The government has postponed the introduction of the planned changes to the controversial IR35 legislation, which implements heavier tax burdens on freelancers and the self-employed. The new rules will now come into force on 6 April 2021, as opposed to the same date in 2020.

Speaking to the House of Commons on the evening of 17 March, chief secretary to the Treasury Steve Barclay (pictured) said: “The government is postponing the reforms to the off-payroll working rules, IR35, from 6 April 2020 to 6 April 2021.”

Addressing the Commons, Barclay said the suspension is in response to the ongoing spread of Covid19 to help businesses and individuals. He said: “This is a deferral, not a cancellation, and the government remains committed to reintroducing this policy to ensure people working like employees but through their own limited company, pay broadly the same tax as those employed directly,” he added.

Andy Chamberlain, director of policy at the Association of Independent Professionals and the Self-Employed (IPSE) said the government has done “the sensible thing” by delaying the changes to IR35 in the private sector.

In a statement released late Tuesday evening, Chamberlain said: “These changes have already undermined the incomes of many self-employed businesses across the UK. However, they would have done even more serious damage if they had gone ahead as planned.

“It is right and responsible to delay the changes to IR35 for at least a year during the coronavirus [Covid19] crisis, to reduce the strain and income loss for self-employed businesses.

However, Chamberlain has reaffirmed that more needs to be done to support self-employed businesses and has called for an emergency Income Protection Fund. He said: “This is a sensible step to limit the damage to self-employed businesses in this grave and unprecedented situation, but we also urge the government to do more. It must create an emergency Income Protection Fund to keep the UK’s crucial self-employed businesses afloat.”

Looming changes to IR35 rules are causing widespread concern in construction.

HMRC rules are due to change from April 6 making contractors liable for determining the tax status of off-payroll professionals.

Major contractors have been auditing freelancers employed via personal service companies as thousands of professionals are braced for a move back to PAYE.

The government is now calling for evidence from affected individuals and businesses to ensure “smooth implementation of the reforms.”

Financial Secretary to the Treasury Jesse Norman said: “We recognise that concerns have been raised about the forthcoming reforms to the off-payroll working rules.

“The purpose of this consultation is to make sure that the implementation of these changes in April is as smooth as possible.”

Current rules allow workers to be employed via a personal service company (PSC) which determines whether IR35 tax rules should apply.

That responsibility is due to shift from April to contractors who will determine employment status.

Freelance workers fear they will lose out through higher tax payments while contractors will also face bigger bills from direct employment.

The government is also reviewing its Check Employment Status for Tax (CEST) online tool which has attracted widespread criticism.

Chancellor Sajid Javid is promising to review looming freelance tax rule changes which are causing widespread concern in construction.

HMRC IR35 rules are due to change next April making contractors liable for determining the tax status of off-payroll professionals.

Major contractors have been auditing freelancers employed via personal service companies as thousands of professionals are braced for a move back to PAYE.

But Javid told the BBC Radio 4’s Money Box programme “We’ve already said that we’re on the side of self-employed people.

‘We will be having a review and I think it makes sense to include IR35 in that review.”

Current rules allow workers to be employed via a personal service company (PSC) which determines whether IR35 tax rules should apply.

That responsibility is due to shift from April to contractors who will determine employment status.

Freelance workers fear they will lose out through higher tax payments while contractors will also face bigger bills from direct employment.

One industry expert said: “They are desperate for any vote they can get so alienating a million freelancers is not a good idea.”

A Skanska-led joint venture is starting to prepare the way for a record-breaking pipeline push 30m below the River Humber for National Grid.

Eight 610m sections of concrete cased pipes will be pushed through Humber River tunnel
The firm has just completed the 18-month first stage tunnel drive for the £100m gas transportation project slightly behind programme.

Now preparation work is getting underway to attempt the challenging pipe-jacking feat.

This will involve painstakingly pushing eight, 610m sections of pipe at about one metre a minute through the 5km tunnel.

Before the two hydraulic thrust machines start the epic task next spring, the team must first dismantle the 3.65m diameter TBM Mary.

Steve Ellison, lead project manager of Capital Delivery at National Grid, said: “It’s the first time a tunnel has been constructed beneath the River Humber and a fantastic achievement for everyone involved.

“Over the next few weeks we’ll be dismantling the tunnel boring machine and lifting her out of the ground in sections, ready to be transported back to Germany, where as much as possible will be refurbished and renewed to get her ready for her next tunnelling job.

