Tag Archives: finance
Bureaucracy preventing small UK building firms from taking on apprentices
A third of small construction firms in the UK are being put off from taking on apprentices because of the bureaucracy involved, according to a new research report. The construction industry is in the midst of a skills crisis which can only be solved if more employers take on apprentices, says the report from the Federation of Master Builders (FMB). The research shows that 94% of small construction firms want to train apprentices but a third are being turned off by a number of serious ‘fear factors’. These include the cost of employing and training an apprentice and major concerns regarding the complexity of the process. ‘There is strong evidence to show that small construction firms need better information and that if they were more aware of the support that’s available, a great number would train apprentices,’ said Brian Berry, FMB chief executive. The research also found that just under 80% of non-recruiters are not aware of one of the most important apprenticeship grants available to them and just over 75% say knowledge of financial support would make them more likely to take on apprentices. ‘Given that two thirds of all construction apprentices are trained by SMEs it is critical that the Government does everything in its power to remove any barriers that might be stopping these companies from training,’ Berry explained. ‘Looking ahead, the Government’s new apprenticeship voucher could be a disaster for small firms unless it is properly road tested and made as simple and easy to use as possible. We’re also calling on the Government to protect our industry training board which is at risk from the new Apprenticeship Levy,’ he pointed out. ‘The Construction Industry Training Board (CITB) needs reform admittedly but without it the very smallest firms would be left with less financial and practical support for apprenticeship training. Remove this lifeline and you risk worsening the skills crisis,’ he added. The report is published at the same time as another piece of research which shows that construction and trade positions make up just 7% of all apprenticeships, down from a high of 12% in 2006. The research from small business insurer Direct Line for Business also shows that while the number of total apprenticeships has increased by 57% in the last five years to 434,630 during 2013/2014, only two construction and trade focused apprenticeships rank in the top 10, construction skills at nine and industrial applications at 10. This is vastly different to 2006/2007 when construction skills apprenticeships topped the table, with more than 20,000 apprenticeships undertaken in this field. ‘Construction and trade based skills are vital to the UK economy. It’s tradespeople who come to the rescue when our boiler fails, and are the ones who are working every day to build homes, offices and help improve our roads,’ said Nick Breton, head of Direct Line for Business. ‘Apprenticeships are important for budding builders, plumbers and electricians to get into the workplace. With fewer people in apprenticeships there is a… Continue reading
New tax on property in New Zealand owned by non-citizens from April 2016
A new withholding tax on sales of residential property in New Zealand by people who live overseas and go on to sell the property within two years of purchase will be introduced in 2016. The Residential Land Withholding Tax (RLWT) is the third part of the Government’s investment property tax reforms announced as part of its Budget 2015. It will come into force on 01 July 2016 under a new Bill before Parliament. Revenue Minister Todd McClay said that the RLWT will act as a collection mechanism for the new bright-line test, which applies to gains from the sale of residential property purchased on or after 01 October 2015 and sold within two years. ‘The proposed RLWT will ensure the integrity of the tax system and will bring the collection of bright-line tax into line with other withholding taxes, which generally apply when there is likely to be a tax liability and collection may be difficult,’ he explained. RLWT will apply when the property being sold is located in New Zealand and defined as residential land under the bright-line test provisions; when the seller acquired the property on or after 01 October 2015 and has owned the property for less than two years before selling it; and the seller is an offshore person. An offshore person would include people who are not New Zealand citizens, people who do not hold residence class visas and New Zealand citizens and residence class visa holders who have been away from New Zealand for a significant period of time, three years in the case of New Zealand citizens. New Zealand trusts and companies may also be considered offshore persons if they have significant offshore interests in them. ‘Unlike the bright-line test there is no exception for the seller’s main home under the proposed new RLWT rules. As the withholding tax would only apply to a person living overseas, it is unlikely that the New Zealand property being sold would be the person’s main home,’ said McClay. The Bill does, however, propose an exemption from RLWT for transfers upon death, and for transfers made in relation to a property relationship agreement, in keeping with the bright-line test. The Bill also proposes that the obligation to pay the RLWT will primarily be the responsibility of seller’s conveyancing agent or in their absence, the purchaser’s conveyancing agent and in the absence of both, directly by the purchaser. ‘The RLWT proposal in the bill, together with the new bright-line test and changes to collect better tax information about buyers and sellers of residential property will help to ensure that everyone pays their fair share of tax on gains from property sales,’ added McClay. Continue reading
UK home buyers make their mind up about a property quickly, research suggests
Britain is a nation of decisive home buyers who are quick to fall in love with a home and act fast to buy it, according to a new survey. Some 61% of home owners were able to buy the home they originally fell in love with and 25% were lucky enough for this to be the first home they viewed. This highlights the decisive nature of British home buyers, according to the survey report by conveyancing services firm My Home Move. The research also found that house hunters know extremely quickly whether they like a property with 26% making the decision to buy their home even before viewing the whole property. It also found that 18% make the decision within 30 seconds of entering the property and 8% knowing the property is for them before even entering. In contrast, 17% needed a second viewing to decide it was the home for them. On top of this the survey shows that 45% of buyers did not have to make any sacrifices or compromises when buying their home and are therefore living in their dream home. However, first time buyers and those in London are more likely to come to a compromise when buying a home with 11% finding it much harder to find their dream home and having to view 10 or more properties before finding the right one. The research also found that 39% had a perfect home that ‘got away’ and were not able to buy the property they originally fell in love with, and this was more likely to happen in London were 60% were disappointed in this way. Buyers in London were also more likely to make sacrifices or compromises when choosing their home and 70% said their current property did not have everything they wanted, compared to only 55% for Britain as a whole. The report suggests that this is due to the high demand and shortage of properties for sale in the capital, alongside rocketing prices, meaning buyers in London have fewer options to choose from. This also contrasts with other parts of the country, such as the North West, which saw only 44% having to make any sacrifices or compromises. First time buyers were worse hit by this reality when buying their home, with a significant majority of 83% aged 30 or below saying they had to make sacrifices or compromises when buying their home. In comparison, only 43% of home buyers aged above 51 said their home did not have everything they wanted. The most common reason home owners were not able to buy a property was being outbid by another buyer. This happened to 27% of buyers, and is much more likely among first time buyers than older home owners, with 41% of those aged under 30 being outbid, dropping to 26% or less for those aged above 51. Continue reading
