Date published: 01.09.08 - not release date

Mobilsation Driving Compliance As Changes To Construction Industry Self- Employment Tax Scheme Fuels Mobilisation of Contractors

Construction Companies Opting For Mobile Hand Held Solutions to Ensure Real Time Job Management and Time Sheets with Monthly Revenue Reporting Online

New legislative changes to the Construction Industry Tax Deduction Scheme (CIS), a special tax scheme for self-employed subcontractors, is fuelling companies to equip their self-employed workers with handheld mobile solutions in an effort to maintain real time worksheets and up to date tax positions, according to Pervasic Ltd, specialists in advanced mobile data solutions.

Whilst the benefits of wireless data applications are well documented, such as productivity increases of up to 40%, it is the cost and penalties of new pending tax legislation that are the real driver behind commercial adoption in the construction industry.

“The Construction industry historically has a poor track record of complying with tax obligations, particularly with overseas contractors working in the UK, and less scrupulous companies paying cash in hand,” said John Salter, Chief Executive Officer of Pervasic Ltd. “New revisions and regulations to the CIS scheme, which come into force in April 2007, aim to re-classify many construction workers as employees, rather than as individual self-employed workers. After that time, to remain self-employed, an individual’s records and tax position needs to be up to date. If not, individuals could be on PAYE, with employers forced to pay NI and benefits, and individuals forced to take a 30% tax deduction from payments. we are seeing a surge of interest from many of the major construction companies, who are now looking into adopting hand held mobile data solutions for their contractors to ensure real time management of jobs and time sheets with monthly revenue reporting online.”

The UK construction industry is one of the strongest in the world, with output ranked in the global top ten. Construction provides a tenth of the UK’s gross domestic product and employs 1.4 million people, many of whom are self employed subcontractors and operate under special CIS tax scheme. As the UK market leader in mobilising corporate applications, Pervasic is at the sharp end of both market awareness and adoption by major construction companies, with the building and construction industry being one of the company’s biggest markets.

Furthermore, many Government contract bids increasingly mandate the ability to track, maintain, audit, report and trace field work through mobilised data applications. And increasing legislation, such as the Working Time Directive, which requires more diligent tracking of clocking on and off, and new Health and Safety regulations, such as the need to capture equipment type, location and maintenance history of devices in buildings, are also fuelling the need for greater mobile data capture and reporting.

“Managing 100's or 1000's of onsite employees and contractors presents a myriad of business, financial and HR challenges in its own right,” added Salter. “Mobile data solutions provide critical communication between central office and back end applications and onsite workers. This not only provides better control, insight, and productivity efficiencies for the organisation, and elimination of lost pieces of paper and inefficiencies associated with traditional most manual systems, but has also shown to significantly boost employee morale, satisfaction and motivation.”

Pervasic removes the complexity of wireless data applications, and delivers robust and fully integrated mobile data solutions at a small, fixed monthly cost per mobile worker with an early return on investment. Unlike the majority of other mobile data providers, Pervasic provides a complete end-to-end solution. This end-to-end service encompasses full customisation of templates that are tailored and developed to meet each individual customer’s unique business requirements, integration with all third party technology partners, such as mobile operators, ISVs or system integrators, and delivery and management of the mobile data application to the business. Pervasic’s proven managed service enables customers to benefit from mobile working without the need for additional infrastructure, expertise or resources. Furthermore, Pervasic provides resilient connectivity with no single points of failure, as well as 24x7 monitoring and an on-going support team.

The company’s MobileOne® platform-based solutions deliver the market’s most technically advanced & robust products and service offerings, enabling organisations to dramatically improve productivity, visibility and control for mobile workers and field service engineers, and significantly enhance overall business efficiencies.

About Pervasic Ltd

Pervasic Ltd is the UK leader in advanced mobile data solutions for both the private and public sector. The company’s MobileOne platform-based solutions deliver the market’s most technically advanced products and service offerings, enabling organisations to dramatically improve productivity and control for mobile workers, and significantly enhance overall business efficiencies. Pervasic’s customer base includes major blue chip organisations, ranging from some of the world’s largest manufacturers to global transport ticketing specialists, vehicle telematics experts and specialist security services. The company operates primarily in the Break & Fix, Distribution and Logistics, Construction, and Housing Management markets, as well as working with numerous UK Local Authorities. Privately held, Pervasic is supported by established private equity institutions with majority investment from Frontiers Capital.

www.pervasic.com

For further info, contact:

John Busby
Pervasic Ltd
Tel: +44 (0)20 8133 6173
Email: john.busby@pervasic.com

Vanessa Land
Devonshire Marketing
Tel: +44(0)870 242 7469
Email: vanessa@devonshiremarketing.com