The impact of COVID-19 on the construction sector

As the COVID-19 pandemic continues its firm grip of the UK, leaving all but essential construction works on hold until the crisis is over, businesses are now trying to assess the damage this will cause with the majority of sites forced to close and what support is available.

The postponement of the reforms to the Off-Payroll Rules (IR35) for 12 months was welcomed by many in the construction sector, but is an area that many still need to prepare for. Chief Secretary to the Treasury, Steve Barclay, noted it was a “deferral, not a cancellation and the government remains committed to reintroducing this policy.” We had been preparing our clients for the changes, and will continue to support them when the changes come into effect in 2021.

During the last two weeks, we have been supporting our clients and providing advice on the following areas –

• Agreeing payment holidays with finance providers
• Agreeing longer payment periods with suppliers
• Discussions with landlords to seek deferral of rental payments
• Liaison with lenders to begin negotiations over restructured borrowings and access to the Coronavirus Business Interruption Loan Scheme
• Preparation of grant claims
• Agreeing payment plans with HMRC for any up and coming liabilities, including Corporation tax, CIS and PAYE/NI.
• Advising clients of the automatic tax deferrals schemes in place for VAT and Income tax
• Reviewing insurance documents for valid business interruption cover
• Providing support in relation to the operation of the Government’s Job Retention Scheme
• Advice on the level of support available for self employed Construction workers through the Self Employed Grant scheme
• Extending filing deadline dates for clients
• Generally being available to clients, discussing with them their concerns and being supportive as possible during this difficult time
• Being proactive and calling our clients to let them know what support is available to them

With a week now having passed since the Government supportive measures were announced, and with more details due in, you can find our regular COVID-19 updates here.

In addition, you can visit the CITB website for their latest COVID-19 updates.

Our EQ Property & Construction specialists continue to support our clients through this incredibly uncertain period, reviewing the changing environment and its impact on the industry.

If you have any questions, or want to discuss your circumstances, please get in touch with our dedicated EQ Property & Construction specialists via the numbers on the Our People page on this website or by emailing property@eqaccountants.co.uk.