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ContractorCalculator: Contracting news in brief – 27/May/2016

Oil and gas contractors offer solution to skills shortage concern

Oil and gas contractors in the North Sea have been given some positive indications that prospects may improve. Despite an overall negative sentiment, the Aberdeen & Grampian Chamber of Commerce’s (AGCC) 24th Oil and Gas Survey highlights decommissioning and renewable energy as potential sources of future contracts. Meanwhile, 50% of survey respondents flagged up skills shortages as an issue currently constraining business. With firms dedicating less investment to staff training and research and development, contractors are well placed to capitalise on potential rising contingent demand over the long term. More...

Construction contractor demand rises despite recruitment crisis

Contractor demand in the construction sector is rising, despite growing concerns over skills shortages. This is according to a survey of construction recruitment firms by the Recruitment and Employment Confederation (REC) which reveals that 63% of agencies have seen an increase in contractor vacancies over the past year. At the same time, 69% say that the shortage of skilled tradesmen is either the first or second most significant risk to their business, whilst 59% believe a Brexit would intensify the talent shortfall. “Whatever the outcome of the EU referendum we need to address deep-seated skills shortages,” comments REC chief executive Kevin Green. More...

Oil and gas contractors on alert as firm announces recruitment drive

Contractors in the oil and gas sector are to benefit after an Aberdeen-based recruitment company announced a recruitment drive, Oil and Gas People reports. Following a series of contract wins in the UK, Middle East and Asia, Chronos Oil and Gas is looking to fill 1,000 positions until the end of 2017. “We are delighted to be able to report some good news with regards to jobs after 24 months of nothing but job losses hitting the headlines,” comments Oil and Gas People managing director Kevin Forbes. Interested candidates are advised to register and upload their CV to the Chronos website. More...

Buy-to-let activity suffers as a result of stamp duty tax hikes

Buy-to-let activity amongst contractors has seen a sharp decline as a result of the recently implemented increase in stamp duty land tax (SDLT) for landlords and buyers of second homes. BBC News reports HMRC figures which show that, following the record high 164,400 transactions in March, the number of UK properties sold fell by 45% to 94,370 in April. This also marks a 14.5% decrease when compared with April 2015. In April 2016, contractors were subject to an additional 3% to existing SDLT rates for any additional residential property. More...

Contracting stakeholders echo concerns about Government contractor use

Contracting stakeholders have spoken out in support of concerns raised by the Public Accounts Committee (PAC) that large firms hold a major advantage over contractors and SMEs when bidding for Government contracts. Last week, a PAC report concluded that it isn’t clear as to whether contractors and SMEs are acquiring any more Government business than before. Managing director of TEAM (The Employment Agents Movement) Liz Longman claims its members have raised concerns that they aren’t big enough to bid for larger contracts: “Members would be keen to work together in tendering for contracts but the barrier is always that the leading agency is not big enough.” More...

Contractors and SMEs risk being turned down by banks to reduce regulatory burden

Contractors and small businesses are at risk as British banks become increasingly willing to scrap the accounts of smaller customers. The Telegraph cites a study by John Howell & Co which suggests that regulatory pressures brought on by crackdowns on money laundering and corruption mean banks have had to deal with rising regulatory compliance demands and costs. As a result, customers who are considered too small to be worth assessing for financial crime risks are finding themselves being turned away, with the report noting that two large banks are together closing roughly 1,000 personal and 600 business accounts per month for ‘risk appetite’-type reasons. More...

Contractors bear brunt of HMRC headcount cuts

Contractors and other taxpayers seeking advice from HMRC’s customer service collectively accumulated £66m in call costs whilst waiting on the phone to speak to an advisor in 2015-16, the Guardian reports. This is according to a new report from the National Audit Office (NAO) which shows that for every £1 reduction in HMRC’s annual transaction costs there has been roughly a £4 increase in the time and money spent by customers. “This report is crystal clear that cutting thousands of jobs in HMRC damaged the service,” notes Mark Serwotka, Public and Commercial Services union general secretary. More...

Oil and gas opportunities to arise from fracking vote

Oil and gas contractor opportunities look likely to materialise after local councillors in North Yorkshire voted to allow gas exploration company Third Energy to begin fracking near the village of Kirby Misperton. Recruiter reports that this is the first fracking application to have been approved in five years, with various contractor recruiters announcing their interest in sourcing staff for vacant positions. “The skills exist – the same people are required. There are technical challenges that are particular to onshore and to hydraulic,” notes Andrew Speers, chief executive at energy recruiters Petroplan. More...

Contractors shouldn’t be included in apprenticeship levy, industry leaders claim

Contractors shouldn’t be factored into consideration when determining how much firms contribute towards the apprenticeship levy, industry leaders have warned. Due to come into force in April 2017, the levy will fund 3 million new apprenticeships by charging UK employers with an annual pay bill of at least £3m 0.5% of their payroll expenses. However, in an open letter to the Chancellor, the Recruitment and Employment Confederation (REC) claims that including contingent staff in the levy “will generate an inherent unfairness”. Further, it warns that the move may see more firms looking to move workers off-payroll, a feature that HMRC has been working hard to minimise. More...

HMRC announces Verify authentication service is ‘almost there’

Contractors will soon be required to prove their identity to access HMRC online services and other Government digital platforms, reports Accountancy Age. In a recent Government blog post, Government Digital Services (GDS) identity assurance programme director Janet Hughes confirmed the Verify service is in its final steps of completion and will soon become a permanent fixture across Government. The changes will mean contractors will need to use Verify to sign into their online personal tax accounts and to complete their self-assessment tax returns amongst other online services. More...

Published: Friday, 27 May 2016

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