Shortages of IT, engineering and technical contractors forecast for 2013
Contractors in the IT, telecoms, engineering and related technical disciplines are predicted to be in short supply during 2013. This is according to the latest Recruitment and Employment Confederation’s (REC) JobsOutlook, which confirms that shortages in these sectors will arise, partly because “confidence seems to be growing fastest in the industrial sector of the economy”. More...
UK faces a shortfall of 82,000 scientists, engineers and technologists by 2016
Further strains are likely to be placed on the supply of skilled contractors in the core contracting disciplines over the next three years. The Sector Skills Council for Science, Engineering and Manufacturing Technologies, Semta, forecasts that “more than 82,000 scientists, engineers and technologists will be needed across the UK by 2016”. It also warns that a further 363,000 workers, including contractors, “whose qualifications are currently below world class standards,” will need to improve their skills.
Private sector hiring set to increase in 2013, but agency worker use may fall
Despite improved confidence that contractor clients will increase hiring during 2013, around a fifth say they plan to reduce their use of agency workers. The Chartered Institute of Personnel and Development’s Barometer of HR trends and prospects 2013 reports that concerns over the costs associated with the Agency Workers Regulations (AWR) are behind the move by one in five. The report also warns clients that contractors in managerial and professional roles will be the hardest to recruit and retain in 2013. More...
Oil and gas presents strongest opportunities for energy contractors
Oil and gas is twice as likely to offer contractors opportunities in 2013, when compared to other energy sectors such as nuclear and renewables. NOF Energy’s annual survey of its 420 members, which includes the views of many of the UK’s leading energy businesses and supply chain companies, shows that 78% believe oil and gas will remain the dominant priority in 2013. This is compared to 36% who believe offshore renewables will be the priority and 32% who see nuclear dominating energy over the next 12 months. More...
Contractor clients show “growing sense of economic optimism”: IoD opinion poll
Contractor clients are showing a “growing sense of economic optimism for the year ahead”, and support for Chancellor George Osborne’s austerity policies remains strong. In its business leaders poll conducted in December 2012, the Institute of Directors (IoD) found that sentiment has completely reversed from the same period in 2011, to reach +31%; in December 2011 it stood at -31%. Support for the Chancellor is strong: only 20% of those surveyed would like to see a slow down or reversal of austerity measures. More...
Blow for construction contractors as end-of-year recovery fails to materialise
Construction contractors, already reeling from disastrous performance of the sector during the last six months of 2012, had more bad news at the end of last year. The Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Construction Purchasing Managers Index (PMI) hit “a six-month low in December, driven by a steep reduction in housing activity”. The sector has shrunk for four of the past five months. The only bright spot for contractors was a slight rise in civil engineering activity, which bucks the overall trend and remains in positive territory.
Contractors face potential “tax chaos” over child benefit tax credit changes
Umbrella and agency payroll contractors with children and who are earning in excess of £50,000 face “tax chaos” if they have not made provision for the changes to child benefit rules. Limited company contractors can adopt a range of strategies to ensure they are not affected, but contractors paid a salary via Pay As You Earn (PAYE) have few options and, according to a Telegraph report by Robert Winnett, may be hit by an additional tax charge if they do not quickly opt out. More...
Further warning from HMRC for contractors to plan for past EBT use
Contractors who have used an employee benefit trust (EBT) tax avoidance scheme in the past should consider making provision for a future settlement with HMRC. The Telegraph’s Emily Gosden reports that HMRC is close to settlement with Geneva-based oil trader Vitol over past payments to its employees via EBTs. Such tax avoidance schemes were effectively outlawed by legislation in December 2011, but according to Gosden, HMRC believes that a “large number of EBT schemes didn’t work under the previous legislation,” potentially leaving contractors vulnerable to investigation. More...
Contractors experiencing highly variable returns on property investments
Contractors with investment property portfolios are experiencing highly variable returns as the UK’s property market polarised during 2012. The Land Registry’s November Market Trend Data shows an annual price increase of 0.9% across England and Wales, taking the average house price to £161,490. However, the overall increase masks highly variable regional trends: London property increased by 5.9% in the 12 months to November 2012, versus a fall of 2.9% in the North East.
Corporation tax “a question of judgement” for global firms, says advertising boss
The decision to pay corporation tax is “a question of judgement”, according to advertising giant WPP’s chief executive Sir Martin Sorrell, in an interview with BBC News. Sorrell added that “doing good is good business” in reference to Starbuck’s decision to voluntarily pay a one-off sum towards the corporation tax it is accused of avoiding. However, the comments are likely to anger many limited company contractors: unlike WPP, which chose to relocate from London to Dublin in 2008 to avoid the threat of increased corporation tax, avoiding business taxes in this way is not a viable option for contractors. More...