IR35 public sector changes pose questions for contractors
Contractors still have plenty of questions left unanswered after HMRC published its technical briefing detailing the upcoming public sector IR35 reform. In the document, HMRC provides details of guidance to be made available to support contractor clients, as well as instructions for calculating tax for contractors within IR35 and a new digital tool to help determine IR35 status. However, as ContractorCalculator CEO Dave Chaplin highlights, there are numerous oversights that stakeholders will be keen to query during the consultation. These include the absence of any mention of an appeals process and a lack of clarity over when a contractor’s IR35 status would be determined. More...
Contracting stakeholders give mixed response to OTS review
Contracting experts have responded to the Office of Tax Simplification’s (OTS) recommendations on simplifying taxation of limited company contractors and small businesses. Various new business structures were proposed by the OTS. However, Duncan Strike of Intouch raises concerns that this would have an adverse effect: “A new structure would require further choices to be made and would hence complicate matters further.” Meanwhile, Andy Chamberlain of the Association of Independent Professionals and the Self Employed (IPSE) raises questions over clients’ readiness to engage with new structures: “Guarantees need to be put in place to make the clients feel comfortable. Otherwise it won’t work.” More...
Oil and gas contractors have options as production projects start worldwide
Contractors in the UK’s oil and gas sector who are short on work should consider looking further afield for contract opportunities, as production projects around the world are said to be accelerating. Rigzone reports that the first quarter of the year has seen considerable increases in projects undertaken in Europe, the Middle East and Africa, with several additional projects in the latter two regions expected in the near future. Meanwhile, output in East Asia is expected to increase by the end of the year, with numerous projects in the pipeline. More...
Brexit could have negative repercussions for UK contractors
The UK must remain in the EU, or else contractors risk a significant reduction in the amount of overseas opportunities available to them. This is the warning from contractor management specialists CXC Global, whose analysis found that EU-based businesses might be less willing to engage with specialist UK contractors due to potential additional red tape if a Brexit were to occur. “The changes could also potentially lead to issues over eligibility and work permits which could mean the end client has to become more involved,” explains Jon Clarke of CXC Global. “This might negate one of the major advantages of employing a contractor.” More...
IT contractors enjoy widespread demand in the capital
IT contractors based in London are benefitting from a broad-based rise in demand as a growth in the number of technology companies compounds existing skills shortages. Morgan McKinley’s 2016 IT Salary Guide notes that there was a 30% increase in technology vacancies between 2010 and 2015, intensifying competition amongst recruiters. Large financial corporations are losing out to fintech startups, worsening the skills deficit, with front end development and software engineering professionals in particularly short supply. Meanwhile, contractors with cyber-security skills are said to be able to earn as much as £800 a day where a company’s security has already been breached. More...
Buy-to-let market activity accelerates ahead of SDLT introduction
Contractors have been active in the housing market in recent months, in an effort to secure purchases before the 3% increase on stamp duty land tax (SDLT) on the purchase of additional homes comes into play on 6 April 2016. Recent data released by HMRC indicates that 114,560 residential transactions were made in February 2016. This marks a 10.9% increase on January 2016, despite traditionally being a time when transaction rates tend to decline. The number of non-adjusted residential transactions was also 20.4% higher than in February 2015. More...
HMRC to fall short on offshore tax evasion pledge
Contractors with offshore bank accounts have received some welcome news as HMRC has conceded that its tax evasion crackdown is set to fall short, because it is too busy with its existing workload. Money Marketing reports that the taxman is set to raise £270m from its regime - £780m short of its £1.05bn target. “The wealthy are escaping the consequences of tax evasion because HMRC cannot pursue the cases,” notes tax barrister and QC Jolyon Maugham. More...
IT contractors benefit from sharp rise in security opportunities
UK contractors with cyber-security skills are benefitting from a surge in demand, which is expected to continue throughout the year, Staffing Industry reports. This is according to a study by recruiting contract finance provider Sonovate, which found that growth in contract security roles has grown by 19%, year-on-year, and is set to rise by another 30% by the end of 2016. Within security, consultants have seen the highest month-on-month demand (52%), followed by network security engineers (26%) and analysts (24%) respectively. “There’s a real appetite for high-quality contractors at the moment,” notes Sonovate co-CEO Richard Prime. More...
UK oil and gas contractor prospects to improve gradually
North Sea oil and gas contractors can look forward to a gradual recovery for the sector over the next five years, BBC News reports. The annual Scottish Enterprise survey reveals the UK oil and gas sector is set to grow by 4% by 2021. Meanwhile, as a result of the downturn in oil prices, 31% of firms are looking to increase their international focus. “It’s a challenging business environment but it’s a sign of strong resilience that businesses can look ahead and still see opportunities that exist around the globe,” highlights Aberdeen & Grampian Chamber of Commerce (AGCC) research and policy director James Bream. More...
Dutch contractor demand continues long-term growth trend
Demand for contractors in the Netherlands continues to show strong year-on-year growth. Staffing Industry reports the latest figures from the Dutch Federation of Private Employment Agencies (ABU) which show hours worked by contractors increased by 9% in period 2 (weeks 5-8), compared with the same period last year. Meanwhile, turnover grew by 10%. In the technical sector, whilst the number of hours worked only increased by 8%, turnover rose by 12%. In the industrial sector, the figures were 9% and 11% respectively. More...