Budget 2012: PSC anti-avoidance measures unlikely to apply to most contractors
A broadly contractor-positive Budget 2012 masked an IR35 and anti-avoidance time-bomb for some contractors, buried deep in the Budget document. New anti-avoidance measures will be introduced in the Finance Bill 2013 to tackle users of personal service companies who are “office holders/controlling persons who are integral to the running of an organisation”. However, the wording in the Budget 2012 document suggests that any new anti-avoidance measures targeting the users of personal services companies are likely to be restricted to those contractors who are office holders and controlling persons. That will exclude the vast majority of genuine contractors. More…
Contractor-positive Budget 2012 measures – direct and indirect
Contractors will benefit from a range of direct and indirect Budget 2012 measures announced by the Chancellor George Osborne. Both lower and higher earning contractors are likely to gain from major adjustments to tax allowances coming into force in April 2013, but those on middle incomes may fare less well as the higher rate threshold is decreasing. Indirectly, contractors in a range of sectors, including media and creative, engineering and oil and gas, will benefit from government support. Were it not for the ominous IR35 news, this would have been a moderately contractor-positive Budget. More…
No recession in Scotland, but slow recovery suggests strong February demand for contractors
Strong demand for contractors, and a correspondingly bullish permanent employment sector, suggests that Scotland is heading for a slow recovery rather than lapsing back into recession. The Bank of Scotland Report on Jobs for February shows increased contractor demand and billings in the core contractor disciplines of IT and engineering, with financial and interim management contractors also performing well. The contractor market was strongest in Edinburgh, centre of the Scottish financial sector, with rates growing fastest in gaming centre Dundee.
Window into the world of contracting opened by PCG member survey
PCG’s latest membership survey has opened a fascinating window into the world of contracting, particularly as its membership appears to be diversifying away from largely IT contractors. Only 45% of those surveyed by ComRes in 2011 were IT contractors, compared to 55% in 2010. And the flexible workforce’s identity crisis continues, as those working in IT and engineering describing themselves as ‘contractors’ and those in management and project management describing themselves as ‘consultants’.
AWR: recruiter body calls for “clarity” over employment rights
Recruiter body the Association of Recruitment Consultancies (ARC) is calling for clarity over the employment rights agency workers receive under the Agency Workers Regulations (AWR). Workers’ claims can put clients off hiring contractors because they fear that actions may arise as a result of hiring via an agency. ARC Chairman Adrian Marlowe explains: “Agency workers are able to bring claims against hirers for employment rights even though current legal authorities indicate that these rights do not generally exist. He adds: “The threat of this kind of action is of concern to both hirers and agencies alike, and claims lead to unnecessary cost and damage commercial relationships.” More…
Manufacturing contractors will benefit from “above average order books”
Contractors with clients in the manufacturing sector look set to benefit from above average order books and strong output growth, according to the latest CBI Monthly Industrial Trends survey of 436 UK manufacturing firms. “The recovery in the manufacturing sector seems to be building some momentum,” explains Ian McCafferty, CBI Chief Economic Adviser. “Firms again expect a strong rise in output over the next three months, on the back of above-average order books.”
Demand for engineering contractors driven by infrastructure investment
Demand for engineering contractors continues to grow strongly, buoyed by a surge in infrastructure investment, according to research by the Association of Professional Staffing Companies (APSCo). The research from the APSCo Monthly Trends Report shows that demand for engineering contractors had increased 7% on a year-on-year basis in January 2012. This follows a corresponding 23% increase in UK infrastructure spending during 2011, to help reach the highest level of infrastructure investment since 1980. More…
HMRC to alert contractors earlier about P35 fines for late delivery
Contractors failing to deliver their P35 on time will be alerted earlier under a new joint initiative launched by HMRC, the professional tax and accountancy bodies and tax charities. Failure to deliver the P35 by 19 May results in an automatic £100 fine, and under the previous regime, contractors who left it a further four months only received their first reminder from HMRC in September, alongside a £400 fine. The new initiative means contractors will know within a month whether HMRC was expecting a P35 and if it has not been received.