Online demand for contractors increasingly polarised by sector
Online demand for contractors is becoming increasingly sector-specific, with industries such as engineering pulling clear from construction and the financial sector. September’s Monster Employment Index shows online demand for IT contractors fell slightly, with no change for marketing and media, while management and consulting increased by 3% month-on-month. Regionally, a similar trend of polarisation is emerging, with Northern Ireland, north England and London posting the highest increases in demand. More
Contractor demand surges after Olympics as clients restart postponed projects
Contractor demand surged by 15% during September 2012 “as Britain gets back to business after the Olympics”. The latest contracting market data from the Association of Professional Staffing Organisations (APSCo) suggests that during September clients restarted projects delayed or postponed by the Olympics. IT and engineering contractors are leading the demand league tables, with both sectors experiencing 17% year-on-year growth during September. More
Contracting proves its “bouncebackability”, as demand reaches a 13-month high
Contractor demand reached a 13-month high in September 2012 alongside a 14-month high for contractor billings. “This month’s figures show that the temporary labour market has ‘bouncebackability’,” said Recruitment and Employment Confederation (REC) chief executive Kevin Green in response to September’s KPMG/REC Report on Jobs. The increase in both demand and billings suggests that supply is broadly meeting demand, but there remain strong regional variations. In contrast to APSCo’s data (above), the Report on Jobs showed the Midlands was well ahead in the contractor demand regional table, whereas London experienced falling demand. More
Public sector contractors using limited companies remain under fire from MPs
Contractors using limited companies when on public sector assignments are displaying “staggeringly inappropriate behaviour”, according to MP Margaret Hodge, who heads the Committee of Public Accounts. Hodge’s comments followed the publication of a new Public Accounts Committee report about off-payroll arrangements in the public sector, in which the BBC was singled out for its use of them. She also branded limited company contracting as “a practice which generates suspicions of complicity in tax avoidance.” More
Accountants don’t think much of progress on IR35
Only 5% of Accountancy Age readers polled reported seeing a small improvement in IR35, despite the work of the IR35 Forum, which was set up by George Osborne after his 2011 Budget. The small sample of 50 readers – presumably all or mostly accountants – did not appear to think much of IR35 at all, with 32% of them branding it ‘toothless’. And perhaps bolstering the coalition government’s reasons for introducing ‘off-payroll’ rules in the public sector, only 34% thought that IR35 was effective in catching those abusing personal service companies. More
Contractors require “a more sophisticated tax policy”, PCG warns coalition
Contractors require “a more sophisticated tax policy” or the government risks “turning off the talent tap”, warns PCG. “The jobs market is changing, not just here but across Europe,” explains PCG managing director John Brazier. “The government, rather than taking the retrograde step of attempting to push back against that change simply because it causes a few taxation difficulties, must develop a more sophisticated tax policy that changes with it.” He insists that what is required is, “A tax system equipped to deal with 21st century working.”
Support contractors rather than tinkering with employee rights, Osborne is urged
PCG’s call for a tax system that supports contracting has been taken up by ContractorCalculator CEO Dave Chaplin, in response to Chancellor George Osborne’s plans to allow firms to offer employees shares in exchange for their employment rights. “Why won’t the government acknowledge and support the brilliant flexible workforce of contractors and freelancers that it already has,” asks Chaplin, “rather than tinkering around the edges of employment and forcing many genuine employees into the unprofitable dead end of Osborne’s so-called ‘owner-employeeship’? More
Engineering and energy contractors to benefit from shale gas tax incentives
Engineering and energy contractors will benefit directly from a “targeted tax regime” currently being considered by HM Treasury and designed to encourage the exploitation of shale gas reserves in the UK. “With the shale gas industry at an early stage of development,” says the Treasury, “the Government believes that a targeted tax regime will help unlock investment.” Companies active in the sector will be consulted on what form the tax breaks should take.
Oil and gas contracting boom to come from “the renaissance of Irish offshore”?
As Ireland gets closer to achieving its aim of attracting multi-national energy giants to help it exploit its reserves, oil and gas contractors may be getting closer to a new contract boom from the republic. Tony O’Reilly Jr, who heads Providence Resources told BBC’s Radio 4 Today programme that recent finds are “hopefully the renaissance of Irish offshore”. The UK and Irish listed company expects that its newly discovered Barryroe oil field off the coast of Cork will yield 280 million barrels; and that is just one of six sites it is exploring. More [audio]