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RayRapp  
#1 Posted : 03 August 2011 08:19:37(UTC)
Rank: Super forum user
RayRapp

A friend of mine has been engaged to work on a private property by the owner. However the property is in the name of an off-shore company for tax purposes (apparently you do not pay Stamp Duty if a Ltd company). The question - is this a domestic client or does it now fall with the auspice of CDM? I have read the ACoP L144 Reg2 s28-29 and have my own opinion but would be interested in your views before I provide advice - thanks. Ray
Clairel  
#2 Posted : 03 August 2011 08:34:05(UTC)
Rank: Super forum user
Clairel

Jeez, why do the rich always seem to wiggle out of paying the taxes that the rest of us mere mortals have to pay! I'm confused as to how a private property can be owned by a business. I assume that the premises aren't used for business purposes? (though I'd like to know how you can buy a private house as a company?). I'd be inclined to say on the basis of that that they are not a domestic client as the propery is owned commercially. As this seems to be one of those cases of the someone using loopholes in the law for their own gain I would suggest that there is in fact no right answer though.
TFCSM  
#3 Posted : 03 August 2011 08:39:38(UTC)
Rank: Forum user
TFCSM

I am with Claire on this one. If it is registered to a company, it is a company asset.
A Kurdziel  
#4 Posted : 03 August 2011 09:28:08(UTC)
Rank: Super forum user
A Kurdziel

So by trying to avoid tax by registering the house in the name of a company they have got themselves in situation where CDM applies. Well that’s what happens if you try to be clever. No sympathy here!
jde  
#5 Posted : 03 August 2011 09:50:22(UTC)
Rank: Forum user
jde

Hoisted by their own petard! In my opinion it is CDM as the property is not privately owned but commercially, so by trying to save a few quid from the taxman, going to have to spend a few more on fees.
RayRapp  
#6 Posted : 03 August 2011 10:00:35(UTC)
Rank: Super forum user
RayRapp

Thank guys and girls, your views support my own. It will give me great pleasure in advising that CDM applies. Incidentally, the project is above the 30 day threshold and has already commenced without a C-DMC, F10, CPP, etc. Should be fun...
pete48  
#7 Posted : 03 August 2011 11:04:59(UTC)
Rank: Super forum user
pete48

May I just say that if anyone is lawfully claiming tax relief according to the current regulations then they are not “fiddling” or “avoiding” anything. As to the question of whether this is notifiable. Quote from HSE. “A domestic client is someone who lives, or will live, in the premises where the work is carried out. The premises must not relate to any trade, business or other undertaking.” I was taught that one of the key tests was about “used in furtherance of the business”? If so the use to which the property is put may be relevant here as well as who is actually commissioning the work. So if the client is the domestic tenant of the property and the work is nothing to do with the furtherance of the business to whom the property is registered, is it then domestic? I am asking questions here not giving answers; just trying to learn a little on the way, P48
boblewis  
#8 Posted : 03 August 2011 11:24:44(UTC)
Rank: Super forum user
boblewis

Pete48 Have to disagree as a domestic tenant would normally not be in a position to order works on a landlords property. I anticipate this person has some sort of senior role in the owning company and thus the house is more likely to be a company house used on a grace and favour basis via his role in the company. It is actually not that unusual. In the past when I have worked for such companies we actually did the construction work not the occupier. Ray - give the HSE a call if the client does not wish to pay Bob
Ron Hunter  
#9 Posted : 03 August 2011 11:26:58(UTC)
Rank: Super forum user
Ron Hunter

Lest we forget: "CDM" (The Regulations as a whole) apply to all construction work. In this instance the Client is NOT a domestic one, therefore Notification and Appointment criteria will apply.
firesafety101  
#10 Posted : 03 August 2011 12:07:12(UTC)
Rank: Super forum user
firesafety101

My first thought was to make them pay the extra for notification etc. but then started to think that maybe the occupier has nothing to do with the property owner so could be a domestic client after all. As has been said CDM does apply it is notification in question here. You could ask HSE but they don't know the circumstances and I doubt they will bother to investigate further as nothing has gone wrong - yet? Ray please keep us informed.
RayRapp  
#11 Posted : 03 August 2011 12:32:12(UTC)
Rank: Super forum user
RayRapp

