Contractor candidate shortfall contributes to continued rising rates
Contractor agency billings increased during December 2015 but this wasn’t sufficient to close the gap between supply and demand, as contractor skills shortages remained pronounced. This is according to the Recruitment and Employment Confederation’s (REC) Report on Jobs for December 2015, which shows that agency billings and contractor demand both increased at a moderated pace. Meanwhile, contractor availability continued its marked decline, resulting in sustained growth of contract rates. The finance sector retained its number two spot in the contractor demand league table, whilst IT and engineering slipped to fifth and eighth respectively. More...
Oil and gas contractors encouraged to target junior oil firms for contracts
Contractors in the UK oil and gas sector who are struggling to stay in contract on the UK Continental Shelf (UKCS) should look towards independent and junior oil firms as a potential source of contracts. Major firms continue to slash headcounts in response to dwindling oil prices, with BP announcing a further 600 North Sea job cuts, yet a number of smaller firms continue to build exploration wells and progress with development projects. “Whilst contractor prospects of securing contract roles with major firms appear increasingly bleak, it’s refreshing to see that juniors are recognising the potential of the North Sea and taking advantage of the situation,” highlights ContractorCalculator CEO Dave Chaplin. More...
Construction contractors targeted by HMRC investigations
Construction contractors are increasingly finding themselves the subjects of HMRC tax investigations, after accountancy group UHY Hacker Young revealed that the Treasury’s tax yield from the sector has more than doubled over the past five years. Economic Voice reports the findings that show HMRC gathered £154m from tax investigations into the construction sector in 2015, a 17% increase on the £131m reported in 2014. “The construction industry is seen as an easy target by HMRC and has been subjected to increasingly intense investigations in the last few years,” notes Roy Maugham, tax partner at UHY Hacker Young. More...
IT contractor demand set to grow three-fold by 2020
IT contractor demand in the UK is set to surge over the coming years, after a recent study revealed the extent of the skills shortages within the sector. The Telegraph reports that an increasing shortfall in candidates is restricting businesses from moving into the digital era. The European Commission estimates that the UK suffered from a shortfall in IT professionals to the tune of 55,000 in 2015, with that figure set to rise to 171,000 by 2020. All of this will contribute to an increasingly contract-rich environment for IT contractors, with those with cybersecurity skills earmarked as likely to be particularly sought after. More...
Flood-affected contractors to receive tax return deadline extension
Contractors who have been victims of the December floods and who fail to submit their self-assessment tax returns by the 31 January deadline will not suffer penalties, HMRC has confirmed. TaxAssist Accountants reports that special extensions are being granted to contractors, and other self-employed individuals, who have a reasonable excuse for filing late. HMRC acknowledges that many contractors potentially face a number of difficulties, including loss of documentation or computer files, whilst some contractor’s future earnings may also be impacted as a result of flood damage to their businesses. More...
Contractor T&S restrictions opposed by consortium
Legislative changes to contractor access to travel and subsistence (T&S) relief will face further opposition in the form of a consortium composed of staffing agencies and umbrella companies, headed by founder of law firm Aspire Partnership Alan Nolan, the Recruiter reports. The Government introduced draft legislation during the Autumn Statement 2015 restricting contractors operating via employment intermediaries from claiming tax relief on T&S expenses. Protests from numerous relevant bodies went unheeded, but the new consortium aims to potentially apply for a judicial review of the legislation in an attempt to overturn the decision. More...
HMRC self-assessment tax return software called into question
Contractors could be at risk of overpaying on tax returns, as a result of errors in HMRC’s self-assessment software, FT Advisor reports. Accountants RSM identified recent errors that led to a number of contractors having to reclaim overpaid tax, with further errors in an online tax form provided by the Ministry of Justice suggesting it wasn’t an isolated issue. “If the standard set by HMRC is incorrect, all tax returns software will be wrong in that respect,” notes RSM senior tax partner George Bull. “This is a matter which requires attention now as citizens are increasingly required to complete online forms.” More...
Contractors better off writing to HMRC than calling, accountancy firm claims
Contractors looking to address queries to HMRC are advised to write a letter, as opposed to making a phone call, accountants have claimed. The Telegraph reports that an annual survey released by the Institute of Chartered Accountants in England and Wales (ICAEW) found that HMRC’s service standards remained “below an acceptable level” in 2015, with HMRC’s postal service deemed to be more reliable for resolving complex queries. “The post service is marginally better but neither method is the most appropriate or cost effective way of communicating with HMRC in the digital age,” ICAEW highlights. More...
Contractor spend within Government sees significant growth
The Government’s dated view of the use of contractors has been highlighted by a recent National Audit Office report that attributes rising Government spend on contractors to underlying staffing issues, as opposed to the changing nature of work. Annual spend on contractors in Government departments has risen by between £400m and £600m since 2011-12, due to what the report describes as “under-developed” strategic workforce planning. “Given that the current government has stressed the importance of small businesses to UK economic growth, we would expect the government to act as more of a champion for SMEs,” notes Recruitment & Employment Confederation (REC) head of policy Kate Shoesmith. More...
Contractors to benefit from increased spend in UK IT sector
IT contractors in the UK can look forward to a prosperous year after recent research found that anticipated growth in terms of investment in the UK IT sector in 2016 is amongst the highest in the world. Computer Weekly reports that UK firms are set to increase IT spending by 8%, bringing the economy investment as a whole up to roughly $179bn. Contractor demand within the sector is currently undergoing a sustained growth trend with continued investment, accompanied by ongoing skills shortages, likely to result in an increasingly contract-rich market. More...