HMRC’s IR35 tax yield fell to £430,000 during 2013/14, costing the taxpayer £170,000
IR35’s tax yield collapsed to only £430,000 during the 2013/14 tax year, from £1.1m in the 2012/13 tax year, driving HMRC’s compliance operation into the red by as much as £170,000 each year. These latest IR35 yields have been revealed in a response to a Parliamentary written question submitted by Labour MP Pamela Nash, and show that IR35 is wasting valuable HMRC resources that could be used to tackle more serious threats the taxman’s tax take. More...
Denying umbrella contractors expenses tax relief will harm flexible workforce
Preventing umbrella company contractors from claiming tax relief on their expenses will harm the flexible workforce and, in