AWR guidance excludes limited company contractors, but umbrellas are caught
Contractors trading through limited companies who are genuinely in business will be excluded from the Agency Workers Regulations (AWR), but umbrella company contractors are specifically covered, according to draft guidance from the Department of Business, Innovation and Skills (BIS). Crucially, the guidance points contractors to the same tests of employment status on the Business Link website as are used to determine IR35 status. More…
Umbrella company contractors may benefit from the AWR ‘Swedish Derogation’
Umbrella company contractors may benefit hugely as a result of the Agency Workers Regulations (AWR), if umbrella companies opt for the so-called ‘Swedish Derogation’ to mitigate clients’ soaring pay cost fears. The AWR requires that umbrella contractors be paid the same as the client’s permanent counterparts, but not if the umbrella service provider opts to apply the ‘Swedish Derogation’. Under this, contractors would gain pay between assignments support to find work from their umbrella company employer. More…
Engineering, construction and IT contractors see March jump in demand
Contractors working in the core contracting disciplines of IT, engineering and construction have seen demand for their services increase again in March, according to the latest Recruitment and Employment Confederation (REC)/KPMG Report on Jobs. The private sector is driving demand for contractors as the public sector is shedding employees and temporary workers. Contractor and temp vacancies are at their highest level since July 2007, an unbroken nineteen-month run on increases in demand. More…
UK IT contractors and digital freelancers experience huge demand from overseas clients
UK-based IT contractors and digital freelancers are in huge demand, according to online business marketplace PeoplePerHour.com. Last quarter saw the largest ever number of projects for UK-only suppliers posted by overseas companies, with clients from the United States, India and Brazil dramatically increasing their project postings. The most sought-after skills include web and software development, search engine optimisation and social media expertise. More…
IT contractors seeking permanent roles may benefit from higher salaries
Now might be a good time for contractors thinking of moving back into permanent employment to make the jump. Research by IT recruiter CV Screen shows that permanent IT salaries have risen by 5% over the last 12 months, vacancies increased dramatically by 25% and there are 20% fewer applicants for each position compared to a year ago. “Within certain areas of the IT Jobs market we are seeing a lack of good quality candidates,” says CV Screen spokesperson Matthew Iveson. “In order to attract the best calibre candidates, employers have been forced to offer higher salaries for these positions.” More…
Contractors gain easier access to £7.5bn space sector as new agency launches
Contractors will be able to gain easier access to the UK’s space sector and its £7.5bn spend, as the UK Space Agency officially comes into being as an executive agency of the Department of Business Innovation and Skills (BIS). The new agency starts with a £10m budget and will act as a focal point for the industry in the UK, making it easier for businesses to collaborate, including contractors seeking IT and engineering contracts on space technology programmes. More…
IT contractors to benefit from renewed financial services investment in IT
IT contractors working in the financial services sector look set to benefit from 12 months of investment in IT infrastructure by UK financial sector firms. This is according to the CBI/PwC Financial Services Sector Survey, which also reveals that the first quarter of 2011 marked the third quarter of financial services growth for the sector. The only exceptions were banking, which was flat, and finance houses, which experienced a dip in activity. More…
Contractors facing uncertain economic outlook, says BCC
Contractors are facing an uncertain economic future with challenges ahead, according to the British Chambers of Commerce (BCC) Quarterly Economic Survey (QES). Although the manufacturing sector is still performing well, confidence is falling and input prices are increasing. This may actually benefit contractors in the sector as firms delay permanent hiring and recruit contractors instead. The services sector has an equally uncertain future and firms are suffering cashflow issues, suggesting contractors should strengthen their credit control approach. More…
Services and construction upturns result in more contract opportunities
Contractors in the service and construction sectors will have a greater number of contract opportunities to go for, despite other economic indicators pointing to uncertainty. The Chartered Institute of Purchasing and Supply (CIPS)/Markit Purchasing Managers’ Index (PMI) for both services and construction signalled renewed or ongoing growth, as well as increased recruitment. The services sector showed the strongest growth for 13 months and experienced a rise in employment for the first time in nine months. More…
Contractors on PAYE move one step closer to real-time information from HMRC
Contractors working via umbrella solutions providers or on agency payrolls, and who are paid under the Pay As You Earn (PAYE) scheme, are one step closer to having real-time tax information’ (RTI). HMRC’s objective is to run PAYE in real time, so contractors who move assignments and change tax codes frequently will always have up-to-date tax affairs. A pilot will begin in April 2012 and, if successful, the plan is that all employers will use RTI from October 2013. More…