Substitution may be contractor silver bullet for IR35, say legal experts
Contractors who have an unfettered right to substitute cannot be in a contract of employment and therefore cannot be inside IR35. That’s the conclusion of legal experts following the UK Mail Ltd v Creasey Employment Appeals Tribunal ruling, which also underlines the importance of signed contracts. “The case confirms that documents remain very important if signed,” says Professor of Employment Law Patricia Leighton. More...
Contractors have a role to play in educating young people, says PCG NFD panel
Contractors have a role to play in providing a “good business education” to young people to encourage them to “take up entrepreneurial activities in the future and to ‘de-mystify’ the business world in general”. This is according to this year’s National Freelancers Day expert panel, which included former prime ministerial communications adviser Alastair Campbell, Scottish Enterprise chief executive Jane Wood, John Niland, Patron of the European Forum of Independent Professionals, and Cranfield University’s Professor Andrew Burke.
IT contract rate increases led by software engineers and designers
Software engineers, web developers, architecture specialists and design/user experience contractors have all benefitted from double digit percentage growth in day rates over the last 12 months. In its annual Industry Survey, published in association with Computer Weekly, recruiter and IT consultant Mortimer Spinks has found that nearly a third (32%) of all IT contractors have experienced a contract day-rate change during the last 12 months. The recruiter suggests that IT contractors, such as software engineers, who are “in a position to give the business the edge over the competition by delivering a better quality product” are highly valued, which is reflected in pay. More...
IT contractors to benefit from higher spending in service sector
IT contractors look set to benefit from higher spending on IT across the UK’s service sector in the coming year. The latest quarterly Service Sector Survey shows a predicted increase in IT spending for the first time since February 2012. In the professional and business services sector, a major consumer of contractor services, firms “were considerably more optimistic about the business outlook than three months ago”, with both business values and volumes improving unexpectedly at the fastest rate since November 2007. More...
Local government contracting opportunities may increase as austerity bites
Contractors may enjoy an increasing number of local government contracting opportunities as the sector adopts new flexible working practices to maintain service delivery. The Leading Culture Change report by the Chartered Institute of Personnel and Development and the Public Sector People Managers' Association (PPMA), highlights that “the traditional psychological contract in local government – including job security and a final salary pension scheme – have either disappeared or are in the process of disappearing”. Greater labour force flexibility is required to maintain service delivery in the face of austerity-driven budget cuts. More...
Contractors face renewed threat of business record checks (BRCs)
Further details have emerged about HMRC’s new business record checks (BRC) campaign, suggesting it has already started in some parts of the UK. Accountancy Age’s Calum Fuller writes that contractors in London and East Anglia may already be on HMRC’s radar, with the campaign targeting the rest of the UK regions being rolled-out during January and February 2013. According to Fuller: “HMRC will be required to provide seven days' notice, either verbally or in writing, while obstructing visits may incur penalties of £300.” More...
BP asset sales will deliver new clients and contracts to UKCS contractors
Oil and gas contractors could benefit directly from BP’s UK Continental Shelf (UKCS) asset sales as the buyers, independent energy businesses, ramp up their North Sea operations to manage the assets. According to industry body Oil & Gas UK, the renewed investment by the assets’ new owners will increase production, boosting contract assignments and jobs.
Contractors using offshore tax solutions for tax evasion facing media probe
The activities of contractors and other UK taxpayers using offshore tax vehicles to evade tax are coming under increasing media attention. BBC News reports that a joint investigation by the BBC’s Panorama programme, the Guardian and the Washington-based International Consortium of Investigative Journalists “identified a number of…firms that specialise in setting up companies both in the UK and abroad…willing to facilitate tax evasion and turn a blind eye to criminal activity”. One corporate service provider was shown on Panorama saying: “The odds of getting caught by the UK tax authorities are roughly equivalent to winning the lottery.” More...
Contractors in nominee director roles facing government investigation
Contractors performing nominee director roles for multiple companies may be facing an investigation by the Department for Business Innovation and Skills (BIS). Following media stories of widespread tax evasion using ‘sham’ directors of offshore companies (see previous entry), BBC News reports that Business Secretary Vince Cable is launching a review of “the trade in and the abuse of nominee directors”. Cable told the BBC: “I can assure you that we will investigate fully any specific allegations and ensure that appropriate action is taken.” More...
Contractors sought to share IR35 experiences for MBA dissertation
Contractors are being asked to help IT contractor Gary Whitbread of ICD Projects Ltd with his MBA dissertation, by sharing their IR35 experiences via an online survey. Gary says: “I'm studying the potential impact from HMRC taking a hard-line approach to enforcing a tax law, in this case IR35. As there isn't much secondary research material, I need to do my own survey/research.” According to Gary, the survey should take no more than five minutes and is for recruiters, accountants and clients, as well as for contractors.