Contractors to benefit from OTS recommendations, following government response
Contractors look set to benefit from a raft of recommendations made by the Office of Tax Simplification (OTS), following the government’s response that has accepted, or will consider, the vast majority of OTS proposals. The measures include merging income tax and National Insurance Contributions (NICs), creating tax accounts for small businesses to better manage their tax and committing to provide greater tax certainty for small businesses like contractor limited companies. More...
Umbrella company contractors no closer to understanding government plans
Umbrella company contractors are still in the dark about the government’s planed consultation about the use of umbrella companies that was announced in the Autumn Statement 2014. The draft legislation for the Finance Bill 2015 contained no clues about government next steps, prompting Parasol founder and chief executive Rob Crossland to note that: “We look forward to finding out more about the government’s proposals. The forthcoming discussion paper and consultation represent a rare opportunity to educate policymakers on the nuances and realities of the professional contractor employment services sector.” More...
Contracting market softens as yearend approaches
Contractors in some disciplines may experience a softening of the contract market as the final quarter of 2014 approaches, suggests November 2014’s Recruitment and Employment Confederation (REC)/KPMG Report on Jobs. However, the report also highlights that contractors in key skills areas such as IT and engineering can expect demand for their services to be sustained, and that skills shortages are reaching dangerous levels. More...
Financial IT, finance and banking contractor prospects for 2015 look positive
Financial IT contractors and contractors with banking and finance skills can expect demand and rates to increase during 2015, according to Michael Page’s 2015 annual Banking & Financial Services Salary Survey. The survey provides a detailed breakdown of each specific subsector within the finance and banking industry with an evaluation of prospects, suggesting where contractors should focus their efforts to find new contracts in the New Year. “Despite increased pressure within the banking and financial services industry, business attitudes remain fundamentally optimistic and 2015 looks positive in terms of the hiring market,” notes Andrew Breach, Head of Page Executive’s newly launched Banking and Financial Services Practice. More...
Contractor clients predicted to go on hiring spree in 2015, reaching 10-year highs
The level of contracting client hiring is forecast to reach ten-year highs during 2015, as large firms start to invest cash piles accumulated during the recession. The Manpower Employment Outlook Survey (MEOS) for the first quarter of 2015 shows that energy and construction will be two of the largest recruiters, sending a positive message about future prospects to engineering and construction contractors. “Energy companies are investing
significantly in the UK, which is set to have a positive effect on the jobs market next year,” says Mark Cahill, ManpowerGroup UK Managing Director. More...
Contractors in the firing line for HMRC’s VAT compliance campaign
Contractors and other small businesses are the targets of HMRC’s ongoing VAT compliance work. Economia’s Oliver Griffin writes that data from accountant UHY Hacker Young shows: “Compliance investigations by HMRC took £3.9bn in extra VAT from SMEs – up 10% on the previous year’s £3.6bn.” Griffin adds that “this level is almost doubled since the 2010-2011 tax year, which saw £2.2bn taken from SMEs”. Contractors should ensure that their VAT processes and records are accurate and complete in case a VAT inspector targets their limited company for a compliance visit. More...
Oil and gas contractors needed in areas such as geosciences, drilling and safety
Oil and gas contractors remain in high demand in industry sectors facing skills shortages such as the geosciences, drilling and safety. This is despite a forecast 35,000 fall in the number of contracts and jobs supported by the UK oil and gas sector by 2019, and a focus on hiring permanent employees. These predications can be found in Fuelling the next generation, a new report by EY that has been commissioned by Oil & Gas UK, sector skills organisation OPITO and the Department for Business, Innovation & Skills. More...
IT and engineering contractor demand “lead the way in jobs boom”
IT and engineering contractor demand “lead the way” in a contract and jobs boom that has seen vacancies for professional talent increase by 27% over the past 12 months. New survey data from the Association of Professional Staffing Agencies (APSCo) shows that growth in IT contractor demand “can be credited to a booming ‘app economy’ which has created an ongoing demand for developers and programmers”, and “Looking more closely at the engineering sector, much of the jobs growth has been around the ongoing investment in infrastructure projects”. More...
Locums and legal contractors in HMRC’s sights for its latest targeted campaigns
Locum social workers and solicitors are the latest professions to be targeted by HMRC for a dedicated compliance campaign. According to CommunityCare’s Tristan Donovan, locum social workers are being targeted for IR35 compliance, as HMRC believes that the level of control exerted on a typical social worker by managers means they are ‘controlled’, and therefore caught by IR35. Solicitors are the target of a new ‘spotlight’ campaign, and have until 9 March 2015 to voluntarily disclose to HMRC any tax irregularities. Doctors, dentists and other professionals have been similarly targeted. More...
Oil and gas contractors receive new tax guidance from HMRC
Oil and gas contractors working on offshore installations or on pipe-laying and survey vessels can access new online guidance from HMRC about their income tax and National Insurance Contributions (NICs) obligations. The guidance covers employees of UK companies, so will apply to both limited company and umbrella company contractors. Contractors with complex arrangements are advised to contact their accountant, or HMRC. More...