What has been happening in the construction industry?
The construction industry generally enjoyed plentiful demand for its services between the late 1990s and the mid 2000s.
There were some problems – skilled labour was hard to find and insurance costs rocketed for some – but a strong housing market and a growing economy meant there was generally plenty of work to go around.
Unfortunately things came unstuck during the late 2000s as the economy nose-dived and the housing market more or less collapsed.
Many construction businesses were forced to lay off staff and it became a struggle for some to find enough new work.
Conditions remained pretty difficult for many during the early 2010s, but 2013 saw things start to improve and 2015 was a much better year.
The outlook for the economy and the construction industry is now much more positive. Nevertheless, the market remains very competitive and it’s still essential for builders to work to high standards of quality and professionalism.
Quality and standards
Some construction businesses are no more than a ‘man in a van’, sometimes with little or no training and experience. ‘Cowboys’ often pay no tax or VAT and sometimes claim unemployment benefit too, enabling them to undercut legitimate businesses on price.
Although people have become wiser about avoiding the worst cowboys, unfortunately the construction industry is still plagued by ‘house of horrors’ stories of poor workmanship and dishonest builders.
For its part, the construction industry has made considerable efforts in recent years to clean up its image and drive the cowboys out of business. Strong emphasis has been placed on education, both of the consumer and of people who choose to enter the building trades.
Several schemes, some of them (such as the TrustMark initiative) government backed, have also been introduced with the aim of certifying bona fide tradesmen.
However, participation in these schemes is purely voluntary and some members of the industry complain that the cowboys just ignore them or, worse, falsely claim to be members.
Some local authorities participate in the LABC Building Excellence Awards and make awards to local building firms for high quality work in various different categories. A growing number also participate in the Buy with Confidence – Trading Standards Approved scheme.
Limited Company Registration, Self Employment and all the initial Setup.
It’s extremely difficult to know all the regulations relating to the Construction Industry unless you engage a proactive adviser who works diligently to ensure you are fully compliant.
Please Let us help you today register your limited company and ensure the legal structure is Tax Efficient!
We shall also help with: Opening a business Bank Account, Payroll, Staff & Sub Contractor Contracts, Bookkeeping, VAT and End of year Accounts.
And that is just the start!
How we can help!
If you need to speak to a Pro active Accountant about your new venture, please contact us on 0208 679 4690 please Visit our website.