Contractors seeking mortgages encouraged to apply before interest rate rises
Contractors considering new mortgages should act now, ahead of potential interest rate rises that have been hinted at “the turn of the year” by Bank of England Governor Mark Carney. This is according to Taj Kang, mortgages expert at CMME, who highlights: “Early engagement is essential as it can take some time to secure a formal mortgage offer from a lender.” Kang predicts that rates will change in early 2016, but warns contractors that the markets will react in advance. A predicted 2% hike in interest rates will add around £6,000 a year to a typical £280,000 contractor mortgage. More...
Contractors showing record confidence levels, says IPSE
Contractors are increasingly confident in the economy and their own businesses, according to the latest Freelancer Confidence Index published by the Association of Independent Professionals and the Self Employed (IPSE). 41% of contractors expressed confidence that their business performance will improve over the next year, compared to 25% who are not confident. However, 46% of contractors also expect overall costs to increase over the upcoming year, reflecting IPSE concerns that measures included in the Budget could cause current optimism to be short-lived. “It’s great to see people who work for themselves are confident in their business prospects even as they report their business costs increasing,” highlights IPSE Chief Executive Chris Bryce. More...
Oil and gas contractors set to benefit from continued tough business environment
Contractors in the oil and gas sector could benefit from a continually fragile business environment, according to Oil & Gas UK’s Business Sentiment Index for the second quarter of 2015. Despite a slightly improved outlook, the report still showed low confidence in future prospects, which benefits contractors as they are often seen as a low risk solution to keep the oil and gas pumping. Oil & Gas UK operations director Oonagh Werngren notes: “While [services companies] cite uncertainty regarding future orders as a concern, they also highlight improvements in how their clients engage with them to identify cost-effective ways to address the current business climate.” More...
Contracting opportunities in finance and accounting increasing, says APSCo
Finance and accounting contractors are enjoying increased opportunities, according to new survey data provided by the Association of Professional Staffing Companies (APSCo). The survey reveals that contracting vacancies within finance and accounting have increased by 9%, compared to a 1% increase in overall contracting vacancies. APSCo Chief Executive Ann Swain attributes much of this to recent mass upheavals at major banks: “Widely publicised UK job cuts within financial services look set to create further demand in the area as contractors are brought on board to cover gaps left by the loss of permanent positions.” More...
Oil and gas contractors could set their sights on Iran to replace North Sea contracts
Contractors could soon be targeting work in Iran as a replacement for falling contract numbers from the North Sea, as the country recently announced it was targeting oil and gas projects worth $185bn by 2020, after an agreement was reached with the UN to relieve trading sanctions, Reuters reports. Iran’s deputy oil minister for commerce and international affairs Hossein Zamaninia highlights a new model contract which: “further aligns the short- and long-term interests of parties involved,” meaning greater job stability for contractors. Zamaninia claims Iran will introduce its identified projects and the new contract model within two to three months. Iran currently has the world’s largest gas reserves and fourth largest oil reserves. More...
Contractors targeting manufacturing clients see their prospects improve
Contracting prospects in UK manufacturing have improved marginally as growth in the sector continued into the second quarter of 2015. This is according to the latest CBI Quarterly Industrial Trends Survey. Contractors should target their clients carefully though, as prospects for further growth look to be hindered by predicted fewer exports over the next quarter, due to the stronger sterling and falls in competitiveness in the EU. “Despite sterling pressures and the challenging global backdrop, investment intentions remain above average, particularly in innovation and training,” highlights CBI Deputy Director-General Katja Hall. More...
Contractors working and living in Scotland informed of new income tax details
Contractors working in Scotland have been made aware of further details regarding the introduction of the Scottish rate of income tax (SRIT) by HMRC, reports Accounting Web. From 6th April 2016, UK income tax rates will be reduced by 10p in the pound for Scottish taxpayers, and increased by the SRIT. The SRIT itself is due to be announced in November 2015. A Scottish taxpayer is someone whose sole or main place of residence is in Scotland for all or most of the tax year, so contractors living in the UK but working in Scotland won’t have to pay SRIT. More...
HMRC bids to extend data gathering powers to tackle online ‘contractorpreneurs’
HMRC intends to further extend its data-gathering powers, targeting contractors and small businesses in what it describes as a bid to ‘tackle the hidden economy’. In its recently published consultation document, HMRC estimated a tax gap of £5.9bn in 2012/13 as a result of businesses and contractors failing to declare income largely from online activities, such as developing apps and online selling. HMRC plans to consult with business intermediaries, such as online marketplaces and app developers, as a source of information, following the proliferation of the usage of intermediaries in the digital economy. Contractors have until 14th October to give feedback in response to the document. More...
Contractor pensions providers obstructing pension freedoms face inquiry
Contractors looking to take advantage of the new pension freedoms introduced in April have been invited to partake in an immediate consultation launched by the Treasury. The investigation seeks input from both pension specialists and consumers and aims to explore the possibility of cutting or capping exit charges. This comes after Chancellor George Osborne recently raised concerns over a lack of cooperation by some providers with regards to making pension freedoms available. The consultation, along with an online survey, will run for the next 12 weeks, with the response due to be published in the autumn. More...
Contractors must renew tax credits today or risk losing future benefits
Contractors have been warned that today (31st July) is their last chance to renew their tax credits for the upcoming year. Any payments will cease for anybody who misses the deadline. Even high earning contractors can claim for tax credits, and head of tax at contractor accountant Abbott Moore LLP James Abbott believes it would be prudent to make a ‘protective claim’: “It is always advisable to make an annual claim because you never know what the future holds, and a contractor’s circumstances can change.” More...