Contractor’s IR35 tribunal win brings MOO back into the frame
Contractor Mark Fitzpatrick’s IR35 victory against HMRC has catapulted Mutuality of Obligation (MOO) back into top factors for determining IR35 status. After a seven-year battle, a Bristol tax tribunal cleared engineering contractor Fitzpatrick of using his company, MBF Design Services, to avoid tax. According to the tribunal, key factors were that client Airbus could cancel the contract without notice and contractors were sent home on occasions when computer systems went down, whilst employees had to remain at their desks. More…
IT contractor demand soars north of the border
Contractor demand in Scotland outpaced the rest of the UK, with demand for IT contractors increasing by 12% month on month, according to December 2010’s Bank of Scotland Report on Jobs. Overall demand increases and low availability pushed up contractor pay, which grew at the fastest rate since May 2008. In contrast, demand for engineering and construction and interim management contractors in Scotland fell. More…
IT contractors switch from public sector to financial sector in search of contracts
IT contractors anticipate growth in the financial services sector will create the most IT contracting assignments in 2011, as confidence in the public sector slumps to an all-time low. So says the latest report from giant group plc, which shows that 36.7% of IT contractors are forecasting banks ramping up IT investment. According to giant’s managing director Matthew Brown, compliance is driving financial services contractor demand: “The financial services sector is facing intense regulatory pressure to make transactions more transparent and improve risk monitoring, which is spurring a huge investment in IT.”
London’s IT contractors to remain at the heart of HSBC global operations
London’s IT contractors will remain at the heart of banking giant HSBC’s global operations. following reports in the Financial Times (FT) that HSBC’s new chief executive Stuart Gulliver has dropped plans to relocate to Hong Kong. According to the FT’s Banking Editor Patrick Jenkins, Gulliver’s decision is based on his belief that “the UK time zone is the most efficient from which to manage a global business”. Gulliver had previously warned that HSBC could relocate abroad, which would result in the loss of a significant number of London based IT contracts. More…[free registration required]
Budding contractors urged to let government know their views on help they’d like
People about to take the leap into contracting have the opportunity to make their views known to the government about their impending self-employment via a survey being run by the Department of Work and Pensions (DWP). The objective of the survey is to provide greater insights into what government help and support potential entrepreneurs require to get up and running, and earning, more quickly. Current support for business is supplied by Business Link, most of whose non-online services are due to be axed later in the year. More…
HMRC staff paid bonuses despite catalogue of tax-code blunders
Contractors on agency payrolls and trading via umbrella companies who have been adversely affected by tax-coding blunders won’t be pleased to hear that HMRC staff were paid bonuses last year. According to The Telegraph, requests made under the Freedom of Information Act have revealed that a bonus pot of £13m had been shared among tax officials last year, an increase of £800,000 on the previous year. More…
Recession increased market demand for contractors – Danbro
Confirming that contractors can thrive in good economic times and bad, Damian Broughton, a partner at contractor accountant Danbro, believes the recession actually increased market demand for contractors: “Even during the recession, many firms found they could save money by outsourcing work and, as the economy has started to recover, using contract and freelance staff offers a more flexible way to bring in the manpower they need.” Danbro is this year celebrating ten years in business. Founded in 2001, it is only one of two firms who in the last four years have featured in the Sunday Times Fast Track 100 list of the UK’s fastest growing companies.
New contractors can benefit from comprehensive company start-up service
Contractors at the beginning of their contracting career can benefit from a new comprehensive limited company start-up package launched by contractor accountant ClearSky. Whereas many new contractors will have used one service provider to incorporate, a separate accountancy supplier and yet another insurance provider, ClearSky’s Assure service provides an all-in-one package, plus ongoing management accounts. This will be particularly valuable to contractors not used to managing the finances of a small business. More…