Contractors to have a say about policy ideas at IPSE conference
Contractors, politicians and business leaders will gather when the Association of Independent Professionals and the Self Employed (IPSE) hosts its new policy conference on 26 April 2016. The event will be used as a platform to debate ways in which the government can support and enhance the flexible workforce’s growing contribution to the economy. Contractors will also be able to discuss policy ideas and voice their views on the looming EU referendum. “We’re excited to discuss some really interesting, innovative measures at the conference,” notes IPSE Head of Press and PR James Gribben. More...
Contractors have little time to act before pension reforms
Contractors have only until the end of the tax year to take advantage of pensions tax relief before the Government introduces what experts anticipate will be draconian restrictions in March’s 2016 Budget. The withdrawal of tax relief could reduce pension values by as much as 17%, leaving contractors with retirement incomes lowered by 7%. “Contractors with underfunded pensions or large cash savings in their company have only weeks to make tax-efficient contributions,” notes pensions and investments expert, who warns the impending restrictions look likely to come into immediate effect. More...
Finance and IT contractors help make UK a leading FinTech capital
Contractors in the finance and IT sectors are contributing to the UK’s standing as the leading global hub for financial technology. A recent Government report, ‘UK FinTech: On the cutting edge’, analyses FinTech hubs based on four factors: access to skilled talent; investment in FinTech; Government and regulatory policy; and demand. It is estimated that the UK’s FinTech sector represented £6.6bn in revenue in 2015. This has partly been attributed to the nation’s “exceptional access to financial expertise”. However, concerns over future skills shortages are noted, with stakeholders identifying the need to develop a healthier pipeline of talent. More...
Limited company contractor tax codes changed by HMRC
Contractors working through their own limited companies are finding out that HMRC has amended their tax codes in a bid to retrieve dividend tax payments sooner, AccountingWEB reports. The dividend tax changes come into effect on 6 April 2016. Under self-assessment, any dividend tax due for the 2016/17 tax year would be payable by 31 January 2018, as the balancing payment for that tax year. However, many limited company contractors are receiving altered tax codes which will result in the deduction of an estimated amount, deemed to be approximate to the dividend tax due for the year. More...
Contractor clients unable to compensate for T&S changes
The majority of contractors affected by travel and subsistence (T&S) expenses relief changes won’t be compensated by their end engager, Response Source reports. Research conducted by numerous trade bodies – including the Freelancer and Contractor Service Association – shows that 92% of contractor clients will not be reimbursing contractors for their financial loss. “It is clear that UK plc does not currently have the bandwidth to absorb the significant cost implications of this legislative ruling,” explains CEO Julia Kermode. Meanwhile, 79% of clients who plan to keep rates static are concerned their decision will be detrimental to workforce flexibility. More...
Oil and gas contractor decommissioning opportunities arise from sector decline
Contractors in the oil and gas sector are to experience an acceleration in terms of decommissioning opportunities as an increasing amount of projects are deemed uncommercial. Oil & Gas UK’s 2016 Activity Survey reports that the number of oil fields expected to cease production between 2015 and 2020 has risen by a fifth to over 100. Meanwhile, the industry is making strides to improve efficiency, reducing costs by 40% whilst increasing production. However, there remains little scope for further drilling opportunities, as exploration outlook remains at an all-time low. More...
Contractor AWR rights at risk if UK leaves EU
Umbrella company contractors could be at risk of losing their Agency Workers Regulations (AWR) rights if the UK decides to leave the EU, employment lawyers have warned. Recruiter reports that a Brexit could result in the unravelling of European legislation implemented in the UK. This could include AWR, originally an EU directive that gives temporary umbrella contractors equal rights to permanent employees in terms of pay, holiday leave and other benefits after a qualifying period of 12 weeks. PM David Cameron has announced the EU referendum will take place on 23 June 2016. More...
Contractors increasingly targeted by HMRC tax investigations
Contractors and other high-earning tax-payers are being increasingly targeted by HMRC in its investigations into tax compliance, which have yielded a “dramatic” increase in annual revenue. Out-Law reports that the tax take by HMRC’s High Net Worth unit rose from £268m in tax year 2013/14 to £414m in 2014/15. Tax investigations expert Fiona Fernie of law firm Pinsent Masons attributes the increased return in part to the taxman’s “liberal” use of its powers to demand disputed tax up front from contractors. HMRC recently announced it had collected more than £2bn in tax payments from its accelerated payment notice (APN) regime. More...
IT security contractors high on clients’ agenda
IT contractors with cyber-security skills can expect to see substantial demand for their services over the course of 2016. The Security and Resilience Market Report 2016 by Barclay Simpson notes that demand for security professionals is rising, with 54% of firms expecting to add contractors to their cyber-security departments – an increase of 6%, compared with the year before. A growing emphasis within the sector on cloud technology and the Internet of Things (IoT) is believed to be a large driver behind the rise in contractor recruitment. More...
Oil and gas contractor rates slashed by services firm amidst efficiency challenges
Oil and gas services firm Wood Group PSN has reduced the rates of approximately a third of its UK-based limited company contractor workforce by an average of 9%. Your Oil and Gas News reports that the adjustment has come in response to continuing cost and efficiency challenges affecting the North Sea sector. “We highly value our contractors and this measure will allow us to sustain our relationship with these talented people, whilst taking appropriate measures to improve efficiency and reduce costs for our customers,” highlights WGPSN managing director James Crawford. More...