HMRC plans a review of its Business Record Checks (BRC) campaign
The threat of unwelcome inspections by the taxman could be lifted from limited company contractors following HMRC’s announcement that it plans to review its Business Record Checks (BRC) campaign. Accountancy Age’s Jaimie Kaffash writes that the review is due to “pressure from the professional bodies, MPs and small business groups”. HMRC told Accountancy Age: “HMRC recognises that the launch of the business records checks pilots has caused considerable concern ... and that the project would have benefited from more detailed consultation with tax professionals at an earlier stage.” Whether or not the taxman’s review of its campaign lifts the threat of inspections remains to be seen. More…
Contracting sector stands to benefit from ongoing economic uncertainty
Contractors may well benefit from the ongoing economic uncertainly reflected in the first economic reports of 2012. According to the three key Markit/Chartered Institute of Purchasing and Supply (CIPS) Purchasing Managers’ Indexes for December 2011:
- The service sector is growing at the strongest rate since July, having experienced growth throughout 2011
- For the first time in nine months, the construction sector is showing growth in all three categories: civil engineering, housing and commercial
- Whilst not quite back in growth territory, in December the manufacturing sector reversed the contraction seen in November.
Business confidence continues to be low and hiring intentions modest. But such uncertainty tends to work in favour of contractors, who represent a low-risk alternative to employees for clients covering capacity demands and skills shortages. More…
Avoid self-employment as AWR solution, or seek expert advice, contractors warned
Contractors considering self-employment to circumvent the Agency Workers Regulations (AWR) have been warned by the Association of Recruitment Consultancies (ARC) that, without expert assistance, they could be entering a minefield. Theresa Mimnagh, of ARC’s legal partner Lawspeed, says contractors could also jeopardise their tax status or even fall foul of the Managed Service Companies (MSC) legislation. “[Self-employment] comes with issues and risks that should be considered carefully,” explains Mimnagh. “It is always best to get independent advice”. More…
Contractor demand growth to be driven by chronic specialist skills shortage in 2012
Contractors are likely to continue bucking labour market trends and benefit from growing demand for specialist skills. According to the Chartered Institute of Personnel and Development’s latest report A barometer of HR trends and prospects 2012, 75% of UK organisations reported difficulties in filling vacancies, and 72% cited a lack of specialist skills as the principal cause. Managerial, professional and technical positions are the hardest to fill. More…
Core contracting disciplines drive annual vacancy growth of 17%
The core contracting disciplines of engineering and IT were major contributors to an annual increase of 17% in job opportunities, according to the December Reed Job Index. Managing Director of reed.co.uk Martin Warnes attributes the monthly fall to seasonal factors. “The fact that the number of new job vacancies on offer remains 17 per cent higher than 12 months ago is significant. Skilled technical staff in traditional areas of heavy industry, like engineering, have been especially sought after, alongside IT, telecommunications, leisure and tourism staff,” says Warnes. More…
Poor corporate pay rates may drive more employees into contracting in 2012
Contracting could benefit from an influx of new workers seeking inflation-busting pay rises during 2012. The Chartered Institute of Personnel and Development’s annual Employee Attitudes to Pay survey reveals that over half of all UK workers did not receive any pay rise, or actually received a pay cut, in the 12 months to November 2011. The average pay increase of those receiving a rise was 2.5%, less than half the rate of inflation. Contracting can offer a viable alternative to employees currently trapped in roles with no prospects of above-inflation pay rises, particularly those with specialist skills in great demand. More…
Contractors offered insights into future science-based contracting growth sectors
Contractors seeking potential growth areas of the economy for future new contracts may wish to put the UK’s science industry on their radar. Universities and Science Minister David Willetts recently outlined renewed commitment to the Government’s high tech enterprise strategy and called for proposals for “a new type of university with a focus on science and technology”. The objective is to secure private sector money to fund an expansion of the UK’s science and engineering base, which could lead to fresh opportunities for contractors.
Property values mostly rise in November, but suffer annual loss in 2011
Contractors with property portfolios will take some cheer from the latest Land Registry data on house prices, the House Price Index, which shows an increase of 0.3% in average house prices between October and November. However, the monthly increase is set against a backdrop of less welcome news from the Land Registry, which confirms a 1.9% fall in house prices in the 12 months to November 2011. The overall figures mask regional variations, with contractors holding London-based property portfolios enjoying 1.4% year-on-year increase in prices, whereas those in the North East would have seen their property values fall by 5.4%.