HMRC tells ContractorCalculator that it’s in the public interest not to reveal IR35 data
Contractors are being kept in the dark about HMRC IR35 enquiry numbers and the success of the new measures introduced a year ago in May 2012. The taxman refuses to reveal relevant data following a Freedom of Information Act (FOI) request by ContractorCalculator. In its response to ContractorCalculator CEO Dave Chaplin requesting enquiry numbers and results, HMRC has claimed exemption by applying Section 22(1) of the FOI, saying it is “in the public interest to withhold this information”. HMRC has revealed that it plans to release the information about IR35 cases over the last 12 months according to its own timetable. But precisely what information and when it does not say.
IT and engineering contractor demand bucks trend: REC/KPMG Report on Jobs
IT and engineering contractor demand remained strong during April, according to the latest Recruitment and Employment Confederation (REC)/KPMG Report on Jobs. “Recruiters are reporting a renewed sense of purpose from their clients, with employers making hiring decisions more quickly than before,” notes REC chief executive Kevin Green. “Highly skilled jobs like engineering and IT are still big growth areas.” However, this encouraging news comes against a backdrop of falling agency billings, with demand growth slowing to its lowest level for nine months. More...
Engineering contractor demand fuelled by infrastructure investment: APSCo
Engineering contractor demand has grown by 2% since March 2013 and by 1% since February 2013. This is according to recent research by the Association of Professional Staffing Companies (APSCo), which says that the “UK government’s continued investment in infrastructure has boosted temporary employment levels across the engineering sector”. However, APSCo chief executive Ann Swain warns of looming skills shortages: “In order to prevent future skills shortages, the UK must look towards encouraging more individuals into the sector before it is too late”. More...
Growing advertising sales point to likelihood of more marketing and creative contracts
Contractors in the marketing, communications, media and creative sectors may see a growth in contracts, with clients returning to pre-financial crisis levels of advertising spend. The latest quarterly review of advertising spend on all major UK media by the Advertising Association and Warc shows that UK ad spend last year hit £17.172bn; the last time adspend exceeded £17bn was in 2007. The report forecasts 2.7% adspend growth this year, accelerating to 5% growth in 2014. More...
Contractors to benefit from improving business confidence
Contractors stand to benefit from improving business confidence, as projects stalled or postponed due to economic uncertainty are restarted, potentially leading to new contracts. The Institute of Accountants in England and Wales (ICAEW)/Grant Thornton UK Business Confidence Monitor (BCM) shows business confidence in the first quarter of 2013 at its highest level since the third quarter of 2010. Grant Thornton UK LLP CEO Scott Barnes believes that the improving confidence will encourage companies to invest: “There are clear signs that things are moving in the right direction and hopefully this wave of confidence shall see business beginning to free up their cash reserves.”
Contractors with funds hidden offshore threatened by further information sharing
Contractors with undeclared funds hidden in offshore accounts face increased risks of being found out by HMRC, as the UK government signs information-sharing deals with a further six British Crown dependencies. AccountancyAge’s Calum Fuller reports that “the Cayman Islands, Anguilla, Bermuda, the British Virgin Islands, Montserrat and the Turks and Caicos Islands have all agreed treaties and will pilot the automatic exchange of information bilaterally with the UK”. However, tax experts are concerned that HMRC may not have the resources to cope with the resulting flood of new information. More...
Oil and gas contractors benefit from Scotland’s growing supply chain exports
Oil and gas contractors are benefitting from the growing value of Scotland’s oil and gas sector’s supply chain exports, now worth an estimated £17.2bn. According to BBC News, the Scottish Enterprise and Scottish Council for Development and Industry co-authored survey shows that North America is the principal export market, followed by Africa. Contractors may increasingly find themselves in demand by overseas clients, as international sales are approaching 50% of the sector’s sales. More...
Contractor clients less likely to default on payment as corporate insolvencies fall
The risk of contractor clients defaulting on paying their contractors’ fees has fallen. The latest insolvency statistics from the Insolvency Service shows corporate insolvencies in England and Wales in the first quarter of 2013 have fallen by 15.8% compared with the same period in 2012. There were 3,619 liquidations and creditors’ voluntary liquidations during January, February and March, which was 5.3% fewer than the previous quarter. Over the longer term, the overall trend of company liquidations is downwards, reducing the chances of contractors losing out to clients going bust. Individual insolvencies were also down by 12.9% compared to 2012, suggesting that the UK’s economic recovery is gaining pace.
Contractors disappointed with measures announced in the Queen’s Speech
Contractors were left feeling disappointed by the measures announced in the Queen’s Speech to boost economic growth and contractor prospects. In response to the speech, the Confederation of British Industry’s (CBI) director general John Cridland called for measures that can make a difference now: “With only two years to go until the next election, business needs delivery on the ground, not time-consuming new bills that will have little or no impact before 2015”. Engineering and construction contractors may benefit directly from new contracts arising from the High Speed 2 (HS2) proposals, and higher earning limited company contractors will enjoy a National Insurance Contributions (NICs) rebate from 2014. More...
Expat contractors can now access guidance on the new Statutory Residency Test (SRT)
Contractors concerned about their tax residence status under new rules introduced on 6 April 2013 can now access HMRC’s guidance on how the new Statutory Residency Test (SRT) works. The new rules have been introduced to enable contractors who regularly work abroad to determine whether they should continue to pay tax in the UK. As well as automatic residency tests calculated based on how long a contractor has been resident and working in the UK, there are new ‘sufficient ties’ tests. These are designed to prevent contractors who are really UK residents working outside the UK for exactly the number of days to make them non-residents for tax purposes. More...
Contractors have until 19 May to submit their Employer Annual Return
Limited company contractors have until 19 May to submit their Employer Annual Return, and they must do so electronically or face an automatic penalty. The P35 records the previous financial year’s payroll totals for contractors paying themselves a salary from their limited company. This year’s P35 and P14 will be the last that contractors will be required to file, as the information supplied for HMRC’s Real Time Initiative (RTI) will make the forms redundant. Contractors filing their P35 late face penalties of £100 per month.