Contractor responsibilities for Employment Intermediaries reporting still in doubt
Contractors are still uncertain about what reporting is required under the Employment Intermediaries legislation despite HMRC’s consultation response. Parasol managing director Derek Kelly believes that HMRC’s response leaves key questions unanswered for both umbrella company and limited company contractors: “We didn’t feel that the document provided sufficient clarity and certainty as to whether staffing firms will need to include contractors in quarterly returns to HMRC.” More...
ContractorCalculator responds to OTS Employment status review key questions
Contractors and other contracting sector stakeholders are awaiting the outcome of the Office of Tax Simplification’s (OTS) Employment status review that is due to be published at the end of February 2015. The key highlights of ContractorCalculator’s response, delivered by CEO Dave Chaplin, are that: the existing employment legislation case law should be kept for now; using employment case law for tax purposes does not ultimately work; a statutory employment test cannot be defined, as it is mathematically flawed. More...
‘Responsible’ umbrella companies get green light from HMRC and government
Umbrella companies that offer compliant services to contractors have been recognised by the Financial Secretary to the Treasury David Gauke, says the Freelancer and Contractor Services Association. In his response to a written question Gauke said: “Umbrella companies have been a part of the UK labour market for many years and, when operated responsibly, provide a useful conduit through which payments, including tax, can be made.” He added that: “HMRC [is] not taking steps to stop agencies using umbrella companies to manage the payroll function of companies within the construction industry.”
Contractors benefit from sustained hiring as the UK gets off to a good start in 2015
Contractors benefited from another month of sustained hiring as the UK economy started 2015 on a positive note. The Purchasing Managers’ Indexes (PMIs) from Markit and the Chartered Institute of Purchasing and Supply (CIPS) for January 2015 all show strengthening activity:
- Staffing levels have risen for 21 consecutive months, shows the UK Manufacturing PMI, with strong export orders accounting for much of the growth. The benefits of the low oil price are starting to filter through into the manufacturing sector, which may enable contractors to be more bullish about future rate increases
- The UK’s construction sector underwent “a robust and accelerated expansion of overall business activity at the start of 2015”, according to the UK Construction PMI. Hiring in the sector slowed, but was still well within growth territory
- Output and new business “increased at accelerated and above survey average rates” and near record hiring levels were the highlight of the UK Services PMI that said: “Companies were suitably encouraged by these trends to hire additional staff at the joint second-fastest rate in the survey history.”
Oil and gas contractors should consider assignments outside the UK, suggests survey
Oil and gas contractors may wish to consider their options outside of the North Sea, as confidence in the province continues to plummet. The Oil & Gas UK Business Sentiment Index for the fourth quarter of 2014 shows that optimism dropped rapidly into negative territory for the second consecutive quarter. Given the increased calls for cost cutting within North Sea operations, contractors seeking well paid contracts could consider working in many of the other offshore oil and gas provinces that prize workers with North Sea experience. More...
Contractors seeking highest paid work outside London should target the North West
Contractors who want to earn top rates but don’t want to live and work in London and the South East should target clients the North West of England. According to a survey by contractor employment services provider Parasol, 13 of its current 50 top earners are based in the North West. “The region is home to some of the country’s most talented and in-demand contingent professionals across sectors such as IT, finance, telecoms and engineering,” notes Parasol managing director Derek Kelly. More...
Serial tax avoiding contractors the target of new anti-avoidance measures
Contractors and other taxpayers who repeatedly use tax avoidance schemes and who might use several schemes in parallel are to be targeted by new anti-tax avoidance rules being developed by HMRC. In its new consultation, ‘Strengthening Sanctions for Tax Avoidance’, HMRC sets out proposals to tackle the serial use of tax avoidance. The taxman is proposing that there are: “additional financial costs such as a surcharge and additional reporting requirements on users of multiple schemes that fail.” More...
Contractors asked for their views on penalties regime
Contractors have been asked to submit their views on a new consultation launched by HMRC on how it should apply penalties for things such as late or non-payment of tax and also for paperwork that is not filed on time, or at all. According to HMRC, it is: “Considering whether and how it should differentiate between those who deliberately and persistently fail to meet administrative deadlines or to pay what they should on time, and those who make occasional and genuine errors for which other responses might be more appropriate.” More...