HS2 reports subcontractor to HMRC over alleged tax fraud

HS2 has reported one of its own subcontractors to HMRC after whistleblowers raised concerns about alleged tax fraud.

A firm which supplied workers to Balfour Beatty Vinci (BBV), which is building the high speed line between London and Birmingham, is alleged to have been falsely declaring self-employed workers as PAYE.

The firm is said to have then charged higher rates for the workers and submitted “fake” pay slips, according to reports first published in the i newspaper.

HS2 Ltd has said it is conducting its own investigation into two firms which supplied it with labour following the claims, which were first raised earlier this year.

A spokesperson for HS2 Ltd said: “We treat all whistleblower allegations seriously and are continuing to conduct our own investigation. 

“Furthermore, HS2 Ltd has formally reported the allegations to HMRC, and we encourage anyone who believes they may have relevant information, which could support our enquiries, to report it in confidence via HS2’s Speak Out channels.”

The investigations come as the transport secretary, Heidi Alexander, prepares to publish the initial findings of an internal review by HS2’s chief executive Mark Wild.

Alexander, who will present the findings of the report this week, is reported to have been told by Wild that the line’s first phase will not hit its 2033 target date for opening without shaking up the construction phasing.

Wild is carrying out a fuller assessment of HS2’s costs and delivery time which will be presented to the government later this year. 

Rail magazine has reported that Wild told Alexander the cost of the project will top £100bn and will not be complete until the late 2030s.