Contractors will directly benefit from the Autumn Statement 2014
The vast majority of contractors will benefit from the Autumn Statement 2014, in which the Chancellor George Osborne announced a raft of tax, pensions and savings measures that will put cash directly into contractors’ pockets. Even the proposed consultation over the use of umbrella companies has a silver lining as most industry experts believe the end result will be greater compliance in the sector. And the government finally acknowledges that the increase in self-employment is a structural change that is here to stay. More...
Oil and gas contractors may see pressure ease following Autumn Statement tax breaks
Contractors with clients in the UK’s oil and gas sector may have a brighter future following the announcement in the Autumn Statement of tax breaks for international energy companies and operators continuing to invest in North Sea exploration and production. The measures introduced by the Chancellor are designed to slow the decline in North Sea activity and secure ongoing contracts for contractors. “We take the Chancellor’s announcement of a reduction in the industry’s tax rate as an important first step to improve the fiscal competitiveness of the UK North Sea,” notes Oil & Gas UK chief executive Malcolm Webb. More...
Contractor input requested to help the OTS employment status review
Contractors have been asked to make their views known about employment status in a short online survey launched by the Office of Tax Simplification (OTS). The OTS has been tasked with reviewing the boundary line between employment and self-employment and the impact of changing work patterns on their definition. “We are gathering evidence of where the complexities lie in determining whether a person is employed or self-employed for tax and views on how the situation might be simplified,” says the OTS. The survey only takes about 15 minutes. More...
Contractors are well placed to secure the economic recovery by filling skills shortages
Contractors have the skills and capabilities that are needed to fill the skills shortages threatening to hold back the UK’s economic recovery. The Recruitment and Employment Confederation’s (REC) chief executive Kevin Green told Staffing Industry Analysts that “Last year we had nine areas of skills shortages, now we have 43 areas. Every single type of engineering is in short supply, from mechanical to software, civil to electrical.” IT is also an area where skills are in short supply. Green and other business leaders believe that these shortages in key contracting disciplines are “acting as a break on our economic recovery”. More...
Contractor hiring increases alongside broad-based business activity growth
Contractor hiring increased during November 2014 as the UK continued to enjoy broad-based business growth across the manufacturing, construction and services sectors. This is according to the latest set of Purchasing Managers’ Indexes (PMIs) from Markit and the Chartered Institute of Purchasing and Supply (CIPS).
- Growth in the manufacturing sector has been sustained for 21 successive months, according to the UK Manufacturing PMI. During November the sector “saw further solid expansions of output, new orders and employment”, resulting in increased hiring by contractor clients
- The UK Construction PMI showed strong contract and job creation during November. The report said that: “November data pointed to a rise in new business volumes for the nineteenth successive month”.
- The services sector, which accounts for around 78% of the UK’s economic output, grew at a rate that surprised analysts. The UK Services PMI highlights that: “Advertising and marketing drives provided further support to sales efforts, and overall new business growth strengthened since October”.
Oil and gas contractors require niche skills to stay in contract, as investment falters
Oil and gas contractors must focus on building on their niche skills, particularly in areas such as geosciences and engineering to remain in contract in the face of falling investment in the UK oil and gas sector. The 21st Aberdeen and Grampian Chamber of Commerce (AGCC) Oil and Gas Survey highlights that: “Half of operators reported a reduction in contract staff in 2014 and almost two-thirds expect a further reduction in contract staff in 2015.” More...
Contractors should consider contracts in South Africa, as the fastest growing market
Contractors should consider targeting clients in Sought Africa as, according to Staffing Industry Analysts’ John Nurthen, it is the fastest growing contract marketing in the world. Nurthen told the Recruiter that: “South Africa will continue to be a shining star in the world staffing market with anticipated 15-16% growth.” In contrast, although the UK’s contract market will continue to grow, it will be at a more gentle 7% during 2015, which is “cooling off a little bit form 2014”. More...
Tax avoiding contractors receive fresh guidance on new avoidance measures
Contractors who use, or who have used, tax avoidance schemes have received new guidance in the form of a new factsheet from HMRC about its new anti-avoidance powers. The guidance begins by saying “We have given you this factsheet because you have used a tax avoidance scheme” and goes on to demand that the taxpayer “takes necessary corrective action” and “make a payment of the amount that relates to your use of the scheme”. It describes how Follower Notices and Accelerated Payment Notices (APNs) work and what contractors should do when they receive one. More...