JTC

JTC · The Construction Industry Joint Taxation Committee

The Joint Taxation Committee (JTC) consists of representatives from 11 major trade federations operating in construction as a means of jointly lobbying on those tax issues that affect firms in the industry.

The JTC acts a specialist resource to member trade federations providing a source of high quality technical knowledge about all the taxes that apply to construction businesses. It produces guidance for member federations and their members illustrating how normal commercial practice can be monitored and, sometimes adapted, to allow good tax compliance.

Current issues under discussion with Government and HMRC are:

  • the tax treatment of payments for project bank accounts
  • the levels of penalties experienced for minor failures in CIS

Our relationship with trade federations and construction firms gives the JTC a valuable understanding of the pressures and demands placed on construction companies in relation to tax compliance and payment. This experience is vital when lobbying Government and HMRC for those measures which will help firms in the industry meet the requirements placed on them by legislation. It is essential to be able to give examples from day to day business experience and bring forward firms who can give a personal account of how legislation or compliance requirements affect their trade.

The JTC has been instrumental in the following:

  • The VAT legislation which avoids triggering VAT on invoiced amounts at the interim stages of a contract
  • The VAT legislation the allows a reduced rate of VAT for the conversion of commercial property into dwellings
  • The legislation that provided the reduced rate of VAT for dwellings converted to a greater or a lesser number of units
  • The legislation that provides tax relief for the costs of traveling and subsistence for workers on site for less than two years
  • The development and introduction of the tax dashboard

The Joint Tax Committee of Construction was founded in 1966 by the two trade federations predominant in the industry at the time as a means of jointly lobbying on those tax issues that affected their members. It quickly developed into a specialist resource and source of high quality technical knowledge about all the taxes that impinge on construction and how commercial practice could be controlled to allow good compliance.

For many years it remained largely financed by the Building Employers Confederation, later the Construction Confederation but in 2009 it became a wholly independent body and its membership greatly expanded to eleven federations ranging from those representing the large main contractors to federations representing the specialist trades and one-man businesses.

Liz is the secretary of the JTC and has been in post since 1990. She began her career with HMRC on their fast track scheme training graduate inspectors to take charge of local tax offices. She managed a local office, moved to tax a major bank and then went on to work on international issues in a policy role. In 1990 she left HMRC to become Head of Tax at the then Building Employers Confederation (BEC) and to run the Joint Tax Committee as it’s Secretary.

Since then Liz has become very well known to many in Construction for her teaching on topical tax issues and her help to members of the JTC in trouble with their tax affairs. As Head of Tax at the Construction Federation she had led the JTC in many negotiations and discussions with HMRC on legislative change.

She has seen two major rewrites of the CIS Scheme, the introduction of the reduced rate bands for various construction work, the introduction of Landfill Levy and Aggregates Tax.

Liz is known for her common sense and friendly approach to those in the industry experiencing problems. Her guidance and help is aimed at a construction readership. It is easy to understand and clear to apply whenever the legislation itself makes that possible!