Public sector IR35 reforms called into question by recruitment body
Proposed changes to IR35 rules impacting contractors in the public sector have been branded “unworkable, disproportionate and unreasonable” by a recruitment body. In a recent consultation, HMRC announced the intention to rest the responsibility for determining the IR35 status of a public sector contractor with their agency. However, operations director at the Association of Professional Staffing Companies (APSCo) Sam Hurley claims the demands on agencies are unjust: “Recruitment firms do not have sight of the day to day operations of the worker – they would not typically be present at a client’s site and would consequently have no visibility of the role undertaken.” More...
Irish IT contract market proves buoyant whilst overall demand remains stable
Contractors in Ireland’s IT sector are enjoying strong demand for their services, with big data and security roles particularly prevalent. The growth of Fintech is also continuing to generate opportunities for contractors with finance and technology backgrounds. Despite this, Morgan McKinley’s Irish Employment Monitor for May 2016 shows that overall vacancies across all sectors have fallen by 1% month-on-month and by 9% compared with May 2015. “Global uncertainty and concerns over the possible impact of a Brexit are impacting the pace of recruitment,” comments Morgan McKinley Ireland operations director Ronan Hill, who also expects a market rebound in the event of a “remain” vote. More...
Decommissioning surge to buoy oil and gas contractor demand
Oil and gas contractors are set to benefit from an acceleration in decommissioning activity over the coming three decades, Rigzone reports. According to Mark McAllister, chairman of The Decommissioning Company, $87bn will be spent on decommissioning in the UK Continental Shelf (UKCS) between now and 2046. “The overall cost of decommissioning has increased sixfold in the last decade,” he explains. “The [UKCS oil and gas] industry has had relatively limited experience of decommissioning,” adds CL Consultancy oil and gas consultant Christopher Lloyd, suggesting that contractors with existing experience may find themselves in particularly high demand. More...
Contractors on hand as oil and gas firms plan headcount cuts
Oil and gas contractors are on hand to plug skills gaps as many North Sea firms anticipate further headcount cuts before the end of the year. BBC News cites a survey by the Bank of Scotland/Lloyds Banking Group that reveals a third of the UK’s oil and gas firms plan to reduce their permanent workforce in response to cost-cutting pressures, with 51% having already done so. Meanwhile, decommissioning and renewable energy could prove prosperous sources of contracts, with many larger firms entering the former market and smaller firms the latter. More...
Contractor vacancies continue despite slowing cross-sector growth
Contract opportunities continue to arise despite Brexit concerns stifling business volumes and overall growth. The latest Purchasing Managers’ Indexes (PMIs) from Markit and the Chartered Institute of Purchasing and Supply (CIPS) notes that headcounts have risen in the construction and service sectors, despite only moderate growth recorded in either industry. Meanwhile, manufacturing contractors remain ready to fill the void left by a shrinking permanent workforce. This month’s PMIs highlight:
- Contractors are on hand to plug skills gaps once the manufacturing sector regains momentum after permanent headcounts were slashed for the fifth consecutive month in May. The UK Manufacturing PMI puts this down to a weak rise in new business due to uncertainty generated by the EU referendum, suggesting that an upturn may occur after 23 June.
- Construction staffing levels accelerated to the highest rate of growth seen since January in May, marking three consecutive years of growth. The UK Construction PMI notes that this is in spite of weak output growth and a decline in incoming new work. The rise in headcount reflects the general optimism within the sector, with 51% of construction companies expecting a rise in output over the next 12 months.
- The service sector continues to generate contract opportunities, despite a weak rate of expansion overall. The UK Services PMI highlights improved expectations for the coming 12 months amongst respondents, but also concedes that fears over the EU referendum have adversely affected one-in-three companies.
Treasury responds to ‘Making Tax Digital’ concerns
Financial secretary to the Treasury David Gauke has once again moved to defend plans to issue contractors and other taxpayers with digital tax accounts. Treasury Select Committee chair Andrew Tyrie had previously written to Gauke expressing concern over the requirement for contractors to adopt accountancy software that can be used directly by HMRC’s systems. In his response, Gauke wrote: ‘HMRC will ensure that compatible software products are available to suit the budgets and needs of all businesses, including some free products for those small businesses with the simplest affairs.’ More...
HMRC claims corporation tax advantage after targeting big business
HMRC believes it has turned a corner in its clampdown on corporation tax avoidance after shifting its focus away from limited company contractors and small businesses. Data released following a Freedom of Information Act request by UHY Hacker Young reveals a 15% decrease in the number of high value cross border investigations for the year to March 2015, reports City AM. “We focus our resources on those businesses we think least likely to be playing by the rules, spending much less time with the majority who are open and transparent,” a HMRC spokesperson said. More...
HMRC draws criticism for targeting contractor tax planning
Tax planning by contractors and other taxpayers will be subject to increased scrutiny from HMRC. According to its ‘single departmental plan’ for 2015-2020, HMRC expects to raise an additional £5bn a year by taking a harder stance on ‘tax avoidance and tax planning, evasion and compliance’. This has drawn criticism from numerous corners, with the Telegraph’s deputy personal finance editor Richard Evans describing it as proof that HMRC sees itself as above the law. “If the plain words of HMRC are to be taken at face value, it looks as though we can expect a seismic shift in the way taxes are dealt with in the UK,” adds George Bull of RSM. More...