HMRC confirms plans to proceed with public sector IR35 reforms
Plans to reform the policing of IR35 in the public sector are set to go ahead, HMRC confirmed at a recent compliance seminar. The good news for contractors is HMRC noted that no private sector roll out is to follow, with representative Philip Horswill commenting: “The reality is that the private sector is a very different beast to the public sector, so it doesn’t necessarily follow that something that works in one sector will work in the other.” If you’re a public sector contractor, you need to consider the impact the changes will have on you and how to protect yourself from the financial risk they present. More...
PRISM needs your help to support strategic review
Trade body PRISM needs your help to support a strategic review into the contracting sector - and combat the Government’s ‘sticking plaster’ approach to tax legislation. With efforts to lobby the Government to conduct a review falling on deaf ears, PRISM CEO Crawford Temple has outlined plans to examine the contracting sector and tax on a broader scale, adding: “Some of these rules are creating false employment, so we need to make sure that the rules are fit for purpose.” If you’re a contractor, ask your provider to support PRISM by helping to fund the strategic review. More...
Construction and engineering contractors on hand as clients express skills concerns
Skills shortage fears look likely to benefit contractors with heightened demand in the wake of Brexit. The latest JobsOutlook from the Recruitment and Employment Confederation (REC) shows that engineering and construction top the industries with clients finding difficulties sourcing candidates. REC chief executive Kevin Green warns that the decision to leave the EU could intensify matters: “With British applicants already in short supply, policymakers must ensure that employers can continue to access people from Europe to fill the jobs available.” If you’re a contractor, make sure you’re alert to any opportunities that may arise. More...
Brexit likely to intensify oil and gas skills shortage
The North Sea faces a further depletion of its talent pool in the wake of Britain’s decision to leave the EU, which could mean heightened demand for UK oil and gas contractors, Energy Voice reports. Pinsent Masons employment law specialist Katie Williams warns that the end of free movement between the UK and the EU would hit the sector hard, adding: “In previous years, the industry has suffered sharply from skills shortages and it relies heavily on EU nationals who keep the sector ticking over.” More...
Further HMRC spending cuts will “chill the blood” of contractors
MPs have slammed plans by HMRC to reduce spending on customer services by 34% by 2021 as it seeks to digitise the tax system, The Guardian reports. The Commons public accounts committee warns of another major drop in standards, following the collapse of helpline services in 2014/15 when staff levels were cut back by 5,600. Labour MP Meg Hillier, who chairs the committee, says the prospect of further customer service spending cuts “will chill the blood of many taxpayers”, adding that it would be “a dismal message to send to small businesses and the self-employed”. More...
Contractor demand could benefit from skills concerns
Skills shortages are becoming a rapidly growing concern for UK firms, who could look to source talent from the contract sector as suitable full-time candidates become increasingly sparse. Staffing Industry Analysts cites a report from the Chartered Institute of Personnel and Development (CIPD) which shows that 69% of UK companies are worried about hiring enough sufficiently skilled workers. This marks a 14% increase on the figures returned when the same survey was carried out in 2015. If you’re a contractor without a contract, now might be a good time to re-enter the market. More...
Brexit could impact contractor prospects by halting infrastructure projects
Contractors in the construction and engineering sectors are warned that they could suffer the immediate effects of Britain’s decision to leave the EU as experts warn that uncertainty could stunt infrastructure projects. The former Chancellor set out the National Infrastructure Plan (NIP) during the 2016 Budget in March, committing £483m of investment to projects such as HS2 and Crossrail 2. The investment looked set to provide a valuable source of contract opportunities, but experts have warned that dampening confidence could stifle progress. Notably, a survey by S&P Global Ratings found 71% of UK infrastructure investors believe Brexit could halt investment for two years or more. More...
IPSE calls for Government response to The Digital Economy report
The Government is being called to act on recommendations made in new House of Commons report ‘The Digital Economy’. “It is vital Government provides more detailed data on the digital economy, as well as a clear plan on regulation in a post-Brexit landscape,” comments Simon McVicker, director of policy at the Association of Independent Professionals and the Self Employed (IPSE), who emphasises the need to address digital infrastructure to help the UK compete on a global stage. If you are one of the estimated 10% of the UK’s freelance workforce operating in the IT sector, you may be interested to read the report recommendations, here. More...
IT contractor demand to bounce back after EU uncertainty
IT contractors could now expect a resurgence in demand after IT outsourcing in Europe reduced substantially in Q2 2016, Computer Weekly reports. The value of outsourced contracts dipped by 28% to €1.2bn, compared to the same period in 2015. This is according to figures from ISG, whose president John Keppel suggests uncertainty in the build up to the EU referendum played a part: “The region’s traditional sourcing markets pulled back in the second quarter and came in at lower levels than projected, due to some challenging macro-economic factors inside the EU.” More...