New off-payroll guidance confirms contractors must prove IR35 status
Contractors working in the public sector must prove they are outside IR35 or face being forced onto their client’s payroll. That’s the message from Cabinet Office guidance just published, which confirms how government departments must assess any contractors earning greater than £219 per day and/or on contracts of six months or longer. There are no surprises following the guidance leaked to PCG earlier in the summer, although it is still not clear what providing ‘assurance’ entails for contractors unable to prove they are low-risk using HMRC’s business entity tests. More...
IT contractors face dual challenge to secure well paid public sector contracts
IT contractors seeking well paid public sector contracts face the dual challenge of overcoming the off-payroll rules at the same time as budget cuts are forecast to cut IT spend by 3.1% to 2015. TechMarketReview’s latest report on the main trends affecting the UK public sector’s software and IT services spend shows that every part of the public sector, except the police service, cut IT budgets to the tune of £11.5bn in 2011. That trend is predicted to accelerate as public sector clients negotiate exits from contracts with large IT suppliers. More...
Contractors are choosing to go contracting for the flexibility and lifestyle benefits
Contractors are actively choosing to go contracting and are not being forced into a freelance career through economic necessity. Those are just some of the findings in a new report by Contractjobs.com and Freelance Professional Services. Their State of the Contractor Nation report also shows that 60% of contractors have chosen contracting for the long term. The research highlights that 62% of contractors save regularly, resulting in 35% of contractors confirming they could maintain their lifestyles for up to six months if out of contract.
Contractors should target high-growth SMEs for contracts
Contractors seeking a fresh market for contracts should consider targeting high-growth small to medium sized enterprises (SMEs), as new research shows 78% of small firms plan to increase headcount over the next 12 months. According to ECI Partners’ Third Annual Growth Survey, high-growth SMEs are looking to the export markets of the Asia Pacific region, as well as research and development-inspired innovation, to underpin growth. But business leaders of high-growth businesses have little faith in the coalition’s ability to create the right business environment for growth: just 16% of SMEs surveyed feel that the coalition’s policies have had a positive impact on their business, down from 47% in 2011. More...
Aberdeen needs 120,000 new oil and gas workers by 2022
An aging oil and gas workforce means Aberdeen needs to generate up to 120,000 new recruits for jobs and contracts by 2022 if it wishes to remain a global centre of energy excellence. This is according to a BBC News report in which PricewaterhouseCoopers calls for “the creation of an Aberdeen Energy Academy”. Mark Higginson, senior partner at PwC in Aberdeen, told the BBC: “The supply of appropriately skilled labour continues to be the greatest threat to Aberdeen's ability to become a global energy centre of excellence.” More...
Contractors facing mixed prospects from two-speed contract market
Contractors working in different sectors are facing markedly different prospects, according to key economy indicators for August. The Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Purchasing Managers’ Indices for the manufacturing, construction and services industries show the evolution of a two-speed contract market. Although shrinking, the manufacturing sector has bounced back in August from a July slump and the services sector recorded strong growth and hiring. Construction, however, experienced its sharpest downturn since 2009. More...
Marketing and media contractors to benefit from increased government comms spend
Marketing and media contractors can potentially secure a share of the government’s £284.8m projected marketing spend in 2012/2013. Marketing magazine’s Gemma Charles reports that the Cabinet Office’s ‘proactive communications plan’ will “encourage collaborative working” across Whitehall departments. According to Charles, central government marketers will be grouped into seven ‘hubs’ with overlapping objectives. Although this represents a significant increase in marketing spend, the budget is dwarfed by the spend under the previous Labour government, which reached £532m in 2009/2010. More...
Top worldwide locations for contracts revealed: the UK is in 8th place
Contractors researching the best locations to secure lucrative contracts can use the latest World Economic Forum’s Global Competitiveness Report to help their search. The 2012 report shows that the UK has moved up to 8th place, from 10th in 2011. Switzerland retains the top spot, followed by Singapore and Finland. The index defines competitiveness as “the set of institutions, policies and factors that determine the level of productivity of a country”, and draws together public and private data from 12 categories. More...
Contractors with outstanding tax returns urged to file by 2 October
Contractors with outstanding tax returns from the 2009/2010 financial year and earlier have until 2 October to file their returns under the terms of a special HMRC opportunity. Those meeting this deadline may benefit from more attractive tax settlements and lower penalties than would otherwise be the case. And contractors found to have large amounts of outstanding tax may be able to negotiate a repayment schedule with HMRC.