Contractors using tax avoidance schemes must pay up as APN challenge is rejected
Contractors involved in tax avoidance schemes who have received Accelerated Penalty Notice’s (APNs) may have no choice but to pay them after a challenge against HMRC in the High Court was comprehensively rejected. “This is an important result, and good news for the vast majority of taxpayers who do not try to avoid paying their fair share of tax,” highlights HMRC Director of Counter Avoidance David Richardson. HMRC plans to issue approximately 64,000 notices by the end of 2016, bringing in £5.5bn in tax payments by March 2020. Anyone who has received an APN but has further questions should contact HMRC. More...
Contractors and recruitment sector staff at risk from HMRC’s IR35 proposals
Contractors and recruitment sector professionals would be put at risk if proposed administrative changes to IR35 went through. This is according to the Association of Professional Staffing Companies head of external relations and commerce, Samantha Hurley who highlights that HMRC is considering asking clients and recruitment firms to assume more responsibility for deciding whether an engagement is inside or outside IR35. Hurley believes this responsibility will encourage recruitment staff to err on the side of caution, as they will be liable for any outstanding employment taxes, should they make the wrong call: “[Changes would cause] a huge increase in false employment, an upward pressure on rates as contractors look to recoup lost income, and in the worst case, a loss of skills to other overseas locations.” More...
Oil and gas contractor prospects boosted by BP’s North Sea investment
Oil and gas contractor prospects have received a boost following BP’s decision to invest £670m into its North Sea assets. It is estimated that the investment will guarantee that BP’s operations continue in the area until at least 2030, safeguarding production contracts and jobs. The news has been welcomed by Oil & Gas UK chief executive Deirdre Michie: “It is encouraging to see the continuing investment BP is making in its North Sea assets and projects to deliver a secure indigenous supply of energy for the country.” More...
Contracting opportunities at record levels due to outsourcing growth
Contractors are enjoying increased numbers of opportunities in the UK and across Europe, as outsourcing activity hits record heights, reports Computer Weekly. In the UK specifically, both the value and the number of outsource contracts increased by 150% in the second quarter of 2015. This comes after Europe recorded a 25% fall in spending through the first quarter, which was largely attributed to caution in the build up to the UK General Election. The financial and energy sectors proved to be the most buoyant, while the manufacturing and transportation sectors recorded declines in contract activity. More...
Contractors benefit from steady growth across the UK economy
Contractors benefitted from another month of modest growth throughout July 2015. The Purchasing Managers’ Indexes (PMIs) from Markit and the Chartered Institute of Purchasing and Supply (CIPS) for July generally show marginal growth in activity and contractor hiring:
- Staffing levels increased for the 27th consecutive month in July, reports the UK Manufacturing PMI, attributed largely to efforts to clear backlogs of work. Production growth remains sluggish and is being largely carried by the strong performance of the consumer goods sector.
- Construction output growth slowed down from June’s peak, amid concerns over a weaker rise in housing activity, according to the UK Construction PMI. Employment growth slowed down during July, though job creation remained strong as the ongoing skills shortage meant sub-contractor availability dropped for the 25th month running, “the longest continuous period recorded by the survey for over a decade”.
- Business growth in the services sector remains on a strong growth path, according to the UK Services PMI. “Growth of business activity remained sharp, despite easing slightly since June”, while 18% of service providers increased their headcount, double the proportion of those who cut staff.
Government addresses contractor pay dispute problem
The government has moved to resolve late payment of contractors by their clients by proposing the creation of a Small Business Commissioner. In a recent consultation document, Minister of State for Small Businesses Anna Soubry highlights the issue of late payments as one that prompted the proposal: “[The Small Business Commissioner] would encourage a culture where more disputes are avoided. And where they occur, it would empower small businesses to take action knowing they can deal with disputes in a way that is quicker and cheaper than going to court.” In June 2015, BACS estimated that small and medium-sized businesses are still waiting for £26.8bn of late payment debt. More...
UK oil and gas contractors contribute to economic growth
Oil and gas contractors driving increased production in the North Sea have helped the economy grow in the three months to July. This is according to the latest CBI growth indicator, which provided a reading of +20% when balancing firms reporting growth over the last three months against those witnessing declines. “A healthy pace of growth puts the economy on a firm footing going into the third quarter and it looks set to stay that way through the rest of this year, as oil prices and inflation help support spending,” highlights CBI Head of Economic Analysis Anna Leach. More...
Contractors in the Netherlands make huge contribution to GDP
Dutch contractors earned approximately €62.5bn last year, as just over a million contractors reported an average annual turnover which was in excess of €60,000, reports Staffing Industry Analysts. According to research results provided by ZZP Barometer and IT Staffing, this accounts for 10.2% of Dutch GDP, which amounted to €613bn in 2014. Contractors in the Netherlands earn €68.18 per hour on average, with IT, business services and education proving to be the most lucrative sectors. More...