Contractor hiring at 20-month high and accelerating, says KPMG/REC Report on Jobs
Contractor billings reached a 20-month high during November 2012, with growth “beginning to look like an accelerating trend,” according to Recruitment and Employment Confederation (REC) chief executive Kevin Green. “Employer confidence is genuinely bouncing back, with businesses feeling more encouraged to hire, which bodes well for the New Year,” he adds. Engineers are the best performing core contracting sector and accounting/finance is back in growth territory for the first time this year. More...
Engineering contractors most in-demand workers online
Online demand for engineering contractors surged by 8.3% during November 2012 compared to the previous month, the highest performing sector of the month and the second highest year-on-year, at 16%. November’s Monster Employment Index reports that public sector hiring online tops the year-on-year demand league table, showing considerable growth of 42% since November 2011. IT contractors fared less well in November, with online demand falling by 3%. More...
Financial IT contractor hiring forecast to improve in 2013
Financial IT contractors, and contractors in the finance and business services sector generally, will enjoy increased hiring in the first quarter of 2013. The Manpower Employment Outlook Survey is predicting the strongest levels of hiring since before the recession. ManpowerGroup UK managing director Mark Cahill welcomes the positive news, but warns that the UK labour market is fundamentally changing. “There has been a seismic shift in the nature of employment with many of the new roles created being temporary or part-time positions,” he explains. “If you want to get ahead in the 2013 jobs market, you need to accept this as the new reality.” More...
Oil and gas contractors’ North Sea future secured by new Decommissioning Relief Deed
Oil and gas contractors will continue to enjoy a vibrant contract market in the UK Continental Shelf (UKCS) following a landmark agreement over decommissioning between the government and oil and gas licensees. According to energy industry body Oil & Gas UK, the Decommissioning Relief Deed will provide certainty about the tax relief available on decommissioning costs. The result will be significant investment into UKCS production and decommissioning, extending the life of many older fields and generating a stream of ongoing contracts.
Construction contractor fortunes may slowly improve during 2013
Construction contractors may see a gradual uplift of contract opportunities during 2013. The latest Savills Commercial Development Activity still shows the UK’s construction sector to be at rock bottom, but suggests that the government funds forecast for 2013 will “result in improved activity”. Commercial construction activity rose during November, driven by ongoing private sector activity as public sector spending fell. Commercial developers are optimistic about their prospects over the coming quarter, but confidence is fragile.
Self-employment falls for the first time in 12 months
Self-employment fell during August to October 2012 for the first time since November 2011. Having reached a historic high of 4.223m in the May to July quarter, numbers have fallen by 23,000 to reach 4.2m. Full-timers reduced by 7,000, whereas part-timers fell by 15,000. Overall, unemployment fell by 80,000 between August and November, prompting the REC’s chief executive Kevin Green to comment: “Demand is outstripping supply for workers with certain skills like IT, engineering, care work and sales. All our data suggests that employer confidence is genuinely bouncing back, with businesses feeling more encouraged to hire, which bodes well for 2013.” More...
Office holding contractors to lose IR35 exemption: Finance Bill 2013
Contractors working on assignments on which they are classed as ‘office holders’ will lose their current exemption from the income tax provisions of IR35. The new measures will be introduced in April 2013 as part of the Finance Bill 2013, which has been published by the Treasury to allow for consultation before it becomes law. Genuine mainstream contractors will not be affected by the change, and it is only likely to apply to very senior interim managers in the public and private sectors. More...
Contractors will feel the impact of the new General-Anti Abuse Rule from July 2013
Contractors will be subject to the new General Anti-Abuse Rule (GAAR) from July 2013, when the Finance Bill 2013 containing the new legislation is expected to receive Royal Assent and become law. According to Richard Crump, writing for Accountancy Age, the draft legislation has clarified when the GAAR will and will not apply, with HMRC providing detailed guidance. Contractors using contrived and ‘aggressive’ tax avoidance schemes may find their tax affairs under greater scrutiny once the GAAR becomes law. More...
Contractor pension loophole closed by draft Finance Bill 2013
Contractors hoping to circumvent the £40,000 cap on pension contributions tax relief announced in the Autumn Statement have had their hopes dashed by forestalling measures published in the Finance Bill 2013. In its analysis of the draft legislation, the Chartered Institute of Taxation (CIOT) highlights the Treasury’s move to prevent contractors making pension contributions on behalf of a family member to avoid the tax relief cap. The CIOT also identifies over ninety measures in the Finance Bill that it believes may have been missed by commentators.