Media contractors failed by “pointless” BBC employment test
Contractors were finally given access to the employment test for on-air talent devised by the BBC and HRMC, following a lengthy battle by ContractorCalculator to force the test to be made public. This website’s CEO, Dave Chaplin, is scathing: “The test isn’t based on case law and bears little resemblance to the whole picture required in a proper evaluation of whether or not someone is an employee.” He is concerned it is “simply another example of public sector bodies being forced through political pressure to come up with solutions to off payroll and personal service company problems that don’t exist”. More...
Contractors are the answer to government IT overspends, PCG tells government
As IT contractors have watched with dismay HMRC heading towards spending £10.4bn on the £3.6bn Aspire project, PCG is calling for the government to finally apply the lessons of its massive IT overspends. “Large IT projects … should be broken up and awarded to smaller businesses and collaborative groups of self-employed specialists,” says Andy Chamberlain, a PCG public affairs expert. He points out that the very contractors most suited to working on these projects have been prevented from bidding. “The government has consistently let the taxpayer down,” says Chamberlain, insisting that self-employed specialist contractors would be “more efficient and more accountable”. More...
Public sector contractors again in the firing line over PSCs, prompting IR35 reviews
Public sector contractors running personal service companies (PSCs) are in the spotlight again, with contractor accountant Clearsky reporting a resulting “sudden increase in demand for IR35 reviews”. Health services regulator Monitor noted recently that 86 senior NHS officials may have failed to provide assurances that they were paying the correct amount of tax under off-payroll rules. ContractorCalculator CEO Dave Chaplin says he is worried about a potential ‘mini contractor witch-hunt’: “Ever since the Ed Lester affair in 2012, we have regular media storms on this subject, with politicians jumping on the bandwagon and much needed, highly skilled contractors leaving public sector work.” More...
IT contractors and interims to support cash-strapped Government Digital Service
IT contractors’ value to government technology is recognised in the newly published Government Digital Service business plan for the year to March 2015, which specifically talks about the need to help departments hire interim staff to fill skills gaps. 210 interim posts are funded but, GDS says that it will replace interims with civil servants as it expands. However, it also says that “New hiring will normally be through fixed-term appointments”, which leaves the way open to more hiring of contract staff. In addition, GDS has identified that its current procurement doesn’t allow “small, fast or flexible contracts”, and says it will address that. To do so successfully will almost certainly require greater use of IT contractors. More...
Interim manager demand up 15%, led by private sector and financial services
Interim management contractors have seen demand for their services grow 15%, while enquiries are up 18%. According to Ipsos MORI data from the Interim Management Association (IMA) for the first quarter of 2014, most contracts are coming from financial services and private sector work. But the public sector is still offering good opportunities, possibly driven by central government wanting to complete projects before the general election. “For the first time in a few years we are observing that competition is stiff to secure the best candidates, and clients are having to move quickly,” says James Hunt of Green Park, an IMA member firm.” More...
Contractors in Scotland see solid rate rises and growth in contract numbers
Scotland’s contractors are in a sellers’ market, with demand for their services high and the availability of highly skilled workers shrinking, according to June’s Bank of Scotland Report on Jobs. Salary inflation has reached a historic high for the eleven-year survey, with contractor pay rising “solidly”. Discussing the mismatch between worker supply and demand, Bank of Scotland’s Donald MacRae noted, “The number of candidates available for both permanent and temporary jobs fell, accompanied by a record rise in starting salaries. The recovery in the Scottish economy looks set to continue.” More...
Contractors urged to look beyond London for tech and IT contracts
Contractors interested in working for tech startups or the businesses supporting them are being urged to look beyond London, to cities such as Birmingham, Bolton, Bristol, Cambridge, Manchester and Newcastle. The call comes from Gerard Grech of Tech City UK. This was set up by the current government to support London’s ’Silicon Roundabout’, and is now looking to the wider UK to connect clusters of tech activity. Interviewed by Computer Weekly’s Caroline Baldwin, Grech spoke of the importance of overcoming UK skills shortages by combining complementary skills across the country. “Contractors are likely to be the glue that can make that happen,” comments ContractorCalculator CEO Dave Chaplin. More...
Contractors now guilty until proven innocent – and HMRC is doing the judging
Contractors should be wary of the fact that the centuries-old recognition that you are innocent until proven guilty is being resolutely turned on its head in tax cases. So says ContractorCalculator CEO Dave Chaplin, alarmed at the fact that contractors using perfectly legal tax schemes can in future be treated by the taxman as guilty before even having a chance to state their case. Responding to Royal Ascent being given to a host of new tax powers, Chaplin says: “HMRC has embarked on a course that takes it outside of the acceptable limits of the law. And now it even wants ‘accelerated payments’ that allow HMRC to remove cash from your bank account in case they think you might be guilty.” More...
North Sea contracts may slow as clients adopt a ‘wait and see’" approach
Contractors in the North Sea may see a slowing of contracts as oil and gas firms await the outcome of a series of ‘unknowns’. According to Deloitte's Petroleum Services Group (PSG), issues coming together to make firms ‘wait and see’ include the rising operating costs that are impacting on activity and investment. At the same time, the industry awaits the new regulator recommended by the so-called ‘Wood review’. On top of all this is the forthcoming Scottish Referendum; a vote for Scotland to leave the UK would naturally prompt political and economic uncertainty, albeit combined with new opportunities that could encourage contract growth. More...
Contract numbers likely to be boosted by UK’s leading G7 position
Contracting could be boosted over the coming months with a GDP rise of 3.1% forecast for the rest of the year, and the UK showing the strongest growth rate among G7 countries. The EY ITEM Club, which makes its predictions using HM Treasury’s forecast model, says the UK’s economy “will enjoy a perfect combination of consumption financed by strong employment … accompanied by low inflation and low interest rates”. An upbeat Peter Spencer, chief economic advisor to the EY ITEM Club, adds, “This unusually good performance is holding out the promise of a sustained, low inflationary expansion.” More...