Contractor T&S restrictions confirmed within draft Finance Bill
Contractors who are caught by IR35 or considered to be under supervision, direction or control (SDC) will lose travel and subsistence tax relief from April 2016, the draft Finance Bill 2016 confirms. HMRC estimates that the measure is set to impact approximately 430,000 umbrella and PSC contractors over the course of a year. “The travel and subsistence restrictions come as no surprise, but that won’t lessen the blow to hundreds of thousands of contractors,” notes ContractorCalculator CEO Dave Chaplin. Whilst the dividend tax changes announced in the Summer Budget 2015 were confirmed, there is still no mention of IR35 from the Government. More...
Contracting disciplines dominate demand league table: REC/KPMG Report on Jobs
Core contracting sectors were prominent within the latest contractor demand league table from the Recruitment and Employment Confederation’s Report on Jobs for November 2015. Whilst finance, IT and engineering occupy three of the top four spaces, rising contractor demand has been accompanied by the sharpest reduction in candidates in 18 years. “November saw a further tightening of labour market conditions, with few sectors remaining immune from the effects of ongoing skills shortages,” notes KPMG Partner Bernard Brown. The skills shortage has inevitably contributed to a contract-rich environment, with November seeing a three-month high in terms of rate increases. More...
IT contractor prospects profit from skills shortage and expansion plans
Contractor demand in the IT sector looks set to increase as a result of a raft of factors, a survey has shown. Hays UK Salary & Recruiting Trends 2016 report shows that there is serious scope for expansion within the sector, with 76% of firms planning on increasing headcount. However, four in five are concerned that the ongoing skills shortage will present a challenge to recruiters. Meanwhile, 63% of professionals expect to trade in their desk, with the report indicating that many will take the leap into contracting in order to increase their income. More...
Contractor travel and subsistence (T&S) restriction impact highlighted by MPs
Contractors have been the subject of a House of Commons debate, where MPs have criticised Government-imposed restrictions on travel and subsistence relief. Labour MP Sir Alan Meale argued that cuts would pose a significant threat to public services, tabling an Early Day Motion (EDM) which stated: “If the Government persists in such a short-sighted fiscal strategy it will result in undoubted delays and huge failures to essential services provided to citizens.” The Government announced in its Autumn Statement, and subsequently confirmed in the draft Finance Bill 2016, that it was going ahead with its proposal to deny T&S relief to umbrella contractors and personal service company (PSC) contractors caught by IR35. More...
Contractor engagement set to rise as a result of growth of ‘gig economy’
Contractor demand looks set to rise over the next few years, as businesses look to adapt their recruitment strategies. ‘The Future of Work’, a report by PwC, shows that 46% of HR professionals expect contractors to account for at least 20% of their workforce by 2020. This is largely due to a predicted surge in the ‘gig economy’ – where people buy and sell services via online platforms – which is expected to be worth £2bn in the UK within five years. “Contract work is in many cases trumping full-time, permanent roles for people due to the flexibility, autonomy and control it offers,” highlights Jon Andrews of PwC. More...
Finance contractors benefitting from buoyant economy
Contractors in the finance sector are anticipating a rise in both rates and opportunities over the next 12 months, according giant group’s latest analysis of its contractor database. The increased optimism is due to sustained growth in terms of demand, as well as a drop in the average gap between assignments. “Demand has been steadily rising for some time now so it’s not a surprise to see contractors feeling so optimistic about their futures,” explains giant group managing director Matthew Brown. Meanwhile, figures also show that the portion of contractors who would accept a permanent role has continued to drop. More...
Contract-rich market in construction sector stems from skills shortage
Construction contractors in the capital are commanding fees of 10% more than they were in 2014, a poll by infrastructure and support services group Aecom has found. The contract-rich market has emerged as a result of a growing skills shortage in the sector, which has also meant that London’s contractors are having to turn down one in two bidding opportunities for lack of sufficient staff, the Financial Times reports. “Risk appetite among contractors is low, with a desire for certainty meaning that projects may be taken on a smaller margin if the return is guaranteed,” explains Brian Smith, a director at Aecom. More...
Contractor travel and subsistence (T&S) rethink will boost construction sector fluidity
Construction contractors are suffering as a result of Government changes to travel and subsistence and planning restrictions on house building projects, which are stifling output and job creation within the sector. This is a summary of the feedback provided by sector experts after the Government announced a ‘Red Tape’ review, the Recruiter reports. “The Government seems intent on making it more difficult for the average site worker to earn a good living, thus increasing the current skills shortage and threatening house building growth plans,” notes Matthew Page, director at construction recruitment agency Thorn Baker. More...
Finance sector conditions contribute to improved hiring intentions in Scotland
Contractor prospects in Scotland have been boosted as a result of an increased confidence in market conditions. As a result, the Manpower Group quarterly employment outlook survey indicates that hiring prospects at the start of 2016 will be at their highest since Q3 2013. Prospects look particularly promising for contractors in Edinburgh’s finance sector, which has seen a significant surge in demand. Aberdeen is the only anomaly, with the struggling oil and gas sector appearing to have knock-on effects on the region’s hiring prospects in other sectors. More...
IT and finance sectors drive contractor demand in Ireland
Contractor demand is benefitting from a sustained growth trend, according to Morgan McKinley’s Irish Employment Monitor for November 2015. Figures show that professional opportunities are up by 9% year-on-year, and by 7% compared with October. The finance and IT sectors appear to be the driving forces behind the rising demand, with IT professionals finding on average three to four opportunities available to them. However, the short-term growth trend hasn’t been matched by an equivalent number of applicants, with a 10% decrease in candidates recorded month-on-month, suggesting that contractors shouldn’t find opportunities hard to come by. More...