Contractor witch hunt in NHS continues: PCG defends limited company contractors
Contractors working in the public sector continue to be targeted by the media, as a recent MailOnline article shows. But PCG has spoken out and defended the use of contractors by public sector organisations, warning that vital projects are at risk if contractors are forced out. “To suggest every person operating under a personal service company for more than six months is doing so illegitimately shows a fundamental lack of understanding of how projects are delivered to large organisations,” says PCG CEO Chris Bryce. More...
Contractors using compliant umbrellas unaffected by European ruling
Contractors who are using compliant umbrella companies should remain unaffected by the Court of Justice of the European Union (CJEU) ruling that commission should be included in holiday pay. Parasol managing direct Derek Kelly says: “At Parasol we have been paying commission on our contractor employees' holiday pay for many years, and continue to do so. The ruling will therefore have no impact on either us or our employees. Any genuinely compliant professional employment organisation (PEO) or umbrella company will pay commission on holiday pay.” More...
IT contractors should acquire digital skills to drive revenue growth
IT contractors looking for the next growth area should focus on acquiring digital skills that generate revenues, says the 16th Harvey Nash CIO Survey. This shift in emphasis away from projects that generate cost savings and operational efficiencies is just one of the survey’s findings. It also identifies a new kind of client, the chief digital officer, and warns of worsening skills shortages holding back digital strategies. More...
Contractor hiring increases in UK services sector
Contractor hiring has increased across the UK’s service sector, with the business and professional services sector, where most contractors work, experiencing the fastest growth in new business volumes since 2006. This is according to the Confederation of British Industry’s (CBI) quarterly Service Sector Survey, which also shows business optimism rising at its fastest pace since the survey began in 1998. More...
Strong oil and gas contractor prospects, despite dip in confidence
Oil and gas contractor prospects remain strong, despite a slight dip in the UK industry’s confidence during the first quarter of 2014. The Oil & Gas UK Business Sentiment Index shows that confidence remains firmly in positive territory, despite low levels of drilling, cost pressures and the tight labour market. Oil & Gas UK’s operations director Oonagh Werngren remains upbeat: “If the current rate of investment is sustained, we believe that there is real hope for the long-term future of this industry.”More...
Oil and gas contractors to benefit from an onshore tight oil boom
Oil and gas contractors could be looking at an onshore tight oil boom in the south of England, according to a new report by the British Geological Survey (BGS), published at the same time as new government proposals to encourage onshore fracking. BBC News reports that BGS estimates between 2.2 and 8.6bn barrels of oil may be present in the Weald Basin across Sussex, Hampshire, Surrey and Kent. Much of the area has already been licensed for exploration, and the work is likely to require contractors with geosciences and drilling skills. More...
Construction contractors driven into umbrellas by False Self-Employment rules
Construction contractors are being driven into umbrella companies as a result of the new False Self-Employment legislation introduced in April 2014. The Construction Enquirer’s Grant Prior has seen documents that “reveal the workers are being told they can offset hundreds of pounds a week in travel and living expenses”. One source told Prior: “The revenue [HMRC] is sure to take a hard look at this. If the revenue clamp down on this then someone is getting a large back tax bill.” More...
Contractors could benefit from reduced admin as a result of expenses reforms
Contractors could have less paperwork for processing expenses and benefits following a new Treasury consultation scheduled to take place of the summer. Workplace Savings and Benefits’ Owain Thomas reports that the four areas identified by the Office of Tax Simplification (OTS) in its Review of employee benefits and expenses report will be included in the consultation. A wider review of employee travel and subsistence expenses is also to be part of the consultation. More...
Contractors still in HMRC’s sights as the taxman targets an additional £23.9bn
Contractors remain firmly in HMRC sights as a source of easy money, as the taxman aims to raise an additional £23.9bn in the 2013/14 tax year through targeted compliance activity. The sum was announced as part of HMRC’s latest fast facts document that details all of the campaigns that have hit contractors. The document also highlights HMRC’s future plans to focus on employment tax avoidance, offshore avoidance and tax avoidance schemes, all of which are likely to impact on the pockets of contractors. More...
Contractors with illegal cash hidden offshore face further HMRC probes
Contractors who have hidden cash offshore via Switzerland face further probes by HMRC as Swiss authorities prepare to hand over the details of the top ten locations where UK taxpayers have moved their cash to, as part of a UK-Swiss tax information sharing deal. In a report on Economia, head of tax at law firm Pinsent Masons, Jason Collins said: “This Swiss-UK treaty has already dramatically increased the amount of information that HMRC has on possible tax evaders. The hit list of top ten countries will be another key piece of the jigsaw. HMRC will now know exactly where to focus its efforts.” More...