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MARCH 2016 PRO INSTALLER
PRO BUSINESS
www.proinstaller.co.uk
GGF RESPONDS TO VAT CONSULTATION
The GGF has raised concerns in its response to the
HM Revenues and Customs
(HMRC) consultation on
‘Changes to the reduced rate
of VAT for Energy Saving
Materials.’
The GGF’s response on behalf of
its membership outlined concerns
regarding the absence of energy efficient glazing in the list of
energy saving materials for the
reduced rate of 5% VAT.
The GGF also urged the UK government to bring its reduced rates
in line with a European Directive
which permits EU countries to
apply reduced rates for “provision, construction, renovation and
alteration of housing, as part of a
social policy.”
Giles Willson, GGF Managing Director commented: “Replacement
windows and doors have not pre-
viously been included within the
reduced VAT rate despite being
vital energy saving products which
could legitimately qualify under
the criteria described in the European Directive. It is time for the
UK government to comply with
EU legislation and to appreciate
the importance of energy efficient
glazing in the broad economic, social and environmental context.”
The GGF’s response also listed
considerations for HMRC to include in any forthcoming changes
to VAT on energy saving materials
including;
• Provision for a whole house
approach to energy saving
materials being used to make
properties energy efficient.
• That the primary reason for
replacing windows and doors
is now for improving energy
efficiency (43% - source Palmer
Research Report 2014).
• The GGF Membership estimates
a growth of 20% in the sector if
5% VAT is awarded. This would
be a significant boost to a sector
which has been steadily declining since 2002.
To support the response the
GGF provided an estimate of the
financial impact to the Treasury
if windows and doors were to
be included in the reduced VAT
category and drew comparisons
with the increase in other areas of
taxable revenue.
Should the VAT rate for installation of windows and doors in the
domestic sector be reduced to 5%,
the GGF has offered to work with
government to develop suitable
guidance and training for the
industry sector.
The outcome of the consultation and any changes to the government’s VAT policy are likely
to be released in the summer
with any changes being included
in the Finance Act in Autumn
2016.
For further information go to:
www.ggf.org.uk
‘Natural move’ as Glazerite Keeping your employees
acquires City Beads
healthy and safe pays
The Glazerite UK Group Ltd has
purchased the entire share capital
of Trade Frame Holdings Limited –
which in turn owns City Beads Ltd of
Peterborough.
The company will operate as Glazerite
(East) Ltd under a new holding company
called The Glazerite UK Group Ltd. John
Hewitt will be Chairman, Jason Thompson
Managing Director, Mike Johnson Finance
Director and Ian Lloyd Operations Director.
Also included in the new structure will be
Glazerite Windows Ltd, Glazerite (Northwest) Ltd, and Glazerite (Southwest) Ltd.
Each company will be headed by its own
board of directors formed through selective
promotions from each division and complemented by external appointments.
As City Beads Ltd the company manufactures products using Halo Rustique and
System 10, both VEKA UK Group products
and key factors in the decision to purchase
the business. These will be complemented
by additional products already offered by
Glazerite, including vertical sliding and fully
reversible windows, bi-folding doors, Residence 9 flush sash windows and composite
residential doors by Solidor & Doorco.
Other factors that influenced the acquisition include the company’s Peterborough
location, its longevity – City Beads Ltd was
formed in 1982 – a longstanding team and
established customer base. Current sales
are circa £4 million with an output of 450
frames per week.
An investment programme will take
place over 12–18 months with an expected
growth to £6m, an increase of 50% within
that period.
The Glazerite UK Group Ltd is now in
excess of 3,500 frames per week. This
will increase to more than 3,800 frames
following completion of the investment.
The group forecasts sales in excess of £28
million for 2016 making it one of the largest
independently owned companies in the
industry.
Group Chairman John Hewitt said of the
acquisition: “The purchase became a natural
move and I would like to thank Will Nicoll,
former owner of the company, for his cooperation throughout the negotiations. Will
intends to continue to run his Tradeframe.
com operation in Peterborough, Cheltenham, Hertfordshire and Swindon and will
become a customer of Glazerite (East) Ltd.
The focus of all operations will be significantly improved as a result.”
Crown and magistrates courts in England and Wales will
now be bound by tough new guidelines when sentencing
offenders convicted of breaking health and safety law.
For the first time courts in England and Wales will be
required to follow comprehensive sentencing guidelines,
which became applicable from 1st February this year.
Neal Stone, Policy and
Standards Director at
the British Safety Council, said:
“We broadly welcome
the new guidelines and
in particular that in future
three factors will be key in
determining fines for health
and safety offences: the
degree of harm caused, the
culpability of the offender,
and, the turnover of the offending organisation. Having
consulted our members we
were able to say in response
to the Sentencing Council’s
proposals that there was
overwhelming support for
this change which would
help ensure greater consistency in the sentencing practice of our courts and a level
of fines that fit the crime.
“This long overdue change
is specifically in relation to
the level of fines imposed
and in certain cases the
use of imprisonment as a
sanction. What is clear is that
the courts have on occasions
failed to properly take into
account the seriousness of
the offence in weighing up
the appropriate penalty.
“To date the largest fine
imposed in Great Britain for
a health and safety offence –
£15 million – was on Transco in 2005. That unenviable
record may soon change.
“The new guidelines,
which will in some cases,
result in far greater fines
than courts are currently
imposing, reflects a shift
in not only public opinion
but concerns among certai n
members of the judiciary,
including Lord Thomas, the
Lord Chief Justice. As he has
made clear in recent appeal
court decisions the purpose
of fines is to reduce criminal offences, reform and
rehabilitate the offender and
protect the public.
“If the changes in sentencing practice do not help
achieve these objectives –
particularly ensuring compliance and discouraging law
breaking – then they count
for nothing. What we will
need to see is clear evidence
that the new guidelines have
played their part in improving health and safety. Extra
money through increased
fines going into Treasury
coffers should not be the
name of the game. The
objective must be to reduce
the deficit of fatal and major
injuries and occupational ill
health.”
Source: www.Britsafe.org