Contractors facing APNs at risk of bankruptcy, lawyers warn
Contractors who have been issued accelerated payment notices (APNs) by HMRC are at risk of going bankrupt, law firm RPC has warned. RPC argues that HMRC shouldn’t pursue insolvency proceedings to recover tax until the underlying dispute has been concluded, reports Economia. “It is extraordinary that taxpayers may face bankruptcy as a consequence of being unable to pay an amount demanded in an APN, when that sum remains in dispute,” notes head of tax at RPC Adam Craggs. APNs were introduced to tackle users of tax avoidance schemes and 24,000 have been issued by HMRC since August 2014. More...
HMRC customer service criticised by MPs
Contractors and other taxpayers are still suffering as a result of poor customer service from HMRC, members of the Public Accounts Committee (PAC) have said. In its report, the committee claims that that service is so poor that it could have an adverse effect on tax collection. In 2014-15, HMRC responded to just 72.5% of calls. Over the first half of 2015, this figure has now fallen to 50%. PAC expresses further disappointment that HMRC provided no indication as to when or to what extent its customer service would improve, beyond a vague aim to improve year on year. More...
Contractor outlook benefits from boost in business activity
Contractors are benefitting from largely positive prospects, as a result of the Purchasing Managers’ Indexes (PMIs) for October 2015 from Markit and the Chartered Institute of Purchasing and Supply (CIPS). The construction sector continued its strong trend of growth, whilst the manufacturing sector surprised all with a surge in output and new orders. Meanwhile, the services sector also recorded mild growth.
- The UK Manufacturing PMI saw the sector record significantly improved rates of growth in output and new orders, breaking from the subdued trend that the sector had fallen into. Headcounts rose for the thirteenth successive month, as firms made efforts to accommodate new order intakes. Experts are hoping that this is the start of a sustained re-emergence from recession.
- Demand growth in the construction sector accelerated to its fastest rate since November 2014, according to the UK Construction PMI. This was in part to another increase in output and an upturn in new order growth. Subsequently, “the UK construction sector remains firmly in expansion mode.” Looking ahead, respondents are optimistic, with 59% forecasting an increase in business activity, compared to just 7% expecting a decline.
- The UK Services PMI saw a slight rise in business activity and increased demand in October, although new business growth failed to accelerate from September’s 29-month low. Job creation strengthened to a five-month high, whilst headcounts rose to continue the trend that started back in January 2013. “The PMI surveys brought welcome news of faster economic growth at the start of the fourth quarter.”
Contractor concerns over oil and gas resources allayed by BP announcement
Oil and gas contractors concerned over future lack of demand due to diminishing resources no longer have to worry, after BP announced that global reserves may almost double by 2050, the Telegraph reports. This is due in large part to investment in new technologies, which it is estimated could increase the global proved fossil fuel resources from 2.9 trillion boe (barrels of oil equivalent) to 4.8 trillion boe. “Energy resources are plentiful. Concerns over running out of oil and gas have disappeared,” highlights BP Group head of technology David Eyton. More...
Contractors to benefit to tune of £100bn in infrastructure spending
Contractors look set to be amongst the main beneficiaries after Chancellor George Osborne pledged to spend £100bn on improving UK infrastructure by 2020. The announcement comes after the formation of the National Infrastructure Commission (NIC) which is set to determine infrastructure priorities. The initial focus will be placed on improving connectivity between northern cities and reviewing strategic options to develop road, rail and underground improvements in London. “This is about jobs, growth, living standards and ensuring Britain is fit for the future,” notes Osborne. More...
Confidence decline in contractor market due to T&S relief changes
Confidence in the contractor market has significantly declined since the second quarter of 2015. This is according to the latest Freelancer Confidence Index from the Association for Independent Professionals and the Self Employed (IPSE), which reports that 28% of contractors are confident in their business performance improving over the next 12 months, falling from 41% throughout Q2. This has been largely attributed to changes in public policy, such as the proposed restrictions to travel and subsistence tax relief and the introduction of tax on dividends. “We call on the Government to rethink these proposals to restore freelancers’ lost confidence,” notes IPSE CEO Chris Bryce. More...
Female contractor prospects in finance sector look promising
Prospects for female contractors within the finance sector are substantially greater than they were ten years ago, Financial Director reports. This is according to a recent survey of UK finance chiefs by Robert Half, which concluded that there were increasing opportunities for women to advance within the profession. Overall, 67% of women and 61% of men reported confidence over female prospects. “Creating a diverse talent pool should be at the top of the agenda for businesses, alongside attracting and retaining skilled professionals,” highlights MD of Robert Half UK Phil Sheridan. More...
Increased oil and gas contractor demand could be knock-on effect of M&A activity
Contractors in the oil and gas sector could see demand for their services increase in the not-too-distant future, following indications that oil prices may soon recover, reports Rigzone. This is according to Sanford C. Bernstein & Co, who expect an acceleration in oil and gas acquisitions heading into 2016. “An increase in M&A activity will be a leading indicator for a commodity price recovery,” reads the report, which expects an acceleration within the next 12 months. This will be welcome news to oil and gas contractors, who have seen demand for their services plummet as a result of falling crude oil prices. More...