Manufacturing and construction contractors receive positive growth news
Contractors working in the manufacturing and construction sectors have experienced sustained growth so far in 2011. The Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Manufacturing PMI for February shows that the manufacturing sector held steady at January’s historic high, with record job creation benefitting contract and temp workers. According to the report, growth in the sector was at its highest level in February since June 2010, with a marked increase in residential construction. More…
Contracting, and its knowledge workers may be the UK’s new economic driver
Contractors may become a core element of the UK’s future knowledge export economy, representing the UK’s replacement to oil and coal as economic drivers. In a blog this week, the BBC’s home editor Mark Easton confirms that knowledge services already represent 68% of what the UK sells to the world. Easton highlights that, although the UK’s universities and business services sector are world class, the UK still “needs to produce the right kind of knowledge workers, to recognise the skills and abilities that will be most sought after by the global economy”. Is this a call to action for contractors? More…
Contractors should hold their ground as HMRC complaints rocket
Contractors experiencing poor customer service from HMRC and uncertain about the accuracy of tax rulings by inspectors should complain. Figures revealed by accountant UHY Hacker Young reveal that the number of complaints upheld against HMRC have shot up by 313% in just two years, and a whopping “56% of all VAT penalties and decisions which are appealed are subsequently found to be incorrect and quashed.”
Contractors may be facing ‘flawed’ and expensive HMRC record checks
Contractors in the frame for an inspection as part of HMRC’s campaign to record check 50,000 small businesses a year may find themselves part of a ‘flawed’ and expensive exercise, according to the Institute of Chartered Accountants of Scotland (ICAS). In a response to HMRC’s consultation about the business records checks campaign, ICAS was highly critical of many of HMRC assumptions, claiming these to be “unsubstantiated by any detail”. ICAS believes inspections could cost a contractor limited company over £500 for each visit.
HMRC turns the heat off contractors – for now
Contractors have been granted another minor reprieve from being HMRC’s compliance target as the taxman has announced a new campaign targeting plumbers, gas fitters and heating engineers for undeclared earnings and unpaid tax. This is similar to a campaign experienced by dentists and doctors a year ago. HMRC says that tradespeople who come forward to make a full disclosure before 31 May 2011 will mostly face a low penalty rate of 10%, and will have until 31 August to pay up.
Contractors urged to report email scams
Contractors are being urged to report email scams to Action Fraud, the UK’s national fraud reporting service. Action Fraud has created an email address, email@actionfraud.org.uk, that anyone can use to forward emails they suspect as being scams. “This is the first time we have been able to collect and analyse scam mail and emails in this way,” explains National Fraud Authority CEO Dr Bernard Herdan. “Collecting intelligence is the key to us being able to disrupt the activities of fraudsters and target their networks for closure.” Action Fraud is a service provided by the National Fraud Authority, an executive agency of the Attorney General’s Office.
Contractors largely unaffected by OTS rate relief report, but deeper issues flagged
Contractors will remain largely unaffected by tax relief rate changes proposed by the Office of Tax Simplification (OTS). In a report published this week, the OTS examines 155 of the 1,042 tax reliefs it has identified and recommends that 54 remain unchanged, 37 undergo further analysis and 47 are abolished. The report also highlights deeper issues, such as the potential merging of income tax and National Insurance Contributions (NICs), which have emerged as part of the OTS review. More…
Contractors with company cars have new advisory fuel rates since 1 March
Contractors who run a company car through their contractor limited company have a revised set of advisory fuel rates from 1 March 2011. As a result of the new rates, published by HMRC, contractors with vehicles fuelled by diesel will enjoy an extra penny a mile across all engine sizes. However, contractors with petrol engines larger than 2000cc lose 2p a mile. More…