IR35 victory for contractor Phil Winfield and Primary Path Ltd against HMRC
Contractor Phil Winfield has won his IR35 battle against HMRC, with a tax tribunal finding his company Primary Path to be genuinely in business. PCG, which supported Winfield’s case throughout, highlights the ‘pay-as-you-go’ relationship he had with client GSK as a key factor in the tribunal’s decision. This is the third high-profile IR35 case tribunal defeat for HMRC in as many months. More…
IT contractor rates are soaring as skills shortages emerge
IT contractors are reaping the benefits of a greater choice of contracts and increasing rates as organisations increase IT infrastructure investment. The Association of Professional Staffing Companies’ (APSCo) new Monthly Trends Report shows the surge in demand being driven by the financial, retail and media sectors. “We are seeing a significant increase in demand for IT professionals, with skills shortages in some areas now becoming widespread,” says APSCo Chief Executive Ann Swain. More…
Contracting is becoming the only option for many to improve living standards
Contracting may be the only way that many UK workers will be able to improve their earnings and standard of living. The Chartered Institute of Personnel and Development’s (CIPD) Jobs without Growth Conundrum report forecasts pay increases will remain well below inflation at 2% per year, compared to increases in living costs of 5% per year, resulting in falling standards of living for many. Conversely, contracting sectors such as IT and engineering are seeing rates increase, presenting opportunities for those with the right skills to move from permanent work to contracting. More…
IT contractors receive ‘conflicting opinions’ about the UK’s finance sector
IT contractors are receiving mixed messages about the health of the UK’s financial sector, which is one of the largest consumers of IT contractor services. The latest Morgan McKinley London Employment Monitor has decreased slightly compared to the same period last year: there were 2% fewer jobs in London’s financial sector in June 2011 compared to June 2010. However, month-on-month June had 6% more jobs than May. According to Morgan McKinley MD Andrew Evans, there is no clear pattern as the summer begins: “At the close of the second quarter of 2011 there were conflicting opinions about the health of the financial services jobs market.” More…
Contractor recruiters have vital role to play in public sector reform, says recruitment body
Contractor recruiters will play a vital role in the reforms of public sector service delivery, says Association of Recruitment Consultancies (ARC) Chairman Adrian Marlowe. Following the recent publication of the government’s public services white paper, Marlowe said “access to skills, flexibility of workforce, and overhead cost” will all become important factors in the reform of public services. More…
Oil and gas contractors will benefit from North Sea redevelopment
Oil and gas contractors can expect a stream of new North Sea contracts as energy giant BP and its partners commit to investing £3 billion in redeveloping fields west of the Shetland Isles. The project promises to be a bonanza for subsea specialists, as BP plans to upgrade and replace its subsea facilities in the field. However, the good news from BP is tempered by reports from BBC News that North Sea exploration is down by 50%. More…
Contractors will always be in demand, predicts Dave Chaplin
There will “always be a market” for contractors, predicts industry expert and ContractorCalculator CEO Dave Chaplin. Chaplin, quoted in an article on the TaxAssist Accountants’ website, also suggested that small firms need contractors to enable growth. “There are always going to be small firms … that need work doing which doesn’t justify someone working full time,” says Chaplin. More…
HMRC targets contractors for small sums whilst doing tax deals with big business
It won’t come as a surprise to many that contractors are still being targeted for investigations over relatively tiny sums, whilst at the same time HMRC is doing tax deals that appear to considerably reduce the tax burden of big business. In its review of HMRC’s 2011 accounts, the National Audit Office (NAO) has criticised HMRC’s policy of not clearly explaining in all cases why it did not pursue corporate taxpayers for fuller settlements. Because senior tax officials both negotiated and signed off on corporate cases, the NAO felt this “reduced the demonstrable assurance to taxpayers and Parliament that the settlements reached were appropriate.” More…
Contractor input sought on key income tax and NI merger plans
Contractors have been invited to give their views on the government’s plans for greater integration of income tax and National Insurance Contributions (NICs). Whilst this is not the full merger of the two taxes that could spell the demise of IR35, it is a step forward in simplifying the tax system and potentially cutting payroll administration costs for the contracting sector. Contractors have until 19 September 2011 to provide evidence and offer their views. More…
Contractor association PCG wins trade awards
Contractor association PCG has won two trade awards in recognition of the work it performs on behalf of its contractor membership and the contracting sector. The Trade Association Forum awarded PCG its award for Electronic Communication and Membership Success, beating organisations such as the British Insurance Brokers Association and the Agricultural Industries Confederation into the top spots. PCG was also shortlisted in the Sector Representation and Publication of the Year awards. More…