Oil and gas contractors encouraged to seek out North Sea opportunities
Oil and gas contractors looking to maintain their careers in the North Sea have received indications that prospects will improve, despite confidence levels amongst service providers falling to an all-time low. The Aberdeen & Grampian Chamber of Commerce’s (AGCC) 23rd Oil and Gas Survey points towards concerns over “excessive” amounts of redundancies and a stronger inclination from firms to explore alternate revenue streams as signs that contractor demand may improve. 58% of firms are concerned that redundancies will leave businesses at risk of a skills shortage, whilst four in five expect to engage in decommissioning work within the next five years. More...
Contractors need to secure their tax affairs, amidst IR35 uncertainty
Contractors are facing further uncertainty over their work status and tax dealings, after the Government remained tight-lipped over IR35 during the Autumn Statement. According to Duncan Strike, director of contractor accountants Intouch, this adds to a growing list of reasons why contractors should engage with specialised accountants: “Contractors need to think about how IR35 changes, amongst other things, could affect them, and what they can actually do about it.” As well as the lack of clarity over IR35, Strike identifies the introduction of quarterly tax returns as another factor which is set to place a burden on contractors. More...
IT contractor rates see solid increase, year-on-year
Contractor rates in the IT sector are benefitting from a solid long-term growth trend. This is according to Computer People’s IT Monitor for Q3 2015 which shows that contractor rates were up by 3.3%, year-on-year. The report also highlights that the contract market experienced a greater level of growth than the permanent market between Q2 and Q3, with demand for contractors increasing by 4.2%. Contractor demand wasn’t solely concentrated in London, with the North West and South East both seeing significant demand spikes for various types of professionals. More...
Contractor outlook looks bright as sectors record steady growth
Contractors can draw confidence from the Purchasing Managers’ Indexes (PMIs) for November 2015 from Markit and the Chartered Institute of Purchasing and Supply (CIPS). Figures show that the construction sector remains in growth territory, whilst prospects in the manufacturing sector have continued to improve after breaking from a recent subdued trend in October. Meanwhile, a lack of suitable candidates in the service sector means contractors could be set to benefit as firms seek to manage capacity by hiring contingent workers. This month’s PMIs highlight:
- “UK manufacturing is moving back into expansion mode during quarter four”, as indicated by the latest UK Manufacturing PMI which shows growth in the sector to have eased only slightly from October’s peak. Increased contractor intake was recorded in the consumer goods sector, whilst intermediate and investment goods retained contractor headcounts following the solid growth seen in October.
- Construction sector growth softened in November. The UK Construction PMI points towards a weaker rise in new business volumes as being the dominant factor behind this. Following on from October’s accelerated figures, staffing levels moderated in November, although sub-contractor usage continued to rise at a solid pace. Firms remain optimistic about business, with 55% forecasting a rise in output over the next year.
- Growth in activity in the UK service sector continued to rebound from September’s 29-month low, according to the UK Services PMI. Whilst activity was supplemented by a further increase in incoming new work, staffing levels didn’t quite rise at the same accelerated pace. “The rate of job creation remained resiliently robust in November despite widespread difficulties finding suitable staff”, suggesting that contractors short on work should find demand for their services.
Oil and gas contractors could aid HS2 development
Oil and gas contractors who are struggling to source work in the UK’s North Sea could see their skills utilised in the development of high-speed rail network HS2. Recruiter reports that the UK currently lacks sufficient skills to meet deadlines for the project, with engineering recruiters pointing towards engineers in the oil and gas sector as a potential source of talent. “It’s likely we’ll see a fair amount of skills being released from the oil & gas contracting sector and making its way into the rail again,” notes David Leyshon, chairman at technical recruiter CBSbutler. More...
Construction contractors forced into CIS registration
Contractors in the construction sector are choosing to register for gross payment status under the Construction Industry Scheme (CIS) as a result of worsening delays at HMRC in paying annual tax refunds. Data obtained by contractor accountant Nixon Williams shows that 105,000 construction businesses were registered for gross payment in 2014/15, the highest level in four years, reports The Construction Index. CIS subcontractors often overpay tax and frequently have to wait for longer than six months for refunds worth tens of thousands of pounds, leaving many in negative cashflow and near the brink of bankruptcy. More...
OTS commissioned to review alignment of income tax and NICs
Contractors are being encouraged to provide feedback to Office of Tax Simplification (OTS) regarding the complexities concerning the differences between income tax and NICs, after an open consultation was announced. This comes following the Treasury’s confirmation that the OTS will be carrying out a review examining the potential for aligning income tax and National Insurance contributions (NICs) more closely. Contractors can respond by taking part in a short survey, or can email their feedback directly to OTS-tax-nics@ots.gsi.gov.uk. The consultation closes on December 31 2015. More...
Contractors in Scotland readied for SRIT collection
Contractors whose main residence is in Scotland will soon be receiving letters from HMRC, preparing them for the upcoming Scottish rate of income tax (SRIT), Economia reports. Contractors will be amongst the approximate 2.6m taxpayers who receive the letter, intended to confirm the accuracy of the Treasury’s records. The SRIT is due to come into effect in April 2016. Those liable to pay the new rate will see their tax code prefixed by an ‘S’, whilst those on Pay As You Earn (PAYE) continue to see income tax collected from pay at source. More...