Construction unites to demand delay to VAT changes

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Scaffolding accessories market in the UK worth £230 million

New research from Market.biz has revealed that the scaffolding accessories market in the UK was estimated at around £230 million in 2018, growing at a compound average growth rate (CAGR) between 2 and 3 per cent over the forecast period (2020-2029).

The global scaffolding accessories market is expected to reach £33 billion by 2026, expanding at a CAGR of 6.1 per cent from 2018 to 2026.

According to the report, the total market size for China and North America held the highest market share in the scaffolding accessories market in 2017.

Increasing scaffolding demand from the construction industry with high rise commercial buildings and improvement in residential infrastructure along with new constructions is expected to support the growth of the global scaffolding accessories market over the forecast timeline.

Maintenance, which involves cleaning, repairs, painting jobs, electrical installations and other activities, will drive the demand for scaffolding accessories over the forecast period.

FIND OUT MORE www.market.biz

The construction industry united last month in calling for a delay to changes to the way VAT is charged and paid – due to come into effect on 1 October – because it will affect cashflow and could force some companies out of business.

In a letter to the Chancellor from a coalition of the major trade bodies, including the Scaffolding Association, calls were made to push back implementation by at least six months, highlighting issues with timing and the associated pressures on the industry regarding material prices, increased pension contributions and skills shortages.

Robert Candy, chief executive of the Scaffolding Association, said: “The implementation of Reverse VAT Charging will have a significant impact on the cashflow of scaffolding contractors. By delaying its implementation, these businesses will have the opportunity to suitably prepare themselves for the planned changes. But scaffolding contractors should make sure that they are prepared if the government does not delay the changes.”

As of 1 October, HMRC plans to introduce VAT Reverse Charging on the majority of construction-related services. Companies who are VAT registered and Construction Industry Scheme registered will no longer pay VAT to the majority of their subcontractors.

VAT will only be paid to firms who supply labour only (employment businesses) and to the merchants and businesses that sell building materials only without any fix. The purpose of the change is to combat VAT fraud perpetrated by organised crime gangs.

FIND OUT MORE Turn to page 14 for more information on Reverse VAT Charging

Castle Scaffolding is the latest Scaffolding Association member to successfully complete the independent audit to reach Audited Membership status.

A key part of the Association audit is a thorough on-site assessment of a live project –the project audited for Castle Scaffolding had been up for almost a year. Managing director Ryan Jewell explained why the audit strongly demonstrates to clients a company’s actual on-site quality and continuing standards, not just the quality of a company’s paperwork.

Mr Jewell said: “Audited Membership gives our company so much over and above other accreditations.

“It reinforces that what we do, we do consistently well – all day, all year. Being Audited Members of the Scaffolding Association reassures main contractors that they are employing a professional and established company that understands the importance of delivering consistently high quality standards and high service levels.”

FIND OUT MORE www.scaffolding-association.org/membership-levels

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