Umbrella contractors may face tighter expenses regulation from April
Contractors are likely see tougher rules on expenses, which may lead to ‘round sum’ expenses claims without receipts being banned in the 2013 Budget.This is according to professional employment organisation Parasol, which is rolling out new expenses procedures in anticipation of possible changes. “We know government is targeting the contracting industry and we feel it’s only a matter of time before all round sum allowances are removed,” Parasol managing director Derek Kelly said in an interview with ContractorCalculator. More...
Oil and gas contractors to benefit from up to 50,000 new North Sea contracts and jobs
Oil and gas contractors look set to experience a North Sea boom in jobs and contracts, with an estimated 40,000 to 50,000 new roles forecast as major projects come on stream over the next few years. Specialist recruiter Oilandgaspeople.com warns of “continuing skills shortages with a rise in the need for qualified and experienced staff.” Combined, these two factors bode well for a booming North Sea contract markets. According to Oilandgaspeople.com’s Kevin Forbes, skills shortages are exacerbated as workers are lured abroad: “UK candidates head abroad to earn even higher wages with a huge demand for qualified expats globally.” This could point to increasing day rates to persuade contractors to stay in the ‘home’ market.
Construction contractors facing “10 more years of pain” before sector recovers
Construction contractors are experiencing one of the “most difficult periods since the Second World War and the prospects are for 10 more years of pain.” This is the conclusion of the Construction Skills Network report, published by construction sector skills council CITB-ConstructionSkills. The industry is not forecast to reach its 2007 peak before 2022. And until 2017, only Greater London and the East of England are expected to see active hiring growth. More...
Downturn in contractor demand during December, but strong year-on-year growth
Demand for contractors in IT and engineering experienced a slight downturn during December 2012, falling 4% and 6% respectively. But according to December 2012’s Reed Job Index, year-on-year growth in demand for engineering and IT contractors has increased by 9% in both sectors, suggesting December’s figures are a seasonal blip. Reed.co.uk marketing director Mark Rhodes is confident about the year ahead: “There will undoubtedly continue to be bumps along the way, but 2013 promises to be another year of continued recovery.” More...
Contractor AWR solution confirmed as Swedish Derogation withstands legal challenge
Umbrella company and agency payroll contractors choosing the Swedish Derogation as a solution to remaining outside key provisions of the Agency Workers Regulations (AWR) received a boost in October 2012. Law firm Brabners Chaffe Street successfully defended an agency client that had received multiple claims from its temps that it had not complied with all the requirements of the Swedish Derogation. “This case is one of the first which addresses the effectiveness of the ‘Swedish derogation’ and is particularly important for businesses operating in the recruitment sector who wish to rely on it,” explains Brabners Chaffe Street employment partner, Paul Chamberlain. More...
Contractors using Swedish derogation are ‘morally wrong’, claims unions
Contractors using the Swedish Derogation and pay-between-assignments models to avoid the equal pay provisions of the Agency Workers Regulations (AWR) have been likened to tax avoiders whose actions are ‘morally wrong’. In a Telegraph report by Louisa Peacock, CWU general secretary Billy Hayes claims: “These [Swedish Derogation and pay-between-assignments] contracts are legal, but in the same way that the legal tax arrangements of Starbucks, Amazon and many celebrities are morally wrong, we believe these contracts fly in the face of fairness.” More...
Marketing contractor prospects will improve in 2013
Marketing contractors experienced the first increase in marketing budgets in three quarters, and 2013 marketing budgets look set to grow as companies are more optimistic about their prospects. The Institute of Practitioners in Advertising (IPA) Bellwether Report 2012 Q4 also shows that internet advertising is underpinning growth across the sector. “Companies have grown more positive about their financial prospects,” says Bellwether author and Markit chief economist Chris Williamson, “setting marketing budgets higher for the coming year to help beat a challenging business environment.”
Contractors earning over £150,000 face higher risk of investigation
Contractors earning over £150,000 and with a net worth of £1m or more have an increased chance that their tax affairs will be scrutinised by HMRC. This follows HMRC’s decision to hire an additional 100 tax inspectors for its Affluent Compliance Team. “In September 2012, the government announced an additional investment of £5 million, enabling us to recruit an extra 100 inspectors,” explains Roger Atkinson, director of the Affluent Teams. “We will recruit from within HMRC and externally and the new team will be fully operational by April [2013] and focused on delivering an additional £75 million a year.”
Contractors participating in partnership reliefs schemes offered settlement by HMRC
Contractors who have invested cash into tax avoidance schemes utilising partnership reliefs and allowances have been offered an opportunity to settle by HMRC. The taxman has written to individual taxpayers using such schemes suggesting that HMRC is prepared to do a deal with them, regardless of what other scheme participants and promoters do.