“The next steps for us here under the Humber involve clearing the pipes, cables and ancillary equipment that has been servicing the tunnel boring machine and preparing for the world record-breaking pipeline installation early next year.”

Hydraulic thrusters will be installed at the Goxhill site on south side of river for the epic pipeline push

The 850-tonne sections of pipe will be pushed on rollers into the new tunnel from Goxhill on the south side. To aid installation the tunnel will be flooded with water.

When one pipe section has been installed, the next will be moved into position, welded to the one in front, and the push will continue until all of the pipeline is installed beneath the river.

When complete it will be the longest hydraulically inserted pipe in the world.

For those unfamiliar with the basic definition; the counter offer is a last-minute bid by a company to retain an employee who has handed in a notice of resignation.

Over the years we have seen many a counter offer put on the table from frantic employers and in this article, we are going to cover both the positives and negatives of accepting; whilst shining some light on the subject.

And In the famous words of The Clash, “Should I stay or should I go now?”

What is a Counter Offer?

A counter offer is an attempt to entice an employee to stay with their employer after they have received an offer for another job position. The counter offer can consist of a raise to salary, an increased benefits package (company car, bonus, etc.), a promotion or new role within the company or just a few words of reassurance and promises of a brighter future. This is done in the hope that this increased ‘deal’ will change the employee’s mind and get them to stay.

Pros of Accepting a Counter Offer

• The straightest forward counter offer is financial and this tends to benefit employees who are generally happy with their job but feel they are being financially undervalued. This can be resolved by their employer increasing the employee’s annual salary or some of the other financial benefits.
• If the dissatisfaction runs deeper and is widely felt then a benefit of a long-term, highly regarded employee resigning their post is that it can give a wakeup call to their employer which can lead to change that, not only benefits the individual, but also the overall team. Whilst no one person is bigger than a company, losing key staff can be very disruptive and costly so making a few changes to improve the general feeling can be a benefit to both employer and the team.
• Where the issue goes beyond finance and self-worth then the employee may be looking for more responsibility and a new challenge. When recruiting, the natural tendency for many employers is to look outside whilst overlooking existing staff who may have transferable skills. A resignation could, therefore, start talks regarding a step up or it could open doors to new responsibilities whilst putting plans in place for further career progression. This can leave the employee in a better position, knowing that their aspirations are being considered and that there is potential to progress within the company.

Cons of Accepting a Counter Offer

• Financial gain tends to be short-lived once the shine of an increased salary wears off and the extra money has been absorbed into our daily living. Once this happens the other reasons for our dissatisfaction starts to resurface and it’s only a matter of time before we are scrolling through the job advertisements again. Statistically, over 70% of people who accept a financial counter offer start looking for a new job within six months either because of their renewed unease or (in recessionary times) an unexpected redundancy notice.
• However well regarded an employee is, they are rarely viewed the same by an employer after a counter offer, who may now feel let-down at having been put in that position; and who may forever question the employee’s loyalty. This often shows up when salary reviews, bonus payments and promotions come up; or when cut backs in the company occur.
• Beware the promise of a brighter future that comes in the form of a promotion or new role ‘in six months’ time’ or ‘once your current project completes’. Talk is cheap and often the promise of change simply buys the employer time to plan for the employee’s departure and line up a replacement.
• Even if a pay increase or promotion IS forthcoming then consider why it has only been offered in a last-minute bid to stop you from leaving rather than in authentic and planned recognition of your value to them. If your employer knew about your concerns or wanted to improve your circumstances then why did they leave it to such a late stage, and will it take another resignation to get that next increase? Similarly, how will your colleagues feel towards you knowing that you strong-armed your position?
• For me, the biggest downside is often overlooked. To get to the resignation stage, it’s likely that you invested time in finding and interviewing for a position that you wanted, with a company that you liked; and to whom you suggested (at least verbally) that you would be accepting their offer. Companies rarely enjoy feeling as though their offers have been used and often disregard future applications from those that have ‘let them down’.

There are always pros and cons to decisions and sometimes a counter offer can occasionally be a great opportunity for change while often it’s a quick fix for 6 months before the original feelings return even stronger and it’s back to square one.

If you’re considering new opportunities then head over to our jobs page where you will find an extensive list of current available vacancies, alternatively call either our London or Midlands offices, we’d be pleased to hear from you.