HMRC generates £39.5bn through tax evasion and avoidance clampdown
Since the merger of HM Customs and the Inland Revenue in 2005, a ‘no mercy’ approach to compliance work has netted as estimated £39.5bn, according to research by accountant UHY Hacker Young. The figures show that enquiries into large businesses have given the greatest yield, of £12.,6bn. Contractors won’t be surprised to hear that that ‘the steep rise in extra tax acquired through compliance investigations is also partly a reflection of the increasing number of mistakes being made by taxpayers as the tax system grows ever more complicated’. More…
IT contract vacancies shoot up 54% in quarter
In its latest Skills in Demand report, the IT Job Board reveals that it is advertising 54% more contract positions than at the start of the year, a huge increase in demand for IT contractors. A range of specialist skills are in increasing demand, including IT security and .net roles. IT Job Board’s MD, Alex Farrell, sees this as “a real sign that the market is bouncing back”. More…
Web developers command rates 36% lower than a decade ago
Research from the Association of Professional Staffing Companies (APSCo) shows that web developer contractor rates have gone down in real terms since the dotcom boom from an average of £60 per hour to £40-£45 per hour now. Proliferation of off-the shelf solutions is blamed for the fall, as APSCo chief executive Ann Swain explains: “Back then companies had to build e-commerce and web applications from scratch. Now they can get most of these solutions off the shelf.” More…
Integrated ‘multi-channel’ lobbying strategy benefits contractors
As fears of a hung parliament rise, PCG’s policy strategy of the last 18 months – of engaging with all the main political parties at senior levels – is likely to pay dividends for contractors whichever party or coalition eventually wins the election. The strengthened policy team has secured commitment from the Conservative Party to review IR35 and from the Liberal Democrats to scrap IR35. A recent meeting with a Labour minister shows that door is open to discussion about contractor taxation, says PCG. More…
…and PCG clarifies Conservative Party IR35 position
Following press reports that an unnamed official at the Conservative Party cast doubt on its commitment to review IR35 as part of a wider review of all small business taxation and regulation including contractors, PCG has responded confirming the official line from Shadow Business Minister Mark Prisk. PCG Head of Public Affairs Simon McVicker says: “We are surprised that one email from an unnamed Conservative source questions the real progress made in a series of long and fruitful talks PCG has had with a Conservative team, led by senior frontbench spokesmen. The message we are getting, underlined in the recent statement from Shadow Business Minister Mark Prisk, is a much more positive one.” More…
Contractor clients experiencing ‘financial distress’
In its latest Red Flag update, business rescue and recovery specialist Begbies Traynor has classified over 160,000 UK firms as experiencing ‘significant’ or ‘critical’ financial distress, between them owing over £55bn to creditors and suppliers. Many of these businesses are contractor clients and, as creditors and suppliers, contractors are being used to extend their client’s credit lines. According to Executive Chairman Ric Traynor, court action is increasing as creditors seek payment, but this could backfire: “Trade creditors are increasingly seizing the opportunity to take action against their debtors in order to raise much needed working capital. This shift in behaviour heralds a new phase in the cycle, putting businesses experiencing financial problems at greater risk of failure.” More…
UK ‘Jobless recovery’ will create opportunities for contractors
The latest Manpower Employment Outlook Survey for the second quarter of 2010 says that employers uncertain of the future are likely to be slow to hire new employees. This could work in contractors’ favour, as organisations take on low-risk but highly skilled contract workers as a way to ‘keep things going’ while deferring permanent recruitment decisions. As Manpower UK’s Mark Cahill explains: “…employers are postponing hiring commitments until sustainable demand re-emerges, rather than engaging in anticipatory hiring. They are also implementing well-managed, complementary, flexible workforces, which is a prudent choice as they adjust to post-recession conditions.” More…
Recruiters now outnumber job cutters
In contrast to Manpower’s findings, the latest CIPD/KPMG quarterly survey paints an upbeat picture for contractors, revealing that the number of organisations hiring now outnumbers those firing for the first time since Winter 2008. It also highlights that the private sector is starting to take the lead over the public sector in job creation, which could be a cause for concern for some contractors with lucrative ongoing public sector contracts. More…