Cyber-security talent shortfall driving up IT contract rates
Cyber-security concerns and ongoing skills shortages are driving up contract rates in the IT sector, resulting in a contract-rich market. Computer Weekly reports that large firms are paying up to three times more to recover from a cyber-security incident as they recruit contractors to supplement in-house skills.
Improvement of specialist security expertise is high on the agenda for clients, with the Kaspersky Lab 2016 Corporate IT Security Risks survey identifying it as one of the top three drivers of investment in IT. With the contract sector accumulating a large share of this investment, contingent staff are advised to seek out opportunities now. More...
Latest tax avoidance crackdown ‘goes too far’
Tax advisers have spoken out against HMRC’s latest proposed tax avoidance crackdown, Accountancy Age reports. A recent consultation outlines plans to shift liability for outstanding tax from the contractor to the adviser if the taxman defeats them in court. However, experts have argued that the ambiguity of tax law unfairly places advisers at risk.
“The document lays out a definition of tax avoidance which is far too broad at present,” comments Fiona Fernie, head of tax investigations at Pinsent Masons. “The wording of the proposals suggests measures will cover schemes which have simply been the subject of a targeted avoidance-related rule.” More...
Construction and manufacturing contractors receive business boost
Construction and manufacturing contractor prospects have been boosted as both sectors look to be making a swift post-Brexit recovery, the Telegraph reports. A study by the Confederation of British Industry (CBI) shows that manufacturers’ export orders recorded the strongest growth in two years from July to August, thanks to the weakened exchange rate of the pound.
Meanwhile, housebuilder Persimmon reports a 17% increase in reservations over the past seven weeks, compared with the same time last year. Construction firm Kier has also won three contracts totalling more than £5bn, providing early indication that construction work may continue unabated following the Brexit vote. More...
Contractors need more clarity over digital tax plans
HMRC has been urged to provide more information and clarity over its ‘Making Tax Digital’ regime after it was found that 43% of UK contractors and small businesses are still unaware of the tax digitisation plans. A survey conducted by contractor accountancy firm FreeAgent found that 86% of respondents who were aware of the changes have not received enough information about how the proposals will affect their business.
Last week, HMRC released a series of consultation documents on the campaign, which FreeAgent chief executive Ed Molyneux referred to as “a step in the right direction”, but insisted there is still a lot of work to be done. More...
PwC recruitment drive signals potential contract opportunities
Soaring demand for digital and cyber-security expertise has seen PwC announce a recruitment drive that could source multiple UK contract opportunities. Accountancy Age reports that the professional services firm has announced plans to hire more than 1,000 IT specialists over the next four years to meet increasing client demand.
“Our new technology specialists will span from associates to partners and will consist of over 600 external hires, over 400 transfers from around PwC’s international network and over 200 cyber-security, data and technology graduate recruits,” explains Hemione Hudson, PwC’s UK head of assurance, issuing a notice to contractors with the relevant expertise. More...
Construction contractors hit by growing waits for payment
Construction contractors are the worst affected by the growing late payment problem in the UK, new research from the Asset Based Finance Association (ABFA) has shown. Whilst UK businesses on average face a wait of 61 days to receive payment from clients, for construction firms the delay is 82 days.
This is a result of a 22% increase over the past year, a rise which has also led to the high number of insolvencies in the sector. “Long supply chains in construction mean the ripple effect of delays is likely to affect many other businesses further down,” notes ABFA chief executive Jeff Longhurst. More...
Tax planning won’t be considered avoidance, insists HMRC
HMRC has moved to quell fears from tax advisers that legitimate tax planning strategies will be considered tax avoidance in its latest crackdown, FT Adviser reports. Recently published proposals could see advisers forced to pay a penalty of up to 100% of the tax owed to HMRC if it’s found that they oversaw a client engaging in tax avoidance.
Following arguments from advisers about tax avoidance falling into a grey area between tax evasion and planning, a HMRC spokesperson clarified: “Tax avoidance is bending the rules of the tax system to gain a tax advantage. It involves operating within the letter – but not the spirit – of the law.” More...
Clients look to digital talent platforms to hire contractors
Contractor clients are increasingly using digital talent platforms to source contingent staff, a study has shown. New research by the Recruitment and Employment Confederation (REC) found that 31% of respondents have used freelancing platforms over the past 12 months, whilst 29% said they would play a more important role in their organisations over the next five years.
As REC chief executive Kevin Green explains, the benefits are mutual: “They give SMEs access to the global skills market for the first time. Workers can work flexibly and are in charge of their own pricing mechanisms.” More...
Brexit negotiations remain vital to oil and gas contractor prospects
The UK oil and gas sector has called on the Government to not take its “eye off the ball” during Brexit negotiations or risk losing the industry altogether, Energy Voice reports. At a roundtable discussion with Scottish Secretary David Mundell, oil and gas leaders stressed the importance of the negotiations on the survival of the sector.
Speaking at Westminster, Mundell relayed these concerns: “The message they have is – we don’t want to be in a position where there isn’t an industry in three years’ time. Where you might have a perfect Brexit settlement, but we won’t be here to take advantage of it.” More...
HMRC promises online tax refund facility to contractors
If you’re a contractor with a personal tax account you can now apply online for a refund of overpaid tax and receive payment within three to five days, Accountancy Live reports. This is the latest feature announced as part of HMRC’s ‘Making Tax Digital’ regime, which the taxman claims currently has over 3.5m active users.
“They [customers] can claim at a time that suits them, from a device of their choice, securely, and without needing to wait for a cheque in the post,” explains HMRC director general of customer service Ruth Owen. More...