IT contractor demand grows, but falls short of 2009 peaks
The growth in demand for IT contractors is back in positive territory in November, following October’s surprise fall, but vacancy growth was higher in November 2009, according to the latest KPMG/REC Report on Jobs. Overall, temporary and permanent worker billings rose in November, which KPMG Partner and Head of Business Services Bernard Brown says might be significant. “This is very encouraging news, with the data suggesting that a turning point for the UK jobs market may have been reached as employers across the board are recruiting more people,” he explains. “Confidence among employers is clearly growing as many firms now look to growth in 2011.” More…
Online, realtime PAYE one step closer for many contractors
Contractors trading via umbrella companies or on agency payrolls are a step closer to realtime PAYE payments, following publication of a new HMRC consultation document. According to HMRC, “PAYE realtime information means employers will send HMRC information about tax and other deductions from employees’ pay when the employee is paid, rather than at the end of the year, as at present.” HMRC’s Acting Director General for Personal Tax, Stephen Banyard, says implementation could happen quite quickly. “We will pilot the system from April 2012 and begin to move employers onto the new system in stages over the following 18 months. We expect all employers to be using the new system by October 2013.” More…
Draft legislation targets contractors taking ‘disguised remuneration’
Contractors using trusts and other financial vehicles to avoid income tax and National Insurance Contributions (NICs) are the target of draft legislation likely to come into force on 6 April 2011. HM Treasury estimates that 5,000 employers with 50,000 employees are currently using ‘disguised remuneration’ schemes, so the legislation could raise £500m in additional tax and NICs. According to the Treasury, the legislation will “ensure that where a third party makes provision for what is in substance a reward or recognition or loan in connection with the employee’s employment, an income tax charge arises”.
Manufacturing growth forecast fuels future demand for contractors
Manufacturing contractors can expect an upbeat first quarter in 2011. Engineering, IT and other contractor disciplines serving the manufacturing sector are set to benefit from a surge in domestic and export demand. According to the forecasts in the latest CBI Industrial Trends Survey, 32% of manufacturers are predicting a rise in output in the coming quarter, sustaining the UK’s manufacturing renaissance and fuelling future demand for highly skilled flexible workers. More…
Contractors ride wave of manufacturing recruitment
Highly skilled contractors able to provide flexible and expert assistance at short notice have contributed to the strongest surge in manufacturing recruitment seen in its history, says the EEF BDO Manufacturing Output Survey. Alongside the CBI Industrial Trends Survey, the Markit/CIPS Manufacturing PMI and new Index of Production figures from the Office of National Statistics showing 10 of 13 manufacturing sectors in growth territory, manufacturing looks set to become a growing consumer of contractor services.
New contract market for offshore and energy contractors
Offshore and energy contractors will gain access to new contract opportunities following a deal struck by ten European nations, which have agreed to build a North Sea electricity grid that could supply 46% of Europe’s power by 2050. Construction of the grid, which would link European power networks to offshore installations, will require a huge range of onshore and offshore engineering and energy expertise, creating up to 150,000 jobs by 2030. More...
Contractor hopes for a South Atlantic oil boom dashed
Oil & gas contractors hoping for a lucrative South Atlantic oil boom have had their hopes dashed. The latest drilling results have yet to confirm any significant oil and gas reserves beneath the continental shelf around the Falkland Islands. Desire Petroleum’s test drilling initially suggested an economically viable find, but within days further analysis showed circulating fluids were water, not oil.