Bosses of company that installed Grenfell Tower cladding 'pumped £2.5m into tax avoidance schemes'

  • Ray Bailey and wife Belinda were director and secretary of Harley Curtain Wall 
  • Company went bust in 2015 allegedly owing creditors more than £1.1million 
  • HMRC accused it of ploughing £2.5m into two alleged tax avoidance schemes 
  • Harley Curtain Wall later bought by Mr Bailey's company Harley Facades Ltd
  • Harley Facades installed Grenfell Tower cladding in £2.6m contract
By MARTIN ROBINSON, UK CHIEF REPORTER FOR MAILONLINE
PUBLISHED: 16:42 BST, 16 June 2017 | UPD

 The bosses of the company that installed Grenfell Tower's allegedly deadly cladding was accused by HMRC of pumping £2.5million into tax avoidance schemes, MailOnline can reveal today.
Ray Bailey and his wife Belinda were director and secretary of Harley Curtain Wall, which went bust in 2015 allegedly owing creditors £1.1million. 
Despite being liquidated with significant debts it was later bought by Harley Facades Ltd, Mr Bailey's other firm, who did the Grenfell Tower job in a contract valued at £2.6 million.
Their cladding sparked 'like a match' and helped engulf the 27-story building, it has been claimed.
Cladding boss Raymond Bailey's previous company Harley Curtain Wall went bust and was accused by HMRC of putting £2.5million into tax avoidance scheme, MailOnline can reveal
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Cladding boss Raymond Bailey's previous company Harley Curtain Wall went bust and was accused by HMRC of putting £2.5million into tax avoidance scheme, MailOnline can reveal
HMRC said £981,000 was paid into an 'employment benefit trust' and £1.5million was placed into a 'business benefit trust' it called tax avoidance schemes (shown in the company insolvency documents)
HMRC said £981,000 was paid into an 'employment benefit trust' and £1.5million was placed into a 'business benefit trust' it called tax avoidance schemes (shown in the company insolvency documents)
Burning debris falls from a massive fire that raged in a high-rise apartment building in London and killed at least 30 
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Burning debris falls from a massive fire that raged in a high-rise apartment building in London and killed at least 30 
Insolvency documents seen by MailOnline reveal that in September 2015 HMRC told administrators Mr and Mrs Bailey's company put huge sums into two tax avoidance schemes.

CLADDING WAS USED TO 'IMPROVE THE APPEARANCE' OF THE BLOCK OF FLATS

This terrifying picture capture the moment burning debris fall from the inferno at the Grenfell tower block 
This terrifying picture capture the moment burning debris fall from the inferno at the Grenfell tower block 
The cladding at Grenfell was installed to improve insulation but also to make it pleasant to look at in the neighbourhood.
A planning document released by the council in 2014 said: 'Due to its height the tower is visible from the adjacent Avondale Conservation Area to the south and the Ladbroke Conservation Area to the east.
'The changes to the existing tower will improve its appearance especially when viewed from the surrounding area.'
The document also makes repeated reference to the 'appearance of the area'.  
HMRC said £981,000 was paid into an 'employment benefit trust' and £1.5million was placed into a 'business benefit trust'.
MailOnline has asked Ray Bailey's other company Harley Facades Ltd to comment on the claims - it is not known what, if anything, they paid to HMRC.
Tax inspectors said it could not discuss individual cases but it is known they tried to recoup £500million from thousands accused of using these avoidance schemes.
HMRC accused Harley Curtain Wall of using a tax loophole, shut in 2015, allowing companies to pay high earners through loans - rather than salaries - offered by offshore companies or trusts.
The loans allowed them to postpone or even avoid paying income tax or national insurance contributions.
More than 16,000 Britons including footballers, singers, TV presenters, City bankers and other wealthy investors were handed huge tax bills after being accused of using these schemes.
In 2014 stars including David Beckham, Ant and Dec and Gary Lineker were all accused of using similar alleged tax-avoidance schemes. 
The row over whether they were legal have been the subject of many court cases with individuals involved insisting they have paid all due taxes to the Government. 
Yesterday it was revealed that Ray Bailey and his company secretary wife Belinda have enjoyed an enviable lifestyle from the product.
They live in a grand house worth around £1million in Crowborough, East Sussex, where a Porsche and a Land Rover were parked in the drive yesterday.
Mother-of-three Mrs Bailey's Facebook profile shows her sitting next to a tiger on an exotic holiday and enjoying luxurious ski trips.
But yesterday the couple were reluctant to answer questions about the tragedy.
Grenfell Tower was equipped with metal over-cladding installed by Mr Bailey's company Harley Facades Limited in a contract valued at £2.6 million, according to the firm's website.
Mother-of-three Mrs Bailey, whose Facebook profile shows her sitting next to a tiger on an exotic holiday in 2011, insisted there 'was nothing to say' 
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Mother-of-three Mrs Bailey, whose Facebook profile shows her sitting next to a tiger on an exotic holiday in 2011, insisted there 'was nothing to say' 
The couple live in this grand house with large garden and swimming pool in Crowborough, East Sussex
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The couple live in this grand house with large garden and swimming pool in Crowborough, East Sussex
Harley Facades congratulated themselves on the work they had done at Grenfell on their Facebook page
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Harley Facades congratulated themselves on the work they had done at Grenfell on their Facebook page
These are the people missing and presumed dead in the tragedy and the overall death toll of 17 could reach more than 100
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These are the people missing and presumed dead in the tragedy and the overall death toll of 17 could reach more than 100
Harley Facades is reported to have used a similar aluminium composite material to clad several high rises and public buildings throughout the UK, raising fears for the safety of thousands of other residents.

