HS2 Ltd, the company overseeing the high-speed rail line between London and Birmingham, has reported a subcontractor to HMRC for potential tax fraud. The referral follows allegations from whistleblowers regarding payroll practices for construction staff.
Last month, HS2 Ltd initiated its own internal investigation into two firms supplying workers to Balfour Beatty Vinci (BBV), a primary HS2 contractor. These firms are suspected of misclassifying self-employed workers as salaried employees, potentially resulting in inaccurate tax reporting.
Transport Secretary Heidi Alexander is expected to address this matter in Parliament this week. This latest controversy adds to the ongoing challenges facing the HS2 project, which has been plagued by escalating costs and delays since its 2009 inception.
Initially conceived to increase rail capacity between England’s north and south, the project’s second phase, extending lines to Manchester and Leeds, was recently cancelled by the previous government. The allegations, first reported in May by the *i* newspaper, involved claims of fabricated payslips showing inflated salaries for misclassified workers.
One of the implicated labor suppliers remains suspended from new contracts pending the investigation’s conclusion. An HS2 spokesperson stated that the company takes all whistleblower allegations seriously and encourages anyone with information to come forward through confidential channels. The Department for Transport has reiterated its zero-tolerance policy towards fraud and corruption, affirming its commitment to a thorough investigation.
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