IT contractors to benefit from above-average IT sector jobs growth
IT contractors will benefit from 500,000 new permanent and contract roles forecast for the UK IT sector over the next decade, according to research by e-skills UK. The business and information technology sector skills council is predicting IT jobs growth of five times the national average at 2.19%, and confirms that such growth continued to rise throughout 2010, despite the recession. More…
Financial services IT contractors can look forward to upbeat 2011
IT contractors supporting the financial service sector are set to enjoy an upbeat 2011 – Morgan McKinley’s 2011 Hiring Market Survey results show 58% of managers surveyed expect hiring levels to rise. This contrasts with December 2010’s Morgan McKinley London Employment Monitor, which reported a 48% drop in new vacancies. Seasonal factors and the bad weather are cited for this by Morgan McKinley Financial Services Managing Director Andrew Evans. He explains: “December is traditionally a slow period in the recruitment cycle due to Christmas and New Year…this was compounded by particularly bad weather.” More…
Contractors move closer to a General Anti Avoidance Rule (GAAR)
Contractors may be a step closer to being subject to a General Anti Avoidance Rule (GAAR). HM Treasury has created a new study group to explore the case for a UK GAAR. Such a rule could benefit contractors by removing much of the uncertainty surrounding IR35, whilst also restricting the activities of potentially non-compliant contracting services providers. But a GAAR could also sweep many legitimate contractors into paying more tax. The study group is to report back to the Treasury David Gauke by the end of October 2011. More…
Contractors are not alone in their demands for a simpler tax regime
Contractors frustrated with the complexities of the tax system have been joined by small business owners who would pay to see taxation simplified. A survey by the Forum of Private Business (FPB) reveals that 57% of business owners surveyed would pay more tax in exchange for a simplified system. “The cost of complying with Britain's hugely complex tax system is such that, if simplification and profitability result, most businesses believe a little more tax would be a price worth paying,” explains FPB Chief Executive Phil Orford. Respondents also called for the tax burden of ‘employees and the self-employed to be closer aligned in any reform of IR35’. More…
More female interim management contractors than ever before
The number of female interim management contractors has reached an all time high, increasing to 39% of interim assignments according to the Interim Management Association’s Market Audit for the third quarter of 2010. Public sector assignments grew from 48% in the second quarter to 52% in the third quarter of 2010, overtaking the number of private sector assignments. By sector, banking and finance was the largest single consumer of interim managers, accounting for 39% of all private sector assignments. More…
High-tech manufacturing could be hot target market for contracting opportunities
The high-tech manufacturing sector could present contractors with significant contract opportunities in 2011. In a survey commissioned by General Electric (GE), three quarters of manufacturers were upbeat about current performance and 71% expected the next 12 months to be better. With high expectations of export performance, and plans to increase headcount by an average of 5.7%, the high-tech manufacturing sector could boost UK economic growth, as well as contractor fortunes. GE CEO Mark Elborne explains: “It shows a vibrant and positive sector that can help revitalise the UK economy over the next few years. Many of those surveyed had a positive 2010 and feel confident about 2011.” More…
Austerity measures to start impacting on IT contractors, sometimes positively
IT contractors working in the public sector will begin to feel the impact of public sector spending austerity measures as local authorities find budget savings by cutting IT spend. One of the first to show its hand has been Hampshire County Council, where cost-cutting measures will see £1m slashed from the council’s IT budget from April 2011. Other local authorities are expected to take similar action. However, with headcounts frozen, short term and ad hoc demand for contractors and interims is likely to increase to maintain the delivery of essential frontline services. More…
KPMG publishes latest tax guidance for oil and gas contractors
KPMG has published its latest Guide to UK Oil and Gas Taxation 2010, which includes guidance for contractors working in the oil and gas sector. Expert advice on oil and gas sector taxation is essential for those spending time working offshore, as the tax residence status of contractors can vary according to the roles performed, the exact location of each assignment and the residency of the end-user client or owner of the facility where the contract is fulfilled. Understanding the various rules can make a considerable difference to the post-tax income of contractors in the oil and gas sector. More…