective tenant for the unit and very much hope to have the building brought back into use as soon as possible,” the spokesperson added.
The speculation on social media highlights the ongoing concerns about the town’s retail prospects and the council’s role in facilitating or hindering economic development.
Recent reports indicate that The Range is expanding in the UK, with five new branches opening by Christmas in locations such as Walkden, Cwmbran, Leamington Spa, Chelmsford, and Oswestry.
Additionally, The Range’s parent company, CDS Superstores, has announced plans to reopen up to 300 Wilko stores after acquiring the brand, with five concept stores expected to open by Christmas 2024
Despite Haverfordwest now being off the list, it remains to be seen how the situation will unfold and whether the prospective tenant will bring a new chapter to Haverfordwest’s retail scene.
Business
Recruitment drive for Ledwood as company looks to fill 40 roles
A PEMBROKE DOCK-based engineering, fabrication and construction company is recruiting with up to 40 role available.
Ledwood has launched the recruitment drive as it prepares to scale-up the delivery of key projects throughout the UK.
All required for client projects in the energy production and processing industries are welders, mechanical fitters, pipe fitters, riggers and platers.
Schemes include South Hook and Valero in Pembroke Dock, Hinkley Point C in Somerset, the Fawley TAR turnaround project in Southampton and the VINCI joint venture (EVT) project at Isle of Grain in Kent.
Nick Revell, managing director of Ledwood Mechanical Engineering, said: “With an extensive fabrication facility at Pembroke Dock, we deliver complex engineering projects throughout the UK. Unprecedented demand means that we now have vacancies for both qualified personnel and those looking for apprenticeships. We hope these opportunities will be of interest to those seeking new careers, particularly given the demise of Tata Steel in Port Talbot, and would also like to hear from anyone looking for an apprenticeship.”
Ledwood specialises in the delivery of complex projects in the process and energy sectors.
Business
ECITB welcomes new Chair for the Wales Regional Forum
ALTRAD’S Mark Poole has been appointed Chair of the ECITB Wales Regional Forum and a Council Member after approval by the Board of the Engineering Construction Industry Training Board (ECITB).
Mark, who is Learning and Competence Manager at Altrad, is already a member of the ECITB’s CCNSG Safety Passport Committee and also spent eight years with the industry-led skills body in three different roles between 1998 and 2006.
More recently, Mark has played an instrumental role in creating development pathways at one of the largest employers in the engineering construction industry (ECI), having joined Altrad in 2020.
For example, Mark put in place a supervisory management development pathway for Altrad. He also played a leading role in helping trial and introduce the ECITB’s Work Ready Programme, with Altrad becoming a partner in several locations across the UK to create employment opportunities for new entrants.
He said: “I feel proud and privileged to have been elected by ECITB contractors to represent their interests in Wales. I intend to do my utmost for them.”
Mark’s industry experience spans more than four decades. He started out as a 16-year-old mechanical fitter apprentice, while he achieved his first trainer Level 3 qualification in 1988.
Since the late 1980s, Mark’s career has been rooted in the world of training, including close links to Wales, where he co-founded the Cardiff-based charity TRACK 2000, which provided training for the socially disadvantaged.
During the 1990s, Mark held the role of Training and Enterprise Manager of the Vale of Glamorgan Council and was the vice-chair of the region’s Training Provider Association.
Mark joined the ECITB in 1998 as a Senior Development Advisor within the Product Development Team, where he developed the ECITB’s flagship Supervisory Management Training & Development (SMTD) programme.
He went on to become Head of Partnering and Funding, creating the UK-wide initiative ‘Ambition Energy – Engineering Construction’, and then Regional Operations Manager with responsibility for Wales, the Midlands, South West, South Coast, London Head Offices, East of England and Southern North Sea.
From 2006 to 2020, Mark was founding Managing Director of Phoenix Training Solutions, a leading training provider of the ECITB. During this time, Mark developed numerous ECITB national courses and assessment tests, such as IOSH Engineering Construction.
Mark was also a leading safety training consultant for the governments of Dubai and Abu Dhabi, whilst his company was a preferred training provider on Hinkley Point C (HPC) for IOSH Construction and ILM Nuclear Safety Culture training; both courses Mark had developed.
Now with Altrad, Mark has taken on operational training management for Altrad’s Wales and Southern region.
He added: “Whilst at the ECITB, I directly influenced regionalisation and the establishment of regional fora and chairs.
“Put simply, the ECITB has become part of my professional DNA since 1998 and I feel a sense of loyalty to the team it employs and contractor community it is there to serve.
“Having the experience from within the ECITB, externally as a leading training provider and now within the industry’s largest engineering services contractor, I will have a lot to bring to the table for the wider benefit of all within the region.”
ECITB Chief Executive Andrew Hockey says the link to industry – through the ECITB’s Board, Council and regional fora – ensures the organisation fully understands the needs of employers in the ECI.
He said: “Our regional fora bring industry expertise to our work while helping us forge better connections in the ECI across the regions.
“Mark’s industry experience will be invaluable in identifying and addressing skills needs in Wales and driving our work forward in the region.”
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