Treasury Secretary brands legitimate tax avoidance as evasion
Contractors employing legitimate tax mitigation strategies may find themselves firmly in the sights of HMRC and its £900m war chest. This follows an announcement by Chief Secretary to the Treasury Danny Alexander, who has told the Liberal Democrat Party Conference that there is to be a crackdown on tax evasion and avoidance. That avoidance is appearing in the same speech as ‘evasion’ and ‘crackdown’ shows a worrying blurring of legitimate tax mitigation and illegal tax evasion. More…
Contractors’ key role in economic recovery acknowledged by Chatham House
A predicted fall in consumer spending in 2011 is the cause of reduced economic growth forecasts by the Confederation of British Industry (CBI) in its latest GDP projections. But UK PLC is well placed to sustain modest growth because of its highly skilled flexible contractor workforce. Commenting on the CBI’s forecast to BBC News, Paola Subbacchi of research organisation Chatham House said: “What is important is flexibility to adapt to change and difficult circumstances. In the UK I can see strengths because of the more flexible labour market.” More…
HMRC closes PAYE improvements consultation
Contractors inside IR35 and contracting through umbrella companies may find their income tax and National Insurance Contributions (NIC) calculated and deducted automatically by a centralised HMRC tax system, if proposals in a recent HMRC consultation are implemented. The consultation, Improving Operation of Pay As You Earn (PAYE), which closed this week, asks tax professionals and businesses whether a real-time centralised system is what’s needed to better cope with modern UK working patterns. More…
PCG inaugural National Freelancers Day lecture to be hosted by Sue Lawley
Broadcaster Sue Lawley is to host the inaugural Freelance Lecture at Stationers’ Hall in London on National Freelancers Day 23 November 2010. Lawley will introduce keynote speaker Dr James Bellini and chair the subsequent question-and-answer session with the expert panel and audience. “Throughout my journalistic and broadcasting career I have always been aware of the importance and impact freelance professionals have on the media,” says Lawley, herself a freelancer. “More recently, I have watched with interest the growth in other sectors as people throughout the UK have opted for this life/work choice. … I look forward to hearing what James Bellini envisages for the future and all our tomorrows.” More…
Manufacturing sector forecasts ongoing growth
Contractors working in the manufacturing sector continue to benefit from strong order books and factory output. According to the Confederation of British Industry (CBI), demand for UK manufactured goods is forecast to grow solidly in the next three months. The CBI’s Chief Economic Adviser, Ian McCafferty, confirms that demand has increased throughout the year, and looks forward to continuing growth. “Demand is still considered to be better than it was in the first half of the year, export order books are holding up reasonably well and expectations for production growth in the coming quarter remain solid.” More…
Holiday period knocks London’s financial service sector job demand
According to the Morgan McKinley, job opportunities in London’s financial services sector showed an 8% drop in August compared with July. However, year-on-year job opportunities in The City were up 33% compared to August 2009. As London’s financial centre is the UK’s largest consumer of IT contractors, any improvement in its fortunes directly impacts on demand for IT contractors. Fortunately, the dip in August is seasonal, as Morgan McKinley Financial Services MD Andrew Evans explains: “Typically, during the July/August holiday period, recruitment activity slows down as hiring managers and jobseekers take annual leave. August 2010 has been no exception in terms of job availability with an 8% month-on-month decline in newly available roles in financial services.” More…
Demand for contractors in Scotland slows, but IT continues to buck trend
The rate of increase in demand for temporary workers in Scotland was at its slowest since September 2009, according to Augusts’ Bank of Scotland Report on Jobs. However, IT and computing contractors were in greatest demand in Scotland for the tenth month running, with engineering and construction in third place. Contracting in Scotland appears to be a safe haven compared with being a permanent employee – total permanent employment fell in August, salaries are falling and demand for permanent staff fell for the first time in nine months. More…