TCP are now an official ID06 registered company, meaning we can compliantly operate within the construction industry in Sweden. In this blog post we will look at how we can help if you are a construction contractor in Sweden.
What is ID06?
ID06 is an electronic system registers all the workers employed on construction sites and is required of all the companies active in the construction sector in Sweden.
The ID06-system started in 2006. It is a system that enables businesses to do ID-controls and gather attendance records, which purpose is to make it difficult to perform undeclared work and for corruption. Anyone who is present at a construction site should be registered when they arrive and leave the site, the information should be able to be verified/checked by the Swedish tax-authorities.
The goal of the Swedish Tax Board in creating the ID06 project was to include all the companies in the construction sector in a uniform system, in order to create a safer work environment and ensure that only a legal workforce was present on the construction site.
The Swedish Tax Board (Skatteverket) has the right to visit construction sites without prior notice in order to check and see if everyone on site is registered and has been logged in. If necessary, the tax board can always demand reports on working hours for a certain period and this can be sent directly from the card reader system.
Infrastructure and construction market in Sweden
One of the most promising markets in Sweden is the construction and infrastructure sector. Between now and 2030, the country will spend €64 billion on railways, roads and other major projects and build 700,000 new homes and offices. The report is mainly focused on the construction market with little general information about the infrastructure market.
In January 2019, a new Ministry of Infrastructure was formed to focus on the development of the Swedish infrastructure and its long-term demands. A plan has been created, named; The Swedish National Transport plan 2018–2029, which contains approximately €70billion euros of financed infrastructure projects. Together with another €70 billion from the regional and local investment plans, it is easy to see why Sweden’s infrastructure sector is booming.
Main Parties
The main parties to a normal construction project are the employer and the contractor. In a project’s simplest form there is only one contractor, but it is common, both in large and smaller projects, for the total scope of work to be divided into parts that are dealt with in parallel construction contracts, often by different contractors.
In addition to the employer and the contractor(s), there are also various consultants, such as the architect and the quality inspector. The contractor(s) and other actors are usually appointed through a tender process and, in the case of public contracts, a public procurement procedure. The common procurement arrangements are no different when there are international contractors or consultants. In relation to public procurement procedures, EU member states’ laws are harmonised by Directive 2004/18/EC on the co-ordination of procedures for awarding public works, supply and service contracts (Consolidated Public Sector Directive). This is to ensure that the same rules of public procurement procedures apply within the EU regardless of whether the main parties are local or international contractors or consultants.
How TCP can help?
Are you an agency, contractor or employer operating in the Swedish market? In Sweden, TCP offer our standard payroll services, where contractors are employed on our monthly payroll and the employer has a strictly work-based relationship. We also help employers, agencies and contractors to negotiate the complexities of the tax system, especially the tax relief for foreign personnel, SINK and the special rules on expenses.
Our team would be happy to help or answer any questions you may have. Call us on +44 (0)208 5800 800 or contact us via info@tcpsolutions.com. If you like what you have seen so far and would like to keep up to date with our latest news and advice, please sign up to our newsletter here.
