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IR35 Postponed

 

Last night the Government announced that reform to the off-payroll working rules has been postponed for one year from 6 April 2020 until 6 April 2021. The rules would have applied to Limited Company Contractors providing services to large or medium-sized private sector organisations in an attempt to ensure that people who were working like employees, but through their own limited company pay broadly the same tax as employees.

HMRC has confirmed that the off-payroll working rules are postponed not cancelled and that the intention of the postponement is to provide businesses and individuals with support in light of the COVID-19 pandemic.

VAT Reverse Charge Delayed

HMRC has reflected upon its decision to implement the VAT Reverse Charge on 1 October 2019, after concluding that UK businesses have had insufficient time to prepare.

Accordingly, it has decided to delay implementation for a period of 12 months. The VAT Reverse Charge will now operate from 1 October 2020. The link below provides additional guidance:

https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation

Construction 2025: Building for a better future?

Cranes

The construction industry faired badly during the 2008 recession, with output falling faster in this sector than the economy as a whole. Since 2009, there have been periods of retraction and growth, but industry experts now believe that the construction industry will go from strength to strength.

Last year, the UK construction industry contributed £103 billion to the economy, and in the third quarter of 2014, it employed 2.1 million people.

But what is planned for the future of the construction industry? Are we building for a better future?

The Construction 2025 Industrial Strategy provides a vision of how industry and government plan to work together to transform and grow the construction sector in the next decade.

The strategy sets targets and goals designed to improve this sector’s overall efficiency by:

  • reducing both the costs of construction and the whole life costs of assets by 33%;
  • reducing the overall time from inception to completion of new builds and refurbishment projects by 50%;
  • reducing carbon emissions by using new technology and new materials to reduce the ecological impact of construction on the environment by 50%;
  • reducing the trade gap between total exports and imports of construction products and materials by 50%;
  • creating a UK digital design hub with the emphasis on smart construction practices;
  • developing the UK’s existing trading relationships to foster new opportunities and investment;
  • Improving the image of the industry to attract new industry entrants by engaging with young people and maintaining a safe environment for them to work in;
  • Ensuring that the construction workforce has the necessary skills and experience, and that there is a common gateway to obtain the necessary training and qualifications;
  • The government also wishes to establish a method to determine in good time the demands that will be placed on the construction industry in order that any short falls in terms of labour, materials etc can be addressed before they arise;
  • identifying and resolving blockages in the supply chain; and
  • promoting an industry wide culture of research and innovation and knowledge sharing.

Our specialist construction recruitment consultants have their finger on the pulse with regards to construction recruitment trends and are able to provide recruitment solutions tailored to meet the challenges faced by our clients.

If you are a candidate looking for your next opportunity or a prospective client seeking a bespoke recruitment solutions contacts us on 0115 9400 068.