High earning contractors the target of the deputy PM’s proposed emergency tax
Higher earning contractors are likely to be in the frame as targets of deputy prime minister Nick Clegg’s “emergency tax”. In an interview with the Guardian’s chief political correspondent Nicholas Watt, Clegg announced that: “He is embarking on a battle to persuade his Tory coalition partners of the need to ensure the rich shoulder a greater burden of the economic pain.” The response was swift and predictable, with chancellor George Osborne quick to distance himself from the proposals and tax experts claiming such a scheme would be unworkable. More...
IT contractors in the NHS are “unlikely to trigger” off-payroll and IR35 rules
IT contractors in most demand in the NHS are exactly the kind of senior level genuine contractors running their own software development business who are most likely to be well outsideIR35, and unlikely to trigger the off-payroll rules. This is according to Don Tomlinson, managing director of specialist NHS IT recruiter max20. He also highlights that current demand for IT contractors with commercial experience is high and NHS day rates are increasingly attractive. More...
Controlling persons legislation a “sensible way of reducing costs”, believes recruiter
The controlling persons legislation will be a “perfectly sensible way of reducing cost” for public sector clients hiring contractors. This is according to interim agency Green Park’s Raj Tulsiani, quoted in Recruiter. He believes the legislation “will also allow interim managers to be used as a cost-effective alternative to management consultants”. ContractorCalculator CEO Dave Chaplin disagrees; he believes that the new rules, if they come into force, may permanently damage the UK’s flexible workforce. He told Recruiter: “I cannot see any major changes to the government proposals. The government is going to do what it likes, just like with IR35. I am prepared to be disappointed.” More...
Controlling persons legislation should only take effect after two years, says ARC
Interim management contractors should enjoy two years exemption from the controlling persons legislation, and then the rules should only apply if the nature of the role is no longer project-based. This is the solution the Association of Recruitment Consultants (ARC) has submitted in its response to the controlling persons legislation consultation. “We believe that generally where someone is hired in an interim or senior temporary role which may fall into the category considered under the consultation, they are not employees, and have no intention of being so,” says ARC chairman Adrian Marlowe. More...
Oil and gas contracting suffering skills shortages, leading firms to employ, not contract
The global oil and gas sector is started to suffer from skills shortages, with firms responding by increasing employee numbers to improve retention, and choosing to hire fewer contractors. Despite this trend, according to the Hays Global Quarterly Report into oil and gas recruitment, the UK oil and gas market continues to strengthen, with strong demand across the majority of disciplines. Three specific skills are most sought after: exploration geophysicists, subsea installation engineers and structural engineers with offshore jacket experience.
Self-employment, employment and vacancies all increased during April to June
Self-employment, employment and the number of vacancies all increased during the quarter to June 2012, despite the economy enduring a third quarter of recession. Many analysts have been puzzled by the strength of the UK labour market; the latest Confederation of British Industry (CBI)/Manpower Group Labour Market Update suggests a range of contributory factors. These include the so-called ‘Olympic effect’, wage restraint and deliberate skills retention by employers holding onto key workers. Contractors are likely to benefit as many employers are turning to flexible workers to fill skills gaps during this period of economic uncertainty. More...
Contractors can find the latest tax updates in HMRC’s August agent update
Contractors can find out about the latest tax updates and guidance from HMRC’s August agent update. This month’s edition includes more information on the Real Time Information (RTI) initiative for Pay As You Earn (PAYE) reporting, which will affect all limited company contractors from April 2013. It also includes details of what information new companies are required to provide to HMRC on registration and provides a summary of outstanding consultations. Relevant updates, such as on the RTI initiative for limited company contractors, will shortly be covered in more detail by ContractorCalculator.co.uk.
Contractors can expect “broadly stable” headcounts in business and professional services
Contractors can expect headcounts to remain “broadly stable” in the business and professional services sector, according to the Confederation of British Industry’s (CBI) Service Sector Survey. The survey also shows that sentiment and performance across both the consumer and business/professional sectors “remained testing” in the three months to August, and prospects are poor or flat. The bright spot is that firms in the business and professional services sector plan to increase expenditure on IT. More...
Media contractor tax guidance update from HMRC
Contractors working in the media sector with film and TV clients can access the latest guidance notes from HMRC on how to operate compliantly within the sector. The rules on whether payments to freelancers by clients are net of income tax and National Insurance Contributions (NIC) are quite complex, but genuine contractors and freelancers should have no difficulty in justifying the use of their personal service company to both clients and HMRC.