HMRC’s IR35 review to be published imminently, shows latest IR35 Forum minutes
Contractors should finally get to see HMRC’s long-awaited, and long overdue, IR35 Review, as according to the latest minutes of the IR35 Forum it is due to be published imminently. The minutes also show that the debate over the value of the Business Entity Tests (BETs) and whether they should be abolished has intensified. The forum is discussing what actions would be required should the BETs be withdrawn. More...
Financial and IT contractor prospects improve as City hiring increases
The fortunes of financial and IT contractors took a turn for the better during September 2014. The latest Morgan McKinley London Employment Monitor shows hiring in London’s financial sector increased by 19% when compared to the previous month. “September has been a busy month for City recruitment,” notes Morgan McKinley Financial Services operations director Hakan Enver. “There is continued confidence within the financial services sector, with our annual data showing that City job availability is up a healthy 7% compared with this time last year.” More...
Contracting outperforms the rest of the UK labour market, with rates reaching a seven-year high
Contracting is outperforming the rest of the UK labour market, with demand and agency billings both outpacing the permanent recruitment sector. September 2014’s Recruitment and Employment Confederation (REC)/KPMG Report on Jobs also show that pay rates have increased to a seven-year high, driven in part by ongoing falls in contractor availability. The report blames the slow-down in permanent recruitment and corresponding increases in contractor hiring on the lack of available permanent candidates. Clients are hiring contractors to access the talent and skills they need. More...
Contractor hiring remains strong across the UK services sector during September
Contractor hiring continued to “rise markedly” across the UK services sector, with high client confidence and marketing pushes generating demand. The Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Services Purchasing Managers Index (PMI) for September 2014 shows that that “companies were suitably encouraged to add to their payroll numbers” during the month as a result of “sharply rising new business volumes”. More...
Contractors asked to support IPSE petition to government
Contractors have been asked to add their names to a new petition launched by the association of Independent Professionals and the Self Employed (IPSE) in the run up to National Freelancers Day. “This petition outlines a series of bold yet realistic ways that politicians can help independent professionals to get on,” explains IPSE chief executive Chris Bryce. “We're asking anybody who works for themselves to throw their support behind this petition and show Westminster just how many people would benefit from the changes we are calling for.” More...
Umbrella company contractors face crackdown by Labour: Parasol takes action
Umbrella company contractors are facing a crackdown on their way of working if the Labour Party wins the next election. The party has promised to tackle the use of umbrellas to avoid tax and National Insurance (NI) during its recent conference. However, employment services provider Parasol has taken direct action by lobbying Labour and inviting shadow business secretary Chuka Umunna to visit its Cheshire head office. “We believe it’s vital that politicians of all persuasions engage with our sector and develop their understanding of how compliant providers like Parasol work,” said Parasol managing director Derek Kelly. More...
Reshoring could create 378,000 new contracts and jobs, shows new research
Over 378,000 new contracts and jobs could be created over the next three years by mid-sized UK firms choosing to reshore operations from the eurozone and Asia. According to a report by the Recruiter, new research by GE Capital and Warwick Business School shows that “access to skilled labour was in the top five reasons firms cited for wanting to bring activity back to the UK”, with London as the top destination for reshoring. Firms are also seeking to benefit from the productivity offered by the UK’s flexible workforce. More...
Shortlist of contractors and independent professionals chosen for IPSE competition
IT, marketing and media contractors are among the fifteen independent professionals shortlisted in IPSE’s 15 for 2015 competition to find Britain’s best freelancer. IPSE says that the fifteen finalists, coming from a range of industries and locations across the UK, perfectly showcase the diversity of Britain’s growing army of self-employed professionals. “I am delighted that we are able to offer fifteen people with so much potential the support they need to give their business the best chance of success in 2015,” notes IPSE chief executive Chris Bryce. “Enterprising individuals like our fifteen for 2015 truly are the future of Britain’s economy.” More...
Contractors incorporate limited companies to reduce risk, shows HMRC report
Contractors incorporate principally to avoid risk, shows a new report by HMRC, HMRC Research Report 317 – Reasons behind incorporation. The next most common reasons are to benefit from tax savings, for contractual reasons and to enhance credibility. The report also shows that for those respondents who highlighted tax and NI savings as a reason for incorporation, the “initial incorporation idea was often motivated by different business reasons and the potential tax/NI benefits were not apparent until after incorporation”. More...
Contractors subject to psychological ‘nudges’ by HMRC to pay tax on time
Contractors are being subject to psychological nudges incorporated into letters and other communications by HMRC to encourage them to pay their tax on time. The Telegraph’s Kate Palmer writes that using these psychological tricks has raised an additional £210m from taxpayers. Some letters from HMRC are clearly designed to frighten contractors into paying tax, and “scaring them off” using tax avoidance schemes. More...