European online demand for contractors stagnates in May
Online demand for workers during May fell marginally across Europe and stagnated in the UK reveals the Monster Employment Index (MEI) for Europe. Europe-wide online demand for IT and engineering workers fell slightly, although demand for construction contractors increased by 0.7%. The environment, architecture and urbanism category, which includes assignments for construction, engineering and science contractors, shot up by 7.2%, representing a 23% year-on-year increase. “Reduced overall consumer and business confidence indicate we are clearly not yet out of the woods,” warns Alan Townsend, Vice President of Sales Readiness and Business Operations for Monster Europe. More…
UK contract markets “buoyant” according to recruiter
May proved a buoyant month for the UK contract and jobs market, with new vacancies increasing by 17% year on year and 5% compared with April, according to the latest Reed Job Index, and in contrast to the MEI. The core contracting disciplines of IT, engineering, construction and energy all showed an increase in the number of advertised roles and in engineering’s case it was a substantial rise of 14% compared to the previous month. “While the UK is still technically in recession, these figures point towards a growing confidence among UK employers,” explains reed.co.uk Marketing Director Mark Rhodes, “and we’re cautiously optimistic about the prospects for continued jobs growth over the coming month, though recruiters will be keeping a keen eye on developments in the eurozone.” More…
Contractors should delay tribunal hearings and try ADR to avoid backlog
Contractors disputing their tax position and who are about to engage with HMRC may wish to delay their action until the Alternative Dispute Resolution (ADR) pilot has been extended nationally. According to law firm Pinsent Masons’ Tax Partner Ian Hyde, there is a growing backlog of tribunal cases created as a result of a “more aggressive” HMRC: “The increasing number of tribunal cases being heard is indicative of the pressure HMRC has been under to clamp down on tax avoidance and deliver extra revenue.” HMRC is extending its ADR scheme for small business as it has a backlog of 22,100 tribunal cases. More…
Manufacturing and construction contractors experience market slow-down
Contractors with clients in the manufacturing and construction sectors experienced a slow-down in May. According to the Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Construction Purchasing Managers’ Index (PMI), growth in the sector is slowing, although firms are still hiring. The UK Manufacturing PMI fell to below 50, which indicates that the sector shrank in May. CIPS’s CEO David Noble warned that manufacturing’s poor performance could have wider implications: “The sector could well become a drag on the UK economy as it seeks a return to better health.” More…
Contractors should form a core component of any new UK industrial policy
Contractors and the broader flexible workforce of highly skilled knowledge workers should form a core component of any future UK industrial strategy by filling skills gaps. In an interview with the Guardian’s industrial editor Dan Milmo, Royal Academy of Engineering president Sir John Parker calls for the UK government to follow the lead of France and Germany and prioritise sectors of strategic performance. He suggests “reforming immigration restrictions that threaten companies with a shortage of engineers”, which could provide greater opportunities for non-EU and Commonwealth contractors seeking to work in the UK. Contractors can fill skills gaps until the impact of industrial policies on training and skills development takes effect. More…
Updated HMRC guidance on VAT treatment for contractors supplying staff to clients
Contractors who supply other contractors to their clients, either as substitutes or as sub-contractors, can now access improved guidance on their VAT treatment from HMRC. The HMRC Reference: Notice 700/34 has been restructured and reference to the Staff Hire Concession, which allowed agencies to avoid charging VAT on staffing element of their fees to clients until it was withdrawn in April 2009, has been removed. HMRC requires contractors supplying staff who are “contractually employed or otherwise engaged” to clients to charge VAT on top of their fees. More…
US client candidate screening software rejecting qualified contractors
Contractors applying for US contracts are being rejected by client screening software that has overly specific criteria. This is according to US academic Peter Cappelli, professor of management at University of Pennsylvania’s Wharton School. “Clearing the software hurdle is as important as being able to do the job,” Cappelli told Wall Street Journal columnist David Wessel. Cappelli recommends that clients adjust screening criteria to allow greater “personal consideration” for contractors whose attributes don’t exactly match requirements, but who might actually be strong candidates. More…
Latest avoidance taskforces may impact on contractors
Contractors with property portfolios in the East Anglia, London, Yorkshire and North East regions are being urged to ensure their tax affairs are in order. This warning comes from the Chartered Institute of Taxation (CIOT) in response to HMRC’s announcement that it has created six new taskforces to target London markets, taxi firms, restaurants and property rentals. CIOT’s Gary Ashford urges contractors with tax irregularities to come forward and not wait to be found out: “Voluntary disclosure usually leads to lower penalties, a reduced chance of prosecution and a reduced risk of being ‘named’ under the publication of details of deliberate defaulters scheme.”
HMRC staff vote for possible strike action over further job cuts and privatisation
The taxman has voted to consider taking strike action in protest at 10,000 extra job cuts and further privatisation of core services. Members of the Public and Commercial Services Union, of which there are 55,000 currently working for HMRC, are concerned that current call centre outsourcing trials may be extended, leading to further job losses and reduced quality of service for taxpayers. "At the same time as cutting jobs and closing offices, we have real concerns about creeping privatisation in HMRC, with public money being handed to companies to make a profit,” explains PCG general secretary Mark Serwotka. More…