Gabem Management has been awarded ‘Gross Status’ with immediate effect. The reinstatement by HM Revenue & Customs allows Gabem to restore normal services to agency and company clients.

The announcement comes following intense and protracted negotiations with senior officials within HM Revenue & Customs at both local and policy division level.

Gabem provide valuable construction related services to agencies and those directly involved in the construction industry in addition to providing personalised accounting, payroll and administration services to many thousands of temporary workers in the construction sector.

Under the previous CIS scheme, HMRC refused to renew the Gabem CIS5 certificate, forcing the business to operate under CIS4 arrangements. In February this year, after a lengthy appeal process involving the special commissioners, the Revenue’s decision was upheld despite the special commissioner describing the compliance failures to be an ‘oversight’ on the company’s part.

Managing director, Trudy Gordon, says: “This is very good news for everyone concerned. While waiting for the Revenue’s decision on our latest application under new CIS, we have been operating successfully with a 20% deduction.

“However, we know this has caused an administration headache for our clients something which we intend to address as soon as possible. We are proud to say that despite operating under deduction, payments to operatives have not been affected.”