I do not have all the facts, only what I have already provided. I might learn some more details about the property and client in due course. That said, some really interesting comments provided by all - many thanks. Ron, not sure what you mean by - 'Lest we forget: "CDM" (The Regulations as a whole) apply to all construction work.' CDM does not apply to domestic clients. Did you mean ALL commercial construction work? Pete, the passage you have highlighted is what caught my eye when trawling through the ACoP - “A domestic client is someone who lives, or will live, in the premises where the work is carried out. The premises must not relate to any trade, business or other undertaking.” Given the circumstances this section could be applied either way, but I personally would give more weight to latter reference to '...any trade, business or other undertaking.' I feel there is no need to bother the HSE with this one, it's a bit messy if you know what I mean. I will keep you posted if there should be any interesting developments.
Ron Hunter  
#12 Posted : 03 August 2011 13:06:33(UTC)
Rank: Super forum user
Ron Hunter

C'mon Chris - the Client is the person who commissions the work!
Ron Hunter  
#13 Posted : 03 August 2011 13:09:21(UTC)
Rank: Super forum user
Ron Hunter

RayRapp wrote:
. Ron, not sure what you mean by - 'Lest we forget: "CDM" (The Regulations as a whole) apply to all construction work.' CDM does not apply to domestic clients. No Ray, but it applies in ALL circumstances to contractors and designers. As with many discussions, there can be a tendency to talk about the "application of CDM" when really we mean the "application of Notification and appointment criteria".
JohnW  
#14 Posted : 03 August 2011 13:34:25(UTC)
Rank: Super forum user
JohnW

Ok let's assume the client is domestic. Not notifiable, don't need a CDM-C or a PC. But certain bits of CDM DO still apply. There are general CDM management duties that apply to all construction projects, so some duties remain on clients, designers and contractors regardless of notification. Designer CDM duties apply to all projects, including non-notifiable and domestic. 'Designers' prepare drawings, conduct design analysis and, specify quantities, expected to avoid foreseeable risks by eliminating hazards, provide information for the health and safety file, take account of the Workplace (Health, Safety & Welfare) Regulations etc. CDM requires all organisation and individuals to be competent in the work they do, and competence assessment proportionate to the risk, size and complexity of the work. Part 4 of CDM 2007 contains the duties to control specific worksite health and safety risks and these apply to ALL construction sites. These are duties on every contractor & every other person who controls construction work. For ALL projects, dutyholders should provide information needed to carry out work with controlled risk.
firesafety101  
#15 Posted : 03 August 2011 17:51:06(UTC)
Rank: Super forum user
firesafety101

ron hunter wrote:
C'mon Chris - the Client is the person who commissions the work!
But if it is a domestic client it is not notifiable - CDM applies to the contractors.
boblewis  
#16 Posted : 03 August 2011 18:05:42(UTC)
Rank: Super forum user
boblewis

All clients have a duty to appoint competent contractors and what is also possible - prepare a draft SWMP. It is only notification and CDMC that really concerns us here.
firesafety101  
#17 Posted : 03 August 2011 22:41:56(UTC)
Rank: Super forum user
firesafety101

Bob SWMP not CDM Regs. However the client must appoint a PC to manage the SWMP. Not many domestic clients wil have a project value more than £300,000. ? I do know of one however - an extension to a house in London.
boblewis  
#18 Posted : 03 August 2011 22:47:49(UTC)
Rank: Super forum user
boblewis

Chris Absolutely correct - was merely trying to point out the role of the domestic client in a broader sense. In fact the SWMP is also mentioned in the CDM acop, at least if my memory is correct but then am in my dotage:-) Bob
bob youel  
#19 Posted : 04 August 2011 08:31:12(UTC)
Rank: Super forum user
bob youel

Follow the money as if the bulk of it originates at the business account as against a private account then all the areas of CDM apply as does SWMP etc 'Simples!' SWMP applies in any case as there are no business/non-business demarkation areas as the 'producer pays' principal applies and the producer can be anybody. NB: Officially CDMC;'s have nothing to do with SWMP And £300K for a private property is pin money in some cases; the last private house job I was involved with cost £1M just for the kitchen!
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