Contractors not alone in using dividend pay strategies, shows HMRC survey
Contractors are far from being unusual by adopting a high dividend, low salary remuneration strategy. Many unlisted UK companies reportedly pay dividends as a more tax-efficient means of distributing profits, prompting questions as to why contractors are demonised for opting for low salary/high dividend pay schemes. This is according to Profit Distribution and Investment Patterns of Unlisted Companies, a study carried out on behalf of HMRC which found that 58% of companies reported using dividends as part of their directors’ remuneration strategy. “Contractors who choose to pay themselves through dividends out of their hard-earned profits have long come under scrutiny, but as the survey shows, this sort of arrangement spans far beyond the contractor workforce,” highlights ContractorCalculator CEO Dave Chaplin. More...
ContractorCalculator’s second response to HMRC’s IR35 discussion document
ContractorCalculator has issued its second of three articles in response to HMRC’s Intermediaries Legislation (IR35) discussion document, in which it describes HMRC’s policy objectives as unrealistic. IR35 has to date failed to generate anything like the £430m in additional taxes HMRC believes the tax would raise if properly implemented. In its response, ContractorCalculator calls for a major research and analysis exercise to be undertaken, in order to provide the taxman with a real grasp of the contracting market so that it can forecast realistic tax yields. More...
Finance contractor outlook bright despite dip in demand
Contractor prospects in London’s financial sector remain positive, despite a dip in demand since August 2015, shows Morgan McKinley’s London Employment Monitor for September 2015. “We only started seeing a pickup in activity during the second half of last month,” explains Hakan Enver, operations director, Morgan McKinley Financial Services. The slow start the month resulted in a monthly decrease in available jobs of 14%, although the long-term growth trend continued, with year-on-year figures revealing a 12% increase within the sector. The improved prospects were reflected in the jobs market, where year-on-year job seekers increased by 52%. More...
IT contractor demand set for sustained growth as UK aspires towards digital economy
Contractors in the IT sector can expect continued demand for their services as the UK looks to fulfil its digital potential, reports Computer Weekly. This is according to research carried out by O2, which claims that the UK will need the skills of 2.3m digital workers by 2020 in order to power the anticipated digital economy. As a result, 766,000 jobs are expected to be created within the sector over the next five years, 47% of which will be based in London or the south-east of England. More...
Contractors to benefit from sustained skills shortage in Scotland
Construction contractor demand in Scotland looks set to be sustained for the long-term as chronic skills shortages in the sector have been traced back to a lack of investment in graduates throughout the lean years. This is according to a report by The Scotsman, with recruitment experts warning that it could happen again. “The construction sector is booming right now, but organisations are struggling to recruit skilled workers as demand goes through the roof,” explains Chris Peace, Managing Director of Peace Recruitment. With the upturn in housebuilding projects, contractors short of work and willing to relocate can expect to find opportunities in Scotland. More...
Contractors in the oil and gas sector settling for lower rates
Oil and gas contractors largely look to remain loyal to the sector, with many lowering their income expectations, whilst the need for trustworthy client project leadership within the industry has also been emphasised. This is according to a recent Rigzone survey, which found that 78% of respondents consider honesty and trustworthiness to be an extremely important quality in a leader. Meanwhile, whilst 59% considered a competitive income to be a critical consideration when considering a new role, Rigzone’s Q3 2015 global hiring survey reveals that 70% of candidates would settle for lower rates when compared with the second quarter of 2015. More...
Potential North Sea decommissioning work for oil and gas contractors
Contractors in the oil and gas sector could benefit from decommissioning opportunities relatively soon, as continued low oil prices look to force the hand of many North Sea firms. Rigzone highlights that factors which caused oil prices to plummet show no signs of abating, with the expected longevity of low prices set to press operators into making a decision regarding decommissioning or investing in life extension. £46bn is forecast to be spent on decommissioning in the North Sea between now and 2040, which could present a prosperous source of income for North Sea-based contractors who have been negatively impacted by the sector’s downturn. More...
Australian contractors gain greater protection under ‘unfair contracts protections’ Bill
Contractors in Australia can now enjoy protections on annual earnings of up to $300,000, reports Independent Contractors Australia (ICA). This comes after it was announced that the Government would accept the amendments made by the Senate to the ‘unfair contracts protections’ Bill for small business people. Previously, the annual earnings limit was set at $100,000, which ICA opposed on the grounds that it excluded many contractors working in sectors such as IT and finance. “This is a win not only for small business people but for large businesses as well,” ICA highlights in a statement. More...
Contractor numbers remain stable, according to ONS data
The self-employed contractor headcount remained stable at 4.50million in the three months leading up to August, according to the latest labour market data from the Office for National Statistics (ONS). This continues the steady recovery following the 17-month low witnessed through March to May 2015. However figures have fallen year-on-year, with records showing the number of self-employed workers to be down by 26,000 when compared with the same three-month period in 2014. “We expect the trend is not long term and there has been a modest improvement in the number of self-employed compared to the last,” highlights Chris Bryce, chief executive of the Association for Independent Professionals and the Self-Employed (IPSE). More...
Contractor opportunities increase in France
Contractor opportunities across the Channel are steadily improving, as contingent worker headcount in France has continued its pattern of growth over the last year, reports Staffing Industry Analysts. Figures from French company Pôle Emploi revealed that the number of contractors across France in August 2015 increased by 4.6% to 619,800 year-on-year, stretching the run of growth into its ninth successive month. The industrial sector reported significant growth of 5.3%, whilst it also accounted for 8.5% of the entire contractor workforce during August. There were contrasting fortunes in the construction sector however, as it recorded a decrease in contractor numbers of 2.9%. More...