Contractors advised to take prompt action on mortgages and investments
Contractors in search of good mortgage deals or investment opportunities other than buy-to-let properties should act sooner rather than later, experts warn. “Lenders with fresh annual lending targets want to incentivise borrowing during February,” highlights CMME's Taj Kang, who notes that such deals will only be available for a limited time. Contractor Wealth’s Angela James also encourages contractors to take advantage of current tax allowances before changes come into play: “With the dividend tax changes taking effect from April 2016, contractors should be considering other tax efficient methods of taking cash out of their business.” More1
Contractors continue to profit from favourable market conditions
Contractors are poised to capitalise on continued improved confidence in the economy in 2016, as clients plan to take on more contingent staff to make the most of the buoyant economic climate. The Recruitment and Employment Confederation’s (REC) JobsOutlook for December 2015 shows that 82% of businesses believe economic conditions are improving. 99% of clients are planning to either increase or maintain contractor headcount over the coming three months as a result. Contractors in technical and engineering positions can expect to be particularly sought after, with 15% of clients identifying this as the area with the most severe skills shortage. More2
ContractorCalculator takes a look at contracting in 2015
Contractors faced many challenges during 2015. Dividend tax changes and restrictions on travel and subsistence expenses tax relief were two examples of legislative changes introduced by a Government intent on increasing its tax yield from the contingent workforce. However, these measures have done little to reduce the appeal of contracting, as research carried out during the year has highlighted. IR35 is to remain unchanged for another year, despite an HMRC review and media rumours warning of a draconian crackdown. Meanwhile, the formation of a contracting thinktank by IPSE looks set to provide a greater insight into the sector. Read the review in full, here: More3
IT contractor prospects in UK amongst best in world
IT contractor prospects in the UK are amongst the best in the world, as new research has found that the proportionate use of contractors in the sector is the fifth highest globally. Experis IT Skills Research reports that 76% of UK businesses engage with IT contractors extensively, a figure which surpasses that of both the US (66%) and Japan (65%). “More UK organisations are using contractors as a go-to workforce planning solution, rather than a temporary means to cover shortfalls in permanent positions,” highlights Experis Europe Managing Director Geoff Smith. More4
Contractor quarterly tax returns will mean more inaccurate reports, accountants warn
HMRC’s plan to request quarterly tax returns from contractors and other taxpayers will result in an increased amount of inaccurate reports, accountancy group UHY Hacker Young has warned. HMRC made the announcement during the Autumn Statement 2015 as part of its new digital tax initiative which it plans to implement fully by 2020, Tax News reports. “Despite repeated promises to the contrary, the taxman has once again added to the red-tape burden for SMEs,” notes Roy Maugham, Tax Partner at UHY Hacker Young. “These changes will just prevent SMEs from focussing on core money-raising activities.” More5
Scottish contractor tax rate decision applauded
The news that the tax rates for contractors living in Scotland will remain aligned with the rest of the UK has been welcomed by the Freelancer and Contractor Services Association. They had raised concerns that different tax rates could cause difficulties for contractors in establishing whether they are Scottish taxpayers, as well as complicating decisions to engage in contracts which require temporary relocation. “Contractors already have to deal with a lot of red tape so I am pleased that John Swinney has kept income tax rates in line with the rest of the UK,” highlights CEO Julia Kermode. More6
UKCS remains a safe working environment for contractors
Oil and gas contractors working in the UK Continental Shelf (UKCS) are benefitting from sustained safe working conditions, the Annual Offshore Statistics & Regulatory Activity Report 2014/2015 confirms. The report – published by The Health and Safety Executive – indicates that whilst 332 installations were operating in the UKCS in 2014/15, there was only one fatality, Rigzone reports. Over the course of the last ten years there have been just eight fatalities in the UK’s offshore oil and gas industry, despite the millions of registered worker days. More7
Contractors offer solution as study reveals increasing need for STEM workers
Contractors offer an ideal immediate solution for clients in search of workers with STEM skills, after a recent study found that most businesses still struggle to source suitably skilled candidates. Randstad’s fourth-quarter Workmonitor survey found that 42% of workers around the world claim their employers have an increasing need for staff with STEM skills. Whilst respondents urge students to undertake more STEM-based subjects – 71% said more students should focus on a career in STEM – contractors are well placed to fill growing skills gaps in the meantime. More8
Oil and gas contract opportunities to arise from award of new onshore blocks
Oil and gas contractors in the UK, particularly those with unconventional exploration and production skills, may find fresh contract opportunities after the Oil & Gas Authority (OGA) announced that 159 onshore blocks are being formally offered to successful applicants under the 14th Onshore Oil and Gas Licensing Round. The blocks will be incorporated into 93 onshore licences, with around 75% of the blocks relating to shale oil or gas. As OGA Chief Executive Andy Samuel highlights, there has been a high degree of interest, despite to sector’s recent difficulties: “I am pleased that the 14th Onshore Round attracted strong interest and a high quality of proposed work programmes.” More9
Contracting figures in Netherlands show strong year-on-year growth
Contracting demand and productivity in the Netherlands are both showing signs of strong long-term growth, according to figures from the Dutch Federation of Private Employment Agencies (ABU). Hours worked by contractors increased by 10% in period 12 (week 45-48) of 2015, compared with the same period in 2014. Meanwhile, average turnover also grew by 11%, Staffing Industry Analysts reports. Notably, the technical sector was seen to have shown the biggest improvement, with hours and turnover increasing by 15% and 13% respectively. The industrial sector also saw a 10% increase in terms of hour worked. More10