If the compliance history is damaged during construction operations then HMRC can revoke gross status which may have a catastrophic impact on cashflow. Maintaining a good compliance history with HMRC is therefore paramount.
Employee-owned businesses have advantages to both the employee and their employer; including higher employee engagement, motivation and wellbeing. The employer experiences increased productivity and efficiency.
The UK is the first country to bring in this type of register and so there are no other models to draw on and the government is intending to “…proceed cautiously , striking the right balance between improving transparency and minimising burdens on legitimate commercial activity”.
The Government are concerned that bringing external investors into a family business can dilute the founders down below a 5% stake in a company. The 5% threshold may therefore hold back the seeking of external funds and therefore hold back growth in a business.