Four in ten contractor clients plan no changes post-AWR
Four in ten, or 42%, of client organisations are planning no changes to their use of flexible workers, including contractors, when the Agency Workers Regulations (AWR) come into force on 1 October 2011. The Recruitment and Employment Confederation’s (REC) July JobOutlook confirms that 83% of client organisations plan to maintain or increase their use of agency workers in the coming 12 months. “The data on general hiring intentions is encouraging,” explains REC Director of Policy Tom Hadley. “Although some employers may see reducing agency use as an obvious short term option, the need for flexible staffing arrangements will outweigh concerns over AWR in most sectors”. More…
Interim management contractors can help plug the UK’s leadership skills gap
For interim management contractors with proven leadership and change management skills, the UK presents a target-rich environment according to a survey by talent management consultancy Development Dimensions International (DDI) and the Chartered Institute of Personnel and Development (CIPD). The survey shows that only 18% of HR professionals and 36% of UK business leaders rate the quality of leadership in their organisation as ‘high’. However, the CIPD’s Head of HR Practice Development Vanessa Robinson urges organisations to nurture existing talent in-house. More…
No change to advisory fuel rates for contractors with company cars
From 1 September 2011, limited company contractors with company cars will continue to claim the same mileage allowance as the advisory fuel rates (AFR) for petrol and diesel engines published HMRC remain unchanged. AFR for contractors with LPG (liquefied petroleum gas) fuelled vehicles with engines sized between 1401 to 2000cc has actually fallen by a penny, leaving them slightly worse off. HMRC reviews AFR every quarter, basing its rates on actual pump prices gathered by the AA and motor industry statistics on fuel economy and the composition of the UK’s vehicle fleet. More…
IT contractor fortunes may remain secure despite an unexpected contraction in the UK business services sector
IT contractors operating within the business and professional services sector will benefit from sustained IT investment in the sector, despite an unexpected contraction in business volumes. According to the August quarterly Confederation of British Industry (CBI) Service Sector Survey business volumes in the sector, which includes industries such as accounting, legal and marketing, fell for the first time since November 2009. Despite “tough trading conditions” the CBI reports that IT investment intentions are at their highest level since November 2007 and business and professional services firms have increased recruitment. More…
Falling North Sea production could reduce long-term UK demand for oil & gas contractors
Oil & gas contractors could start to experience falling domestic demand for their services as the North Sea’s oil production is forecast to steadily decline by 53% between 2010 and 2020. The forecast, by Business Monitor International (BMI) in its United Kingdom Oil & Gas Report Q3 2011, describes the UK’s upstream market as “major, but highly competitive”. However, the longer term prospects for oil & gas contractors will inevitably be reduced, or move into the downstream and renewable sector, as production falls. More…
Contractors running out of tax haven options: even house owners may be targeted by HMRC
Contractors with offshore assets are rapidly running out of options free from HMRC’s reach and regulation. In an article published by Accountancy Age, Jaime Kaffash reports that a “senior source” at HMRC has confirmed it plans to target territories such as the British Virgin Isles and Panama. These “tax havens” allow the formation of companies without collecting ownership information, allowing contractors to hide cash or even trade anonymously. In a separate report, Accountancy Age’s Kevin Reed warns that HMRC may be using mortgage application information to target contractors with more than one property who are evading income tax and capital gains tax (CGT) on property transactions. More…
Tax take of one of IT contracting’s largest markets – banking - revealed for first time by HMRC
The tax receipts of the UK’s banking sector, one of the largest consumers of IT contractor services, has been revealed for the first time by HMRC. In the most recent tax year, 2010-11, the UK banking sector contributed £21bn in income tax and corporation tax to the exchequer. This contrasts with a high of £23.2bn in the 2007-09 financial year. The actual amount of tax contributed by the sector could be understated because the contribution only includes corporation tax, employers’ National Insurance Contributions (NICs) and employee income tax and NICs gathered via Pay As You Earn (PAYE), and does not include the contribution of the significant number of contractors working in the sector. More…
Fall in UK manufacturing output could damage contractors’ prospects
Contractors working in the previously buoyant manufacturing sector may find their prospects worsen as the UK’s manufacturing output fell in August. The Markit/Chartered Institute of Purchasing and Supply (CIPS) Manufacturing Purchasing Managers’ Index (PMI) for August posted its lowest reading for 26 months. Employment in the sector also decreased in August and new work from overseas customers fell sharply. According to CIPS Chief Executive David Noble, a flood of new contracts seems unlikely: “Though job losses were restrained, the ongoing turbulence of recovery is likely to discourage any significant new job creation for the time being.” More…