ContractorCalculator survey: HMRC using flawed risk assessment tools
Contractors are facing unnecessary IR35 reviews as a result of HMRC’s flawed business entity tests. This is the key conclusion based on the responses of 10,961 contractors taking the ContractorCalculator Free Online IR35 Status Test. Only 19% of contractors surveyed took HMRC’s business entity tests, and of those scoring in the high risk category, ContractorCalculator’s IR35 test showed that over a third were outside IR35. More...
Contractors at higher risk of IR35 reviews, says IR35 expert
Contractors could be facing a huge increase in the number of IR35 reviews handled by HMRC’s IR35 compliance unit, growing from the 230 forecast for the end of the 2012/13 tax year to over 1,000 in 2013/14. A former HMRC inspector, IR35 expert Andy Vessey of Qdos Consulting believes that the 36-strong IR35 compliance team can handle well over 1,000 IR35 reviews each year. Vessey notes that the low number of cases to date is likely to be a reflection of ‘bedding in’ by HMRC’s team. More...
Contractors across all disciplines to benefit from £100bn North Sea investment
Oil and gas contractors, plus those working in core contracting disciplines such as engineering, IT, interim management and finance, look set to benefit from the highest levels of investment in the North Sea for over 30 years. Oil & Gas UK’s 2013 Activity Survey identifies investments forecast to generate tens of thousands of new contracts and jobs. The new investment in production from existing oil and gas fields is expected to reverse the decline in North Sea production, and contracts, experienced as a result of Chancellor George Osborne’s 2011 windfall tax on energy companies. More...
Contracting sector performance forecast to improve over the next quarter
The UK’s contracting sector performed below expectations over the last three months, but contractors should see stronger hiring in the quarter to come, according to the Confederation of British Industry (CBI). In its latest quarterly survey of the UK’s service sector, the CBI found that the business and professional services sector “fell far short of predictions of strong volumes growth”. However, firms responding to the survey predicted a “slightly brighter picture for the next three months, with volumes in both sectors expected to rise and employment increasing more markedly.” More...
Contractor demand sustained, despite “stalling economic growth”
Contractor demand remains high, despite “stalling economic growth” in the first quarter of 2013. The latest Labour Market Outlook (LMO) from the Chartered Institute of Personnel and Development (CIPD) shows that contractor clients plan to continue their hiring spree. This is the fourth consecutive quarter of hiring growth, which the CIPD attributes in part to increased contractor hiring. “The number of people employed on temporary contracts will also continue to boost employment levels during the first quarter of 2013, as employers report that 29% of new recruits will be employed on this basis,” it says. More...
IT contractors facing lengthier interviews to secure contracts
IT contractors could spend up to 38% more time to find a new contract, compared to the average pre-recession contract search. A survey by Randstad Technologies shows that “IT professionals who secured a new job in the last 12 months spent 83% longer on the interview process for that role compared to 2008.” However, the silver lining is that there are an estimated 700,000 unfilled IT roles across Europe. “This skills gap is combining with industry growth to ensure that candidates in the UK who demonstrate the right specialisms are in red hot demand, and are securing jobs more quickly than the national average,” explains Mike Beresford, managing director of Randstad Technologies. More...
Contractors can access HMRC’s tax advice in video format
Contractors can now access HMRC’s tax and compliance advice via YouTube. HMRC says that its ‘how to’ guides, which it first launched in 2011, now includes a “new suite of videos cover[ing] practical subjects such as PAYE, VAT, Corporation Tax, record keeping, registering as an employer, payroll systems and trading with other countries”. There are also more in-depth guides aimed at agents, such as contractor accountants, which cover topics such as penalties and reducing errors.
Tax evading contractors face being ‘named and shamed’ by HMRC
Contractors caught dodging their taxes face being ‘named and shamed’ in a new campaign launched by HMRC. The Guardian’s Mark King reports that the details of nine small businesses have been released by HMRC, and the taxman intends to update the list every three months. However, HMRC has been criticised for focusing on small businesses when, according to Tax Research’s Richard Murphy: “Banks, wealthy lawyers and global corporations [are] offered anonymity. It seems that only little people pay tax and only little people are named and shamed.” More...
New shale gas guidelines for onshore energy contractors
For the first time energy contractors working in the onshore shale gas sector can access guidelines covering best practice for shale well operations on the UK mainland. The United Kingdom Onshore Operators Group (UKOOG) has published guidelines covering “hydraulic fracturing and the public disclosure of fracture fluid composition.” Authored by both operating and service companies and regulators, the guidelines provide best practice advice on the exploration and appraisal stage of shale gas well developments.