Swedish Derogation no ‘miracle solution’ for contractor umbrellas
The Swedish Derogation is no ‘miracle solution’ for contractor umbrella companies seeking to keep their contractor clients outside of the Agency Workers Regulations (AWR), warns Lewina Farrell of the Recruitment and Employment Confederation (REC). Changes to the guidance issued by the Department for Business, Innovation and Skills (BIS) means workers gain more rights after 12 weeks than previously thought. This may make business models based on the Swedish Derogation unworkable. More…
Contractor tax avoidance schemes should be named, proposes HMRC
‘High risk’ contractor tax avoidance schemes unlikely to deliver the tax savings they promise should be listed, according to a consultation published by HMRC. The document, ‘High Risk Tax Avoidance Schemes’, suggest that users of such schemes will be required to disclose the scheme to HMRC. “These are highly aggressive and artificial tax avoidance schemes which we want to stop,” says Exchequer Secretary to the Treasury David Gauke. More…
UK interim management contractors see surge in demand from international clients
UK-based interim management contractors are experiencing a surge in demand from international clients. The Interim Management Association’s (IMA) Ipsos MORI industry benchmark survey for Q1 2011 also shows the total number of new assignments has increased by 13% compared to the previous quarter. “Overall the figures from Q1 are relatively positive,” explains IMA Chair Jason Atkinson. “However, the global market picture is much wider, and we are seeing a very interesting trend in the surge in demand specifically for British interims in the global market. More…
Brussels deal means contractors may see a reduction in financial reporting requirements
Contractors could benefit from a deal struck between European Union business ministers to reduce the administration and financial reporting burden for small companies. According to the Department for Business, Innovation and Skills (BIS), there are 1.5m ‘micro-entities’ in the UK with annual sales below €500,000 and a balance sheet of less than €250,000. These organisations, which include many contractors, stand to benefit from simplified rules on profit and loss and balance sheet reporting requirements. More…
Recruitment remains upbeat for construction and manufacturing contractors
Contractors working in the construction and manufacturing sectors continue to enjoy ‘buoyant’ recruitment, despite the softening of growth in the manufacturing sector. The Markit/Chartered Institute of Purchasing and Supply (CIPS) Manufacturing and Construction Purchasing Managers Index (PMI) both indicate that employment in the sectors is increasing, as is growth. Although construction is experiencing growth despite the slowdown in public sector spending, manufacturing grew at its lowest rate since September 2009. More…
Contractors experiencing two-track services market, says CBI survey
Contractors working in the business-to-business sector are enjoying increasing work levels compared to those with consumer clients, according to the latest quarterly Confederation of British Industry (CBI) Service Sector Survey. The business and professional Services segment, comprising businesses like accountants and marketing agencies, experienced the fastest rise in business since November 2007. In contrast, consumer services firms experienced a decline in business levels and employment. More…
Permanent Chair and Tax Director sought for Office of Tax Simplification
The Treasury has opened the recruitment process to replace John Whiting, the interim Tax Director, and the Rt Hon Michael Jack, Chairman, at the Office of Tax Simplification (OTS). Whiting oversaw the investigation into IR35 that resulted in Chancellor George Osborne deciding to retain the legislation in its current form as part of the 2011 Budget. Both Whiting and Jack took on their respective roles on an interim basis when the OTS was formed in July 2010. More…
Contractors will benefit if VAT staff hire concession debate is reopened
Contractors working in the public sector, financial services and the third sector could benefit if the Association of Recruitment Consultancies (ARC) succeeds in its attempts to reopen the VAT hire concession debate. Before April 2009, non-VAT-registered organisations were exempt from VAT charged by employment businesses, saving clients considerable sums on contractor hire costs. A recent tax tribunal ruling has highlighted the issue, and ARC’s campaign is aimed at reinstating the concession. If successful, it could bring down the cost of hiring contractors, which could ultimately lead to higher contractor rates. More…