Contractor candidate shortages starting to impact on client project starts
Contractor candidate shortages are impacting negatively on client projects, as contractor agencies struggle to source suitably skilled candidates. The resulting slowdown in contractor demand growth indicates that these ongoing skills shortages are beginning to stifle projects. This is according to the Recruitment and Employment Confederation (REC) and KPMG Report on Jobs for August 2015, which found contractor agency billing growth to have slumped to its lowest rate since May 2013. “Because of the scarcity of talent available, we expect that employment will continue to grow but at a slower speed than we have seen over the past two years,” highlights REC chief executive Kevin Green. More...
Contractors provide solution to skills gaps as employers hiring optimism drops
Contractors working in the construction and financial sectors may see increased opportunities after UK employers recorded a fall in anticipated permanent hires resulting from candidate shortages. Hiring optimism growth is at a three-year low, reports the Manpower Employment Outlook Survey for the fourth quarter 2015. Notably, hiring intentions have fallen in the construction and finance sectors, which recorded quarter-on-quarter declines of 4% and 2% respectively. “Companies may be unsure about increasing headcounts right now, but they’ll always require specialist skills which contractors and freelancers can offer at low risk for the short term,” notes ContractorCalculator CEO Dave Chaplin. More...
Contractors pay more tax than employees, contrary to HMRC claims
Contractors contribute more tax than employees, in spite of HMRC’s calculations in its Intermediaries Legislation (IR35) discussion document which attempts to persuade readers that employees pay more tax. Within the document, HMRC distorts the example by providing calculations comparing two lawyers, one engaged as a contractor and the other as an employee. The example ignores basic realities of the contracting marketplace, for example that clients always pay much more in gross fees to contractors than they do in salary to employees. This shows that HMRC’s model is flawed in its basic assumptions. More...
Contractors may be closer to learning IR35 & expenses consultation outcomes
Contractors might be a step closer to finding out the results of the IR35 and expenses tax relief consultations. This comes after Chancellor George Osborne confirmed that the Autumn Statement, spending Review and Office for Budget Responsibility forecast will take place on Wednesday 25th November 2015. “It is possible that this year’s Autumn Statement will be used by the Treasury and HMRC officials to propose plans for the future of IR35 and contractor travel and subsistence expenses tax relief,” says ContractorCalculator CEO Dave Chaplin, who highlights the annual Autumn Statement as an oft-used launch pad for important legislative and policy announcements. More...
Engineering contractors enjoying new opportunities thanks to rail and road investment
Contractors in the engineering sector are benefitting from an increase in opportunities following a major investment in road and rail projects, alongside a growth in car sales. This is according to Giant Group, whose latest analysis of its contractor database found an increase in professionals working in the automotive and transport industries. This comes after the Government pumped £15bn into its ‘Road Investment Strategy’, whilst automotive engineering and manufacturing contractor demand has been boosted further after it was revealed that new car sales recorded their 42nd successive month of growth. More...
Contractor financial advisers in the firing line over tax avoidance scheme APNs
Contractors facing Accelerated Payment Notices (APNs) for their involvement in tax avoidance schemes are targeting financial advisers for compensation, reports Citywire. This comes after the Financial Services Compensation Scheme (FSCS) announced that it has so far received 150 claims for compensation in relation to advice to invest in the schemes which have recently been made retrospectively punishable by HMRC. “As these claims involve complex legal issues relating to the liability of financial advisers, we have taken external legal advice to help us assess these claims,” the FSCS acknowledged. More...
‘Millennial’ oil and gas contractors emphasise workplace challenges over earnings, confirms survey
Oil and gas contractors born between 1981 and 1997 – the so called ‘millennials’ – consider the need to be challenged by their work to be of more importance than their earnings. This is according to a major new survey by RigZone, which highlights that 23% of respondents consider having challenging prospects to be the most important factor when considering a role, compared to 20% who chose money. The study also found online sources to be the favoured means of obtaining work, with more than three-quarters of millennials claiming to use industry-specific online jobs boards and more than half using social media. More...
UK oil and gas sector hints at upturn with anticipated production rise
Contractors in the oil and gas sector will be boosted by news that UK oil and gas production is set to rise by 3-4% this year, despite news earlier in the week that the sector has cut its headcount by 5,500 since late last year. This is according to Oil & Gas UK’s yearly economic report, and will mark the first increase in production since output peaked in 2000, reports Reuters. This comes in spite of an anticipated marked reduction in investments, somewhere in the region of £10-11bn, as the sector strives for greater efficiency. This is a move that could lead to an increase in contractor billings as firms choose lower risk alternatives to staffing than employees. More...
Contractor calls to HMRC go unanswered, as the taxman’s customer service gets slammed
Contractors’ calls to HMRC are going unanswered, and as a result the taxman has been the target of a barrage of complaints from frustrated taxpayers through social media site Twitter. This is according to research from Citizens Advice that claims HMRC has received in excess of 11,500 messages over the past 12 months, Economia reports. The news comes after it was revealed in January that 34.5% of calls to HMRC helplines were going unanswered, a statistic that is costing the public dearly, according to chief executive of Citizens Advice Gillian Guy: “From fines for not completing a tax return in time to under or overpayments for tax credits, people can be left out of pocket because they cannot speak to HMRC on the phone.” More...
Contractor numbers continue to rise in France
Contractor numbers in France continued the trend of steady growth throughout July 2015, suggesting that contractors seeking work abroad may want to consider the French market. This is according to latest figures from French company Pole Emploi, which found contractor numbers to have increased by 2.9% to 630,600 in July 2015, compared with a year prior, reports Staffing Industry Analysts. The industrial sector recorded the strongest growth, at a rate of 4%. This was followed by the services sector (3.4%) and the construction sector (0.2%) which also accounted for 8.1% of the entire contractor workforce. More...