Contractor availability continues to decline, impacting on key infrastructure projects
Contractor candidate shortages worsened during September 2015, with skills shortages in the engineering and construction sectors prompting concerns over major infrastructure and housebuilding projects. Meanwhile, billing growth slumped to a 28-month low. This is according to the latest Recruitment and Employment Confederation (REC) and KPMG Report on Jobs which suggests a contract-rich environment for those looking for temporary work. “Contractors who are having difficulty finding contracts may need to look further afield, as the demand for their services exists if there are available candidates for agencies and clients to hire,” notes ContractorCalculator CEO Dave Chaplin. More...
ContractorCalculator’s response to HMRC’s IR35 discussion document
ContractorCalculator has responded to HMRC’s Intermediaries Legislation (IR35) discussion document, by arguing that IR35 is no longer fit for purpose or relevant in today’s labour market. So far, the taxman has failed to bring in the £430m it believes that IR35 should be generating in additional taxes each year, and it is not likely to as the disguised employees IR35 is designed to catch simply don’t exist in great numbers. The dividend tax is a game changer that contributes to IR35’s irrelevance. More...
IT contractor tax avoidance scheme defeated in court by HMRC
An IT contractor tax avoidance scheme that reduced income tax rates to less than 5% has been beaten at tribunal by HMRC, who are now set to pocket £200m, reports International Adviser. More than 2,000 people signed up to the Isle of Man-based scheme which took advantage of a double taxation agreement (DTA). The DTA meant contractors could register as an Isle of Man enterprise, which meant they were not subject to tax unless they engaged in trade or business on a permanent basis in the UK. Contractors using similar schemes can now expect to receive follower notices from HMRC demanding the tax they saved by using the scheme. More...
Contractors to lose 20% of earnings from travel and subsistence relief changes
Contractors are set to suffer an estimated 20% shortfall in take-home pay with the introduction of HMRC’s proposed changes to travel and subsistence relief, contractor trade body organisation Prism has warned. Research among members also suggests that clients would need to spend 25% more on contractors to maintain rates of take-home pay, rounding up to a total cost to clients of £6.9bn. “The taxman is going to war on temporary workers and contractors,” warns Prism CEO Crawford Temple. “The most flexible part of our workforce will become the worst off with the fewer benefits and the least protection.” More...
Construction contractor outlook positive due to growth in business activity
Contractors experienced little change in terms of future prospects, as the Purchasing Managers’ Indexes (PMIs) for September 2015 from Markit and the Chartered Institute of Purchasing and Supply (CIPS) show. The outlook looks positive for construction contractors, with increased output and demand, while the services and manufacturing sectors remained largely stagnant, although still in growth territory:
- The UK Manufacturing PMI reports a marginal decrease in staffing levels during September, despite a slight upturn in output growth which exceeded expectation. Overall, the industry remains largely stagnant, although headcounts in the consumer goods sector rose. “The sector appears to be sidestepping any significant growth this month and offering little in the way of an upbeat performance.”
- In contrast, “Construction firms enjoyed a strong finish to the third quarter of 2015” as job creation reached a three month high in September, due in large part to an acceleration in output, reports the UK Construction PMI. Looking ahead, 52% of respondents forecast a further upturn in business activity over the next 12 months. While employment growth continued for the 28th successive month, sub-contractor charges continued to rise sharply due to high demand.
- The UK Services PMI revealed continued business growth for the 33rd successive month throughout September. However, it did so at the weakest rate in nearly two-and-a-half years, meaning the quarter leading up to September was the weakest since Q2 2013. Contrary to this, headcounts – and new contracts - in the sector continued to rise at a significant rate.
IT contractors to benefit from private sector opportunities
IT contractors look set to benefit from greater demand for their services in the private sector as a result of investment, while austerity measures have restricted opportunities in the public sector, reports Staffing Industry Analysts. This is according to research by contractor umbrella company giant group, whose contractor database found that professionals are anticipating significant growth in private sector opportunities over the next twelve months. “It appears as if the [public sector] slack has been well and truly taken up by the private sector with professionals reporting greater opportunities in sectors including transport, leisure and telecoms,” highlights Matthew Brown, Managing Director of giant group. More...
Contractor collaboration required to maximise North Sea value, says survey
Contractors and firms within the UK’s oil and gas sector aren’t taking full advantage of the potential value of the UK Continental Shelf (UKCS) as a result of insufficient supply chain collaboration, reports Rigzone. This is according to a survey from Deloitte which found that, whilst 74% of respondents considered collaboration to be an integral part of business, only 20% claimed to actively seek out collaboration opportunities. “The industry needs to address a number of practical, cultural and behavioural barriers that are standing in the way of realising this successful future,” notes Nick Clark of Deloitte. More...
Contractor organisations support Conservative infrastructure announcement
Contractor organisations have welcomed the announcement of a National Infrastructure Commission, made by Chancellor George Osborne during his speech at the Conservative Party Conference. “We called for a Commission in our Manifesto ahead of the General Election as we believe poor infrastructure is one of the biggest challenges highly mobile workers face,” highlights Policy Director for the Association of Independent Professionals and the Self Employed (IPSE) Simon McVicker, who also expressed disappointment that Osborne didn’t address other pressing issues such as simplifying the tax system and bringing down the cost of doing business. More...