Brexit referendum: UK votes to leave the EU
Contractors face an uncertain future following the result of the referendum on the UK’s future in the European Union (EU). With only a few results left to declare, the leave vote is 16,835,512 against 15,692,093 voting to remain. According to ContractorCalculator CEO Dave Chaplin, this result is a double edged sword for contractors: “Contractors become very popular during times of uncertainty, but that uncertainty could result in cancelled projects.”
Contractors losing money when calling HMRC
Contractors are among those taxpayers paying an incredible £97 million last year to talk to HMRC. A new online strategy alongside poorly timed staff cuts lead to what the National Audit Office (NAO) has termed a “collapse in service quality” and a spike in costs. The figure of £97 million was calculated using HMRC’s own criteria, that costs the average value of people’s time to be £17 per hour, and includes time wasted waiting, the call costs themselves and the potential loss of revenue for business owners kept on hold. More...
North Sea cost cooperation could lead to more contracts
Contractors could be among those to benefit from a new initiative in the North Sea. Last month companies operating in the North Sea started pooling spare parts and tools, and they are even sharing plans on how to drill wells so they can work faster and cheaper. As companies focus on adapting to prices closer to $50 per barrel by making their spending less wasteful, they also aim to boost profitability for years to come. More...
Surge in Swiss hiring
Contractors looking for their next contract might consider Switzerland. The Michael Page Swiss Job Index recorded an increase in job offers of 8.1% between May and June 2016. All regions reported an increase in vacancies, with the highest in Eastern Switzerland (+ 14.2%) and Central Switzerland (+ 9.8%). Charles Franier, Executive Director at Michael Page, said. "First, the growth and transformation of the industry requires to recruit specialists; second, after a freeze in demand last year, companies begin to recruit again. …. specialists are highly sought, regardless of the sector. The demand in the areas of health, life and heavy industry science is particularly strong.” More...
Construction and financial services driving growth in Scotland’s economy
Contractors in construction and financial services may have reason to be optimistic about work prospects in Scotland. This is according to a new report on Scotland’s economy which suggests it is shaking off the oil and gas downturn and returning to modest growth. The report is based on survey findings by Strathclyde University’s Fraser of Allander Institute. Fraser of Allander director Professor Graeme Roy said the report, contained “grounds for cautious optimism.” More...
Creative businesses divided over Brexit
Contractors in the creative industries face a mixed outlook from hirers on the result of the referendum. Small businesses in the media and entertainment industry were among those most likely to have voted for remain (69%), compared with 48% for the SME sector in general. Ian Cass, managing director of the Forum of Private Business, which supports small and medium-sized firms, said red tape was one of the most pressing issues for small businesses. “The potential economic downturn and how big a risk that is, is also an issue. However, businesses are very good at dealing with risk.” More...
Are contractors working away from home finding London a cheaper place to stay?
Contractors working internationally are finding London has slipped down the cost table. Currency fluctuations and the collapse in the price of oil have reshuffled the deck for international cities, where imported goods and scarce upmarket housing tend to increase the cost of expatriates, according to research by employment specialists Mercer. “While most Western European cities have remained stable in this year’s rankings, UK cities have fallen,” said Kate Fitzpatrick of Mercer. “However, the drop is not as large as to be expected, with steep rental prices keeping UK cities up.” More...
Survey on changes to IR35 in the public sector
Contractors affected by the government’s proposals to change IR35 rules in the public sector are urged to take part in a new survey to reveal the effect on their business. The survey is arranged by IPSE, the body supporting the contacting and freelancing sector. It reflects the government’s intention to make public sector organisations or hiring agencies determine the IR35 status of every engagement, with tax and National Insurance being deducted as it would for employees where IR35 applies. IPSE seeks the views of anyone who has worked on public sector contracts in the last two years and they survey will be open until Midnight GMT, Sunday 3 July More...
Germany tops destinations for contractors seeking short-term contracts abroad
Contractors may be increasingly likely to consider working abroad. While most Britons wouldprefer to stay in the UK for their next job, according to the jobs website Indeed,"this situation may not last forever". Almost one in 10 UK jobseekers searching on Indeed are looking for a job outside the country – more than those from the US, China or France. Jobbatical, the website for finding short-term employment abroad, found that Germany was the most popular country for British workers looking for a stint overseas, attracting 10% of applications from the UK. More...
Net closes in on contractors with hidden offshore accounts
Contractors who may be avoiding tax by maintaining offshore bank accounts may be in for an unpleasant shock. HMRC has extended the list of countries that automatically exchange information on beneficial ownership – meaning that hidden bank accounts may not stay hidden for much longer. More...
HMRC doubles down on evasion
Contractors may need to look to their tax affairs and be certain they don’t cross the thin line between avoidance and evasion, according to law firm Pinsent Masons. They warn HMRC iskeen to be seen stepping up its enforcement activity after persistentcriticism. “Sheltering wealth from the taxman remains an extremely highly-charged issue,” said Fiona Fernie, head of Pinsent Masons’ tax investigations. She adds that the revenue’s increased powers and computing capabilities will be able zoom in on many more taxpayers than in the past. “If you discover you’ve got something wrong, it’s better to just come forward.” More...