Contractor demand sustained in core contracting sectors
The ongoing drop in contract numbers is finally slowing, with the core contracting sectors of IT, engineering and construction bucking the trend and remaining firmly in growth territory for a second month. That’s according to the Recruitment and Employment Confederation (REC) and KPMG Report on Jobs for July, which also shows that rising private sector vacancies are helping offset public sector declines. More...
PCG updates contractors on its ‘off-payroll’ and ‘controlling persons’ campaigns
PCG has provided an update for contractors concerned that the new off-payroll and proposed controlling persons regulations will impact on their livelihoods. The contractor and freelancer membership organisation has obtained the final guidance created by the Treasury for government departments on how to implement the off-payroll rules. PCG highlights that the guidance leaves many contractors’ questions unanswered. In response to the controlling persons regulations consultation, PCG is talking to other business organisations seeking consensus against the measures.
Contractors continue to benefit as uncertainty drives clients to hire flexible workers before employees
Ongoing economic uncertainty is directly benefitting contractors, as clients choose to hire flexible workers rather than employees. July data published by the Association of Professional Staffing Agencies (APSCo) confirms falling permanent recruitment is matched by rising contractor hiring in the UK’s professional and associate professional labour market. Commenting on the trend, Ann Swain, APSCo’s chief executive,says:“This switch from permanent to temporary recruitment demonstrates how the UK’s professional recruitment market can respond flexibly to changes in the broader UK economy.” More...
Contractors could save UK SMEs £2.05bn in tax – Unbiased report
By hiring genuine contractors rather than employees, the UK’s small to medium sized enterprises (SMEs) could save themselves £2.05bn a year in tax, reveals unbiased.co.uk’s Small Business Tax Action Report. And by taking other measures, such as incorporating and applying for research and development relief, the total tax saving across the SME sector could be as high as £7.15bn each year. The report highlights a key benefit of ‘contracting out’: it can deliver small firms access to skills and experience they would otherwise be unable to afford on a full-time basis. More...
Manufacturing SMEs still hiring contractors despite falling confidence
Contractors continue to be hired by small to medium sized enterprises (SMEs) in the manufacturing sector despite falling confidence and order books. The Confederation of British Industry’s SME Trends Survey for July shows that small firms increased headcount over the quarter to July by 11%. However, investment intentions for plant and machinery are at their weakest level for three years, which is likely to have a knock-on effect on other contracting sectors. More...
IR35 Forum helps provide certainty for contractors and recruiters: the REC’s viewpoint
Contractors and recruiters deserve tax rule clarity from HMRC, says the Recruitment and Employment Confederation’s (REC) IR35 Forum representative, and head of policy, Gillian Econopouly. “Those who are legitimately in business of their own account are unnecessarily nervous about IR35,” she says. “Giving more clarity to contractors is not only helpful to them, but [also] for recruiters who can place them on assignment with clients, confident they are doing so under the right type of contract.” Econopouly would also like to see changes to HMRC’s business entity tests, which were introduced in May 2012: “The new tests aren’t perfect and we would like to see their calibration revisited in the coming year as they bed down.”
No tidal wave of AWR claims against contractor clients – yet, warns employment lawyer
Contractor clients have not experienced a tidal wave of union-backed claims under the agency Workers Regulations (AWR). In fact, Frances Lewis, head of law firm Osborne Clarke's recruitment sector team told Recruiter that she is personally aware of just six claims, of which “one or two have union involvement”. However, Lewis added that “there must be double that, and maybe a lot more, and a lot more threatened. It's not a tidal wave but things are starting to happen.” More...
IT contracts likely to follow as ICT firms develop in key UK locations
IT contractors look set to benefit from tech-firm investments in London's 'Tech City', Milton Keynes, Sheffield and Ulster. The investments were announced at the Global Business Summit on ICT, one of 18 summits being organised by UK Trade & Investment (UKTI) during the Olympic and Paralympic Games. The investments include business incubators and technology labs likely to fuel demand for IT contractors in sectors such as mobile web, social media, gaming and telecoms. More...
Energy investments to create over 4,000 new contracts and jobs
The results of another London 2012-inspired Global Business Summit look set to create over 4,000 new contracts and jobs in the energy and oil and gas sectors. Energy majors such as GDF Suez, Centrica and BP are among the firms investing in new North Sea field developments offshore, and research, production, transmission and distribution facilities onshore. Up to 200 contract-based research posts are likely to be created for PhD and post-doc work at a new BP International Centre for Advanced Materials centred at the University of Manchester.
Contractor accountants facilitating aggressive tax avoidance may face disciplinary action
Contractor accountants facilitating aggressive tax avoidance schemes on behalf of their clients could face disciplinary action from their professional body. The Institute of Chartered Accountants in England and Wales (ICAEW) has issued updated guidance on aggressive tax avoidance schemes, reminding its members that, “You are under a duty to take into consideration the public interest and at all times to comply with ICAEW’s Code of Ethics.” Accountants breaching the code may face disciplinary action.