News

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

Published

3 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 charged with attempted murder after Carmarthen park incident

Published

1 hour ago

February 4, 2026

Tom Sinclair

57-year-old due in court following alleged knife and stalking offences

A MAN has been charged with attempted murder following a serious incident in Carmarthen town centre last week.

Dyfed-Powys Police confirmed that James McKenna, aged 57, from Carmarthen, has been charged with attempted murder, possession of a bladed article in a public place, and stalking.

The charges relate to an incident in Carmarthen Park on Thursday (Jan 29), which prompted a significant emergency services response and caused concern among residents.

Police have not yet released full details of the circumstances, but officers were seen in and around the park area for several hours following the incident while enquiries were carried out.

McKenna is due to appear before Llanelli Magistrates Court on Thursday (Feb 5).

The Herald understands the case involves allegations of both violence and targeted behaviour towards an individual, with stalking listed among the charges.

Public concern

Carmarthen Park is a popular and busy public space used daily by families, dog walkers and joggers, and incidents of this severity are rare.

The news has prompted concern locally, particularly as the alleged offences include possession of a knife in a public place.

Residents have previously raised questions about safety in parks and open spaces across west Wales, especially during darker winter evenings.

Court proceedings

At this stage, the charges remain allegations and the case will now proceed through the courts.

Magistrates will decide whether the case is sent to Crown Court due to the seriousness of the attempted murder charge.

Further details are expected to emerge during Thursday’s hearing.

The Herald will be attending court and will provide updates as they become available.

Crime

Sex offender jailed after living off grid in Pembrokeshire and refusing to register

Published

2 hours ago

February 4, 2026

Court Reporter

Man walked into police station after months avoiding authorities

A CONVICTED sex offender who told police he intended to live “off grid” rather than comply with legal monitoring rules has been jailed after handing himself in at a Pembrokeshire police station.

Christopher Spelman, aged 66, of no fixed address, appeared for sentence at Swansea Crown Court after admitting breaching the notification requirements of the sex offenders register.

The court heard Spelman was released from prison in Dorset on July 4 last year but immediately refused to provide police with an address, despite being legally required to do so within three days.

Instead, he indicated he planned to buy a tent and live outdoors.

Prosecutor Brian Simpson said officers subsequently launched a nationwide search when Spelman failed to make contact with police. Public appeals were issued and his case featured on the television programme Crimewatch.

Detectives believed he had been travelling around the UK using public transport and staying at campsites. He was known to have links to several areas including Merseyside, Manchester, Devon, Cornwall and Hampshire.

His whereabouts remained unknown until January 3 this year, when he walked into Haverfordwest police station and was arrested. It is unclear how long he had been in Pembrokeshire.

Spelman previously served seven years in prison after being convicted in 2014 of 12 counts of sexually assaulting a girl under the age of 14. He was placed on the sex offenders register for life.

The court heard this was not the first time he had failed to comply with the rules. After an earlier release in 2016, he again failed to register his address and avoided police for around five years before being caught.

He has 11 previous convictions for 29 offences.

Defence barrister Andrew Evans described the case as unusual and said his client had long disputed his original conviction and had expressed a wish to live “outside society”.

However, he said Spelman had gradually accepted that he remained subject to court orders and now wanted more stable accommodation and a chance to rebuild his life. The defendant asked the court to impose a custodial sentence so arrangements could be made for his future release.

Judge Geraint Walters noted there were signs Spelman wished to change but warned that any further breaches would result in longer prison terms.

With credit for his guilty plea, Spelman was sentenced to 10 months in prison. He will serve up to half in custody before being released on licence.

Crime

Former Wales rugby star admits Christmas Day drink-driving offence

Published

7 hours ago

February 4, 2026

Sarah-Jane Absalom

Ex-Ospreys captain was almost twice over limit in Pembroke town centre

Former Wales back row Jonathan Thomas has admitted driving through Pembroke town centre on Christmas Day when he was almost twice over the drink-drive limit.

This week Haverfordwest magistrates heard that Thomas, 43, was stopped by officers as he drove his Mercedes CLA 220 along The Green, Pembroke, at around 5pm on Christmas Day.

“The officers were very concerned at the manner of his driving, as the car was being driven erratically and was swerving to the other side of the road,” said Crown Prosecutor Sian Vaughan.

“When Jonathan Thomas got out of the car, the officers could see that he was having difficulty standing and was unsteady on his feet.”

Subsequent breathalyser tests showed Thomas had 62 mcg of alcohol in his system, the legal limit being 35.

Thomas, who has no previous convictions, pleaded guilty to the drink-drive charge and was represented in court by solicitor Jess Hill.

“He has family in the area and had travelled to spend time with them on Christmas Day,” she told the magistrates. “He’s very remorseful for his actions and hugely regrets his decision that day.”

Jess Hill concluded by saying that Thomas is currently “between jobs and living off his savings”.

Thomas, who gave his address as Main Road, Bredon, was disqualified from driving for a total of 18 months.

“The length of your disqualification reflects the fact that you were more than a little bit over the limit,” commented the presiding magistrates when imposing sentence.

He was fined £120 and ordered to pay £85 costs and a £48 court surcharge.

The former Wales back row left his role as Swansea RFC head coach at the beginning of December 2025 as a result of ongoing health concerns. He was forced to retire from playing in 2015 on medical advice after being diagnosed with epilepsy and is one of the 390 former rugby union players currently taking part in a concussion lawsuit against the sport’s authorities.

“Long-standing issues linked to the head trauma have caused me some concern recently and it has been impossible for me to give the role everything it needs,” he said in a previous interview with the BBC.

His rugby career started out with Pembroke RFC juniors before moving to Swansea RFC, which he captained when he was 19. He then joined the Ospreys where, over a ten-year period, he won four league titles and an Anglo-Welsh Cup. He was the youngest player to captain the Ospreys and, at the time of leaving, was the joint highest appearance holder, together with Andrew Bishop, on 188 appearances.

His international career saw him play for Wales at Under-16, Youth, Under-19, Under-21 and Sevens levels. He made his senior international debut against Australia in 2003, featured at the 2007 Rugby World Cup and was part of two Six Nations Grand Slam-winning sides in 2005 and 2008. Between 2004 and 2011, Thomas was included in every Wales Six Nations squad. In his appearances for Wales, he scored seven tries.