Contractors could benefit from measures in Chancellor’s Autumn Statement
Contractors are likely to emerge relatively unscathed, and some may actually be better off, as a result of the measures announced in the Chancellor George Osborne’s Autumn Statement. Although originally billed as ‘not a Pre-Budget Report’, the statement had several measures designed to stimulate economic growth. These included investment in infrastructure projects and housing that are likely to directly benefit many contractors in related industries. Freezing fuel duty and holding down rail fare increases will help reduce contractors’ transport costs. More…
Contractors urged to tailor CVs to maximise their chances of winning contracts
Contractors are being urged to finely tailor their CVs for each individual contract application, in line with the advice given in the Contractors’ Handbook. Results from online recruiter Webrecruit’s latest Jobseeker Survey reveal that only 30% of jobseekers actually bother to tailor their CVs. However, 60% of those surveyed always submit a customised covering letter. Webrecruit CEO Phil Roebuck offers this advice to contractors: “With the significantly increased number of applicants for each vacancy, tailoring your CV for a specific role is a no-brainer. Take the effort to analyse each job specification and extract the relevant keywords for inclusion within your CV.” More…
Contractors’ ‘professional’ status under AWR called into question
Contractors’ professional status under the Agency Workers Regulations (AWR) has been called into question by the Department for Education’s (DfE) interpretation of the legislation. According to the Association of Recruitment Consultancies (ARC), by automatically considering supply teachers as within scope of AWR, despite teaching being universally recognised as a profession, the DfE is setting a dangerous precedent. Regulation 3 (2) of AWR confirms professionals providing services to a client are considered to be outside AWR. ARC Chairman Adrian Marlowe says: “We would not want to see an extension of the idea that any government department or public sector body can interpret the law…in this way. Ultimately it is for the Courts to decide these issues.” More….
Contractors will form part of the solution to prevent the UK entering a ‘lost decade’
Contractors will have a key role to play in preventing the UK from entering a ‘lost decade’ of economic stagnation. A report by thinktank Reform proposes that a flexible labour market, innovation and ‘creative destruction’ of established markets and industries are essential if the UK is to emerge as a dynamic and highly productive economy. Reform also calls for a more stable tax regime to place more money into the hands of contractors, enabling them “to invest their own resources to develop their careers and add to their own capability”.
Contractors experiencing a slowdown in manufacturing recruitment
Contractors working for clients in manufacturing may be experiencing a reduction in available contracts, as output in the sector declined for the second successive month. The latest Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Manufacturing Purchasing Managers’ Index (PMI) shows that the UK’s manufacturing sector contracted in November. Deteriorating domestic demand and a slow-down in orders from mainland Europe, the USA and Asia are to blame, says the survey. Of greatest concern to contractors is the fall in employment and recruitment in the industry, with employment falling at the fastest pace since October 2009.
Umbrella contractors to benefit from new employee rewards scheme
Umbrella contractors can benefit from a new ‘blue chip’ style employee benefits and rewards scheme launched by umbrella solutions provider Giant. The scheme, called Giant Advantage, is said to offer contractors the same level of rewards and benefits that have only previously been available to workers at ‘blue chip’ corporations. Giant’s umbrella contractors will be able to enjoy exclusive discounts at stores like Marks and Spencer and a pensions and healthcare plan from Scottish Widows.
Contractors trading over the VAT threshold have only a limited time to register
Contractors who have been ‘persistently’ trading over the VAT threshold, currently set at £73,000, and have informed HMRC of their intention to register but have not yet done so, only have until the end of 2011 to sign up. The alternative is steep penalties and even criminal prosecution. HMRC’s original VAT compliance campaign, run over the summer, focused on trades that include the core contracting disciplines of business services and construction. Contractors voluntarily registering will face penalties of only 10% of unpaid VAT compared to HMRC’s usual practice of fining tax avoiders 100% of what they should have paid.
50p tax rate is causing wealth creators, including contractors, to move wealth outside UK
The 50p top rate of tax is causing wealth creators, including high earning contractors, to turn away from the UK, potentially losing the Exchequer billions of pounds in tax revenues. Research by the Centre for Economics and Business Research (CEBR) reveals that the UK’s top 270,000 ‘major wealth creators’, who represent the top 1% of income tax payers, contribute 25% of all income tax generated in the UK. The perceived high-tax regime that includes the UK’s 50p tax band is now causing these taxpayers to move their wealth elsewhere. CEBR forecasts this will cost £1bn a year by 2015. More…