How offices have stricter fire safety on sprinklers than homes

High rise buildings and big commercial buildings are required under law to have sprinklers fitted - but most domestic houses don't have them. 
Older high-rise buildings also don't have to have sprinklers, which is why none were fitted in Grenfell Tower. 
In England new residential blocks over 100ft (30m) high must have sprinklers, as well any uncompartmented area of a shop or self storage building over 21,500 sq ft (2,000 sq m).
In Scotland, from May 2005 all new residential care homes, sheltered housing and high rise domestic accommodation above 60ft (18m) high have had to be fitted with sprinklers.
A similar rule was brought in in Wales in April 2014, while since January 2016 all new and converted single family dwellings now have to be protected with approved automatic fire suppression systems.
There are believed to be 4,000 tower blocks that do not have sprinkler systems around the UK.
This is despite a coroner's report in 2013 into the Lakanal House fire ruling that that all high-rise buildings should be retro-fitted with sprinklers.
Derbyshire firefighters have been campaigning since 2011 for sprinklers to be fitted in all new homes, claiming it could prevent the deaths of many people - including the Philpott children who died in Derby a year later in 2012.
Mrs Bailey, 56, yesterday denied any knowledge about the work at Grenfell Tower, insisting there 'was nothing to say' from behind the electric gates of their property.
Her husband, 58, who entered the curtain walling business straight from university, has boasted of 25 years of 'practical experience' on Harley Facades Ltd's website.
Mr and Mrs Bailey were director and secretary of Harley Curtain Wall, which went bust in 2015.
One customer demanded £428,000 for disputed work and the company in total owed £1.18 million, it was said.
Harley Facades Ltd, Mr Bailey's other firm,  has £151,000 in the bank and made £299,000 profit last year, according to its latest accounts.
The company, which installed but did not manufacture the panels fitting at Grenfell Tower, said in a statement they were a 'commonly used product in the refurbishment industry'.
Today the manufacturer Omnis Exteriors said the cladding was the cheaper more flammable version of the two offered.
Director John Cowley told the Guardian Omnis was asked to supply Reynobond PE cladding.
This is £2 cheaper per square metre than the other product Reynobond FR, whose FR stands for 'fire resistant'. 
Mr Bailey, 58, said on Wednesday night: 'This is an incredibly tragic incident. Our thoughts are with the residents and their families who have suffered such a personal loss.
'We will fully support and co-operate with the investigations into this fire. At this time, we are not aware of any link between the fire and the exterior cladding to the tower.'
He was unavailable for further comment yesterday, apparently holed up at his country retreat.
His mansion has three buildings with a large, covered swimming pool attached to the main house.
The property is in the village of Crowborough, which is also home to a string of celebrities. The drive leading to the house can only be reached through locked electric gates.
Mr Bailey enjoys skiing and motorsport, and is a long time loyal fan of Tottenham Hotspur. He has three sons, twins aged 27, and a 23-year-old.
Away from work his wife appears to own a number of designer cats and belongs to a breeder's group on Facebook.
Photographs from her profile also show her enjoying holidays by the sea - apparently in Britain and abroad - and in the Alps.
Grenfell Tower was clad last year as part of an £8.6million refurbishment by builders Rydon, whose boss has insisted that its work 'met all required building controls'.
Rydon's chief executive, Robert Bond, said the work was signed off by the council's building control officials.
Mr Bond, who has four daughters in their twenties, lives in a £2million mansion on a private estate in Orpington, Kent.
Rydon's CEO Robert Bond (pictured with his wife at a classic car event) said last night the work 'met all required building regulations' and was signed off by the council's building control
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Rydon's CEO Robert Bond dressed as a clown
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Rydon's CEO Robert Bond (pictured with his wife at a classic car event, and right as a clown on Facebook) said last night the work 'met all required building regulations' and was signed off by the council's building control
Belinda Bailey, pictured on a ski trip, has served as secretary for her husband's cladding company
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Belinda Bailey, pictured on a ski trip, has served as secretary for her husband's cladding company
He is believed to own an Aston Martin with a private 'Bond' number plate, and a silver convertible Porsche was parked outside his impressive home yesterday.
His wife Tina Bond answered the door of her mansion when asked for comment and if her husband was home.

