Do I still need to pay instalments of Community Infrastructure Levy (CIL) while the development site is closed?
Payments of the Community Infrastructure Levy (“CIL”) are tied to commencement of development, and where an instalment policy is in place, the instalments are usually tied to periods of time following commencement rather than build out rates. Therefore where a development has commenced, payments of CIL are likely to fall due in respect of a site notwithstanding that the site may have temporarily closed or build out rates have slowed.
New regulations now in force, provide some additional relief for those developers with an annual turnover of £45 million or less. Such relief will allow the Council to defer payments, disapply late interest charges, and refund late interest charges that have already been levied since 21 March 2020.
For those developers that cannot benefit from the new provisions, unless a Council has adopted an exceptional circumstances relief policy the regulations do not provide for any relief to be provided in instances where payment of CIL will create viability issues. Most Councils have not adopted such a policy, and in those circumstances the CIL liability will remain due in accordance with the payment schedule on the demand notice.
Councils are at liberty to amend their instalment policies in accordance with their own internal procedures, and the Government is encouraging Councils to explore this option to provide some relief to developers. However this will only assist in respect of any prospective instalments where the development commences after the new instalment policy has been adopted.
For those developers whose annual turnover exceeds £45 million, the Government seems to be taking the view that such developers can afford their CIL liabilities regardless of the current climate. The only concession the Government has proposed is to encourage Councils to make use of the existing discretion they have in respect of the imposition of surcharges for late payments.
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The FCA’s test case in the Supreme Court ruled overwhelmingly in favour of policyholders. However, business interruption cover generally has the prerequisite of physical damage or loss to the property (or in some circumstances, the presence of a notifiable disease at the property or within a certain radius of it), to recover losses caused by the interruption to your business. The onus is on insurers to re-assess those claims which are impacted by the Supreme Court’s judgment and to make contact with the policyholders regarding next steps. If you have not already made a claim, in the first instance the terms of any policy should be checked carefully to see whether business interruption cover is provided.
Hosted by Advanced Manufacturing Forum, Partner, Matt Cormack discussed in this webinar how to avoid risks associated with your customer and supply chain contracts during this challenging Covid-19 period.
The webinar covers common questions such as:
- Can force majeure excuse me or my suppliers from paying on time?
- What are the risks to my business if I can’t perform on time due to Covid-19?
- What will happen to my contracts if the Government takes steps to require me to close down my facility?
To watch the full recording, please click here. (To note the recording begins at 10 minutes)
If you have any follow up questions, please do not hesitate to contact one of our lawyers detailed below or use our ‘ask us a question‘ feature.
Employers will need to be flexible with employees who are unable to return to work at present due to childcare difficulties. While schools have reopened, a period of isolation may result in employees having to keep children off school/nursery and therefore have childcare issues. Some employees will be able to manage this with their partner and extended family, whereas others will not. Where an employee simply cannot make any other arrangements to care for their children in the short term then they will be unable to return to work until that situation changes. Any dismissals on the basis that someone is unable to return to work as a result of lack of childcare are likely to be unfair, at least in the short term where such employees may well be able to demonstrate that they had no options available to them.
Some organisations are prioritising properties, known to be higher risk, such as properties with open flues, or near to the certificate expiry date.
Vulnerable staff and tenants need protection, safe working practices need to be established, and communicated. Organisations should bring forward servicing for people known to be vulnerable – but bearing in mind the guidance as to preserving the annual test date.
The Home Office has not stated when it will end these temporary measures, albeit it has stated that it will provide a warning. Where employers have carried out checks using the temporary measures, the Home Office has confirmed that it will require employers to carry out retrospective checks on any of the following:
- Employees who started working for you when the temporary measures were in place
- Employees who required a follow up check during the temporary measures (for example because their previous leave was coming to an end).
It is not explicit from the guidance but these retrospective checks must require you to have in your possession the physical ID in its original form. When carrying out the retrospective check, employers must record this using the following wording “the individual’s contract commenced on [insert date]. The prescribed right to work check was undertaken on [insert date] due to Covid-19.”
These further checks must be made within eight weeks of the temporary measures ending, and employers must keep records of both checks undertaken. Where the employer discovers that the employee does not have the right to work during the retrospective check they should stop employing them.