IT contractor Elaine Richardson of ECR Consulting wins IR35 case in which HMRC was claiming £50k+
IT contractor Elaine Richardson, who contracts through her own limited company, ECR Consulting, has won her IR35 case after battling with HMRC for over five years over its claim for more than £50,000. According to PCG, whose investigation insurance covered the costs of Richardson’s defence by Accountax Consulting, the tax tribunal cleared the contractor of being inside IR35 after focusing on Richardson’s ‘in-business’ status. A PCG statement notes that factors leading to the ‘in-business’ conclusion included: “ECR operates from a dedicated business area at her home. It has a company domain and website. ECR advertises its services and is a member of the PCG. It has retained reserves and invested in development and has over the years taken on fixed price work for a variety of clients.” More…
IR35 is for the first time being used to target actors working through their own limited companies
High-profile actors using personal service limited companies have been sent bills by HMRC for thousands of pounds of unpaid National Insurance Contributions (NICs) under the IR35 legislation. Alistair Smith writes in The Stage that the claims are only against actors using limited companies, and that this is the first time IR35 has been used to target actors. A spokesperson for HMRC said: “HMRC is not cracking down on actors or any other profession. We target our compliance resources at areas of high risk in accordance with our compliance strategy.” More…
New contract opportunities could come from manufacturing and export sectors
Contractors may wish to consider targeting manufacturers and exporters for new contract opportunities, as these currently appear to be the sectors with the most optimistic hiring intentions. According to the latest Chartered Institute of Personnel and Development/KPMG Quarterly Labour Market Outlook Spring 2011, these sectors will continue to see growth through increasing overseas demand. More…
Contractor skills shortages in manufacturing due to record-breaking growth
Contractor skills shortages are starting to appear in the manufacturing sector, which is experiencing record breaking growth in recruitment. The EEF’s analysis of data from the Office of National Statistics shows manufacturing jobs have increased by 60% in the last 12 months. However, in its blog the EEF reports that anecdotal evidence suggests that “other problems – such as skills shortages – are emerging.” More…
Scottish ROJ shows ‘strongest rise’ in demand for IT and computing contractors
April’s Bank of Scotland Report on Jobs shows IT and computing contractors experienced the ‘strongest rise’ in demand across all eight sectors monitored by the report. Actual contracts awarded to contractors also increased in April, as did the availability of contractors. Aberdeen experienced a surge in contractor pay, which could be due to an uplift in oil and gas sector activity. More…
Contractors working in retail could suffer a tough decade through depressed consumer confidence
Contractors in the retail sector could face a tough decade as weak consumer confidence depresses the fortunes of UK retailers. In a special report, economic think-tank the Ernst & Young ITEM Club forecasts consumer spending growth will reach only 0.6% in 2011, and 1.3% in 2012. Ernst & Young’s head of consumer products Steve Wilkinson predicts any recovery in consumer spending, and as a result retail contract assignments, will be slow: “It’s clear that the outlook for the consumer remains bleak; we’re facing another 18 months of pain before wages can once again keep pace with inflation.” Despite this gloomy forecast, April retail sales figures were higher than expected, thought to have been given a boost by the Royal Wedding. More…
Contractors urged to let government know their views on proposed £186 a head tax charge for helicopter flights to rigs
Contractors taking a helicopter flight to work on an offshore assignment could be hit with an additional £186 tax charge if the latest Treasury proposals on air passenger duty under consultation become law. Contractors have until 17 June 2011 to respond to the consultation, which is proposing to categorise helicopter flights to offshore installations in the same bracket as private jets, incurring an additional £186 per passenger per flight. Industry body Oil & Gas UK’s health and safety director said it will cost the UK oil and gas an additional sector £165m a year. More…
Work Wise Week celebration ends in ‘National Work From Home Day
The contractors cause could be boosted by unions and business bodies coming together to celebrate Work Wise Week, which is designed to promote ‘smarter’ working practices, such as flexible, remote and mobile working. According to Work Wise UK, enabling staff to work more flexibly can save costs and improve productivity. By offering clients the option of working from home or on the move, contractors in some sectors could increase their chances of winning fresh assignments. Work Wise Week ran from Monday 16th May 2011, leading to National Work from Home Day on Friday 20th. More…