Contractors warned: a more rigorously enforced IR35 is here to stay
Contractors are unlikely to see IR35 abolished until root and branch reform of the UK tax system is undertaken; in fact, they can expect IR35 to be more rigorously enforced by HMRC. This is the startling conclusion of a white paper, IR35 Solutions: Review of the current legislation and future options, published by ContractorCalculator.co.uk and authored by CEO Dave Chaplin. “The UK tax system fails 21st Century work patterns where, in reality, the distinction between the employed and contractors can be as absurd as a job title and access to the canteen,” explains Chaplin. “HMRC’s tests of employment have not evolved at the same pace as the UK’s flexible, highly skilled, knowledge-based workforce. More ‘sticking plasters’ won’t work, so IR35 should stay in place until other tax changes mean it is no longer needed.” More…
Contracting work demand is increasing as more workers choose self-employment
Contracting work is now in greater demand, with more workers choosing self-employment. According to a mounting body of evidence, the surge in demand for contract work mirrors increasing demand for the services contractors offer by end-user clients. Last year the Office of National Statistics Labour Market Survey revealed self-employment to be at a record high and January’s KPMG/REC Report on Jobs is also positive [see next news item]. ContractorCalculator.co.uk had a record number of visitors in January, as CEO Dave Chaplin explains: “So far this year, ContractorCalculator’s unique visitors grew to over 130,000 during January, the highest number on record and up from our most recent ABCe audited total of just over 110,000 in September last year.” More…
Contractor demand increase ongoing since August 2009
Contractor and temp demand has been increasing since August 2009 and has risen at its fastest pace since June 2010, according to January’s KPMG/Recruitment and Employment Confederation (REC) Report on Jobs. Contractor vacancies have also experienced a jump in demand, growing at their greatest rate in three years. Core contracting disciplines dominate the demand league, with engineers in second place and IT contractors in third; blue collar workers are at number one.. More…
IT contracting recovery strengthened in Q2 2010
IT contracting was well on the way to recovery during the second quarter of 2010, shows the latest e-skills Bulletin for Q3 2010. Contract positions on offer had risen by 11% on the previous first quarter of 2010, and skills shortages “remained at historically low levels”. Although the bulletin is now somewhat dated, it reveals that during the second quarter demand was outstripping supply, resulting in increased rates and greater competition for recruiters.
IT contractors may face a shrinking IT market over the next two years
IT contractors anticipating a positive 2011 will be dismayed by TechMarketView managing partner Anthony Miller’s comments reported on ComputerWeekly.com. “We have not been pessimistic enough” Miller said to IT suppliers at a London conference. He forecasts further declines in the IT sector over the next two years, despite sales growth in what he called ‘end user devices’ markets. More…
Contractors invited to submit Budget suggestions
Contractors and others have been invited to submit their ideas for next month’s Budget. Chancellor George Osborne extended the invitation during a visit to a Cheltenham-based manufacturing firm, saying: “I want to hear about your brightest and best ideas, because next month’s Budget will be all about growth.” According to HM Treasury, this latest initiative was stimulated by the success of public input into last year’s spending review. “I want to know what businesses, large and small, want from me,” added Osborne.
New skills resources announced for contractors interested in renewables sector
Contractors looking for opportunities in the renewables sector could benefit from publicly funded training courses aimed at developing a skilled workforce to help the UK’s renewable sector grow. The new National Skills Academy for Environmental Technologies will receive £2.5m in funding over the next three years to develop a network of 14 training provider hubs in Further Education Colleges, and will deliver 2,000 publicly funded and 200,000 privately funded training courses.
Contractor agencies to gain voice in Office of Tax Simplification
Contractor recruitment agencies now have a voice in influencing contractor tax affairs, such as the current review of IR35, following the appointment of the Recruitment and Employment Confederation (REC) to the small business consultative committee of the Office of Tax Simplification. “The OTS’ work comes at a critical time for the economy and the recruitment industry,” says REC Head of Policy Gillian Econopouly, “and we will use this opportunity to promote a tax system that is more navigable and transparent for businesses, and especially SMEs.”
Germany leads European online contractor demand
Germany leads online demand for contractors across Europe, according to the Monster Employment Index Europe for January 2011. The Index fell slightly compared to the previous month due to seasonal factors, but reported annual growth of 25%. According to Monster Europe’s VP of Business Operations Andrea Bertone, despite the monthly decline, the outlook is encouraging: “The long-term picture continues to improve, with Europe’s industrial production, together with a high-performing Germany, creating the highest annual growth rate seen since the recession.” More…