Lords’ inquiry highlights that the claimed benefits of IR35 are unproven
The results of the House of Lords Select Committee on Personal Service Companies inquiry has concluded that IR35’s benefit to the Exchequer is in doubt. The Lords also acknowledge the contribution that contractors make to the UK economy, saying: “Serial contracting is a feature of the British workforce and is supported by both businesses and contractors.” Optionis chief executive Rob Crossland said: “It’s extremely refreshing to see some political support for contractors – as well as recognition of the challenges they can face when it comes to complying with complex legislation.” More...
Contractors “expect business to boom in 2014”, says PCG
An “overwhelming 70.1% of contractors expect the economy to improve over the next year”, shows new research by PCG. The figures come from a new quarterly survey that measures the business confidence of freelancers, contractors and independent professionals. “Due to their size and the way the sector spans almost every British industry, freelancers provide a unique and important insight into future macroeconomic trends. They are effectively the ‘budgie in the mine’ when it comes to our economy,” says PCG economic policy adviser Georgios Nikolaidis. More...
Contractor agencies are warned against paying their contractors gross
Contractor agencies have been warned against paying their contractors gross following the introduction of the false self-employment legislation on 6 April 2014. Legal consultancy Lawspeed urges agencies to pay their contractors, particularly those in the construction sector, net of Pay As You Earn (PAYE) income tax and National Insurance Contributions (NICs). “Recruitment agencies contracting directly with hirers are liable for PAYE payments if the new rules apply,” warns Lawspeed managing director Adrian Marlowe. More...
Contractor clients seeking to hire employees to meet skills shortages
Skills-hungry contractor clients are trying to tempt contractors into permanent roles, with permie salaries rising at their fastest rate since July 2007. This is according to the latest Recruitment and Employment Confederation (REC)/KPMG Report on Jobs, which also shows that contract placements are strong. “The latest data suggests that engineering, construction and IT are the sectors hungriest for talent,” says partner and head of business services at KPMG Bernard Brown. More...
Contractors asked for evidence about business ‘rights’
Contractors have been asked by PCG to give their views on whether as small businesses they enjoy the same rights as consumers. “It’s come to our attention that, in some cases, businesses do not have the same level of protection as individuals when buying goods or services,” says PCG. “Restrictive clauses in contracts can result in businesses having less rights than individual consumers and far less avenues for recourse,” the contractor organisation believes. More...
39,000 new oil and gas contracts and jobs to be created over the next two years
Oil and gas contractors could be looking at a new contracts and jobs bonanza, according to Bank of Scotland research. Up to 39,000 new jobs and contracts could be created as a result of investment plans by North Sea operators. Industry body Oil & Gas UK highlights that the recently retired and workers from other sectors could help address the sector’s acute skills shortages. More...
Contractors could be subject to ‘illegal’ powers awarded to the taxman
Contractors may be subject to illegal powers that have been awarded to HMRC in the 2014 Budget, and which allow the taxman to take money directly from defaulting taxpayers’ bank accounts. City AM’s Marion Dakers reports that the head of tax at the Institute of Chartered Accountants in England and Wales (ICAEW), Frank Haskew, said: “It’s a fundamental tenet of English law and democratic society that unless I’ve agreed it, there has to be judicial oversight, a judge would have to approve taking money out of my bank account.” More...
Interim management contractors in demand from financial sector
Interim management contractors are in most demand from the financial sector, according to the latest research by the Interim Management Association (IMA). According to a report in Recruiter, the “financial services industry continues to dominate the use of interim managers, standing at almost half (46%) of all private sector assignments in Q4, 2013.” IMA member Richard Clifford notes: “The main drivers for demand for interim management assignments within the sector are change projects and programmes linked to regulatory compliance, cost reduction and new target operating models.” More...