How MailOnline readers can donate to a charity helping the Grenfell Tower fire victims

The Grenfell Tower fire has prompted an extraordinary outpouring of support from Britons as they try to help the victims both financially and with gifts of food, clothing and other essentials.
And MailOnline readers can donate to a charity co-ordinating efforts to help those whose lives were devastated by clicking here.
The money will go to the Kensington & Chelsea Foundation, the company’s local charity partner.
The foundation is coordinating a major funding appeal with support from London Funders and the London Emergency Trust Fund, and has set up a donation page on its website.
Every penny raised on the site will go directly to charities funding the relief effort in the local community, both for those who lost loved-ones and those who lost their homes and all their possessions.
Readers can also donate via cheque. Please make cheques payable to ‘The Kensington & Chelsea Foundation’ and send to: Grenfell Tower Appeal, The Kensington & Chelsea Foundation, 111–117 Lancaster Road, London W11 1QT.
The gutted block is just over a mile from the MailOnline and Daily Mail offices in Kensington, West London, known as Northcliffe House.
Daily Mail and General Trust (DMGT) chairman Lord Rothermere and chief executive Paul Zwillenberg last night announced a £100,000 donation to the charity. 
She said, 'Thank you and goodbye,' before closing the door.
The married couple appear to share a love for classic sports cars and posed together in front a classic silver Ferrari.
Mrs Bond's Facebook account shows the family enjoy a luxury lifestyle, including holidaying on a yacht.
One photograph showed Mrs Bond and her four daughters posing in bikinis in crystal-clear waters on an exotic holiday to a destination that appears to be in south-east Asia.
The £8.6million refurbishment by Rydon and the cladding by Harley Facades Ltd will be a key issue at the public inquiry into the Grenfell blaze. 
The first contractor chosen to refurbish Grenfell Tower was dropped to save cash, it was revealed today.
Kensington and Chelsea Borough Council became unhappy when preferred bidder Leadbitter told them the required works would cost £11.27 million because it was £1.6million more than they wanted to spend.
A housing report from 2013 shows that unless the price dropped the contract would be put out to tender again to ensure better 'value for money'.
Rydon would later win the work by saying it could replace windows, install a new heating system for flats and add the cladding, which experts believe accelerated the fire, for £8.7million. 
The deal done after re-tendering the Grenfell Tower saved the council £2.5million. 
A public inquiry into Wednesday's fire that is feared to have claimed more than 100 lives will consider whether the reduced price led to any impact on safety.
Sky News reported that sources had told them 70 people are missing and feared dead.  
Rydon and Harley Facades Ltd, who installed the cladding, say the work 'met all required building regulations' and was signed off by the council's building control. 

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Kensington and Chelsea Council became unhappy when preferred bidder Leadbitter quoted £11.27million for the work - because it was £1.6million more than they wanted to spend
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Kensington and Chelsea Council became unhappy when preferred bidder Leadbitter quoted £11.27million for the work - because it was £1.6million more than they wanted to spend


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