Contractors without investigation insurance are taking risks with IR35
Contractors are running the risk of being found inside of IR35 simply because they do not have insurance to cover their defence when investigated by HMRC. According to ContractorCalculator CEO Dave Chaplin, “Anecdotal evidence shows that contractors without insurance are more likely to be found inside IR35 than those who have, irrespective of the facts of the case.” He says the need for contractors to have investigation insurance has become more pressing since HMRC stepped up its IR35 compliance campaign in May 2012. More...
Could IT contractors be facing early termination on flagship Universal Credit project?
IT contractors working on the flagship Department for Work and Pensions (DWP) Universal Credit project may have their contracts terminated early. According to a Computer Weekly report by Kathleen Hall, suppliers at key IT services firms have “been notified by the department [DWP] to ‘suspend work’.” However, a DWP spokesperson told Hall that: “It's categorically not true to say that work has stopped on Universal Credit. All of our suppliers are working with us to deliver Universal Credit from April.” More...
IT contractors to benefit from drive for pan-European skills certification
IT contractors will be able to contract freely throughout the European Union (EU) through a proposed common EU certification system for information and communication technology (ICT) skills. The ‘Grand Coalition for Digital Jobs’ is a new EU initiative to “better match Europeans seeking work and in education with the massive number of ICT job vacancies in the EU”. It is aimed at addressing Europe’s predicted 900,000 ICT vacancies by 2015. More...
Contractors to benefit from economic uncertainty, as BCC lowers growth forecasts
Contractors are continuing to benefit from the current economic uncertainty, which looks set to continue according to the British Chambers of Commerce (BCC). Economic growth will barely reach 1% during 2013, says BCC, rising to a possible 1.8% in 2014. Although bad news for the economy, this is good news for contractors. That’s because numerous labour market and economic surveys confirm client organisations are deliberately choosing contractors over employees to manage uncertain trading and operating environments. More...
Contractors prospects upbeat following February’s Service Sector PMI
Contractors working in the UK services sector, which accounts for approximately 75% of economic output, had good reason to be cheerful following February’s Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Services Purchasing Managers Index (PMI). The services sector, which includes IT and professional services, experienced the fastest rate of increased activity for five months. Less positive was the fall in manufacturing output and pronounced slump in construction activity from February’s Markit/CIPS UK Manufacturing and Construction PMIs. More...
Contractors’ chances of getting paid on time increase, following new PPC sign-ups
Contractors contracting direct with clients may be more likely to get paid on time as 94 new FTSE 350 companies sign up to the Prompt Payment Code (PPC). The total number of PPC member companies has reached 126, with a further two dozen unlisted firms committing support. Despite members making a commitment to pay their suppliers promptly, many contractors have confirmed to ContractorCalculator that payments are still not trickling down the supply chain, leaving many waiting for up to six months and more for their fees. More...
Contractors should tighten credit control following a surge in insolvencies
Contractors should tighten their credit control procedures and not leave themselves exposed to months of outstanding fees following a surge in IT company insolvencies. According to credit risk firm Experian, compared to the same period in 2012 the number of IT firms going bust in January 2013 doubled, from 35 to 69. Engineering and construction both experienced a decline in insolvencies between January 2012 and January 2013: from 40 to 29, and from 215 to 199 respectively. More...
HMRC offers ‘Online RTI-week’ for contractors running their own payroll
Limited company contractors running their own payroll, or who want to learn more about HMRC’s Real Time Initiative (RTI) for collecting Pay As You Earn (PAYE) income tax and National Insurance Contributions (NICs), will benefit from HMRC’s ‘Online RTI week’. Taking place between 11 and 15 March 2013, HMRC is planning live Twitter question and answer sessions, and also plans to release content on its Flickr channel.
Contractors with property portfolios saw their wealth increase in the last quarter
Contractors who have chosen to invest in residential property portfolios saw the value of their investments increase in the quarter to February 2013. The Halifax House Price Index for February 2013 showed that house prices were 1.9% higher than the previous quarter. And there is further good news to come, as Halifax housing economist Martin Ellis notes: “We expect to see a national increase in house prices over the course of 2013.” More...
Contractors selling second homes targeted by HMRC in new campaign
Contractors who have sold a second home should confirm with their accountant that their tax affairs are in order, or they could face possible action by HMRC. In a new Property Sales Campaign, the taxman is offering contractors with unpaid capital gains tax an opportunity to pay what they owe by 6 September 2013, after which “HMRC will take a much closer look at the tax affairs of those who have sold properties other than their main home”. Contractors must also inform HMRC of any tax owed by 6 August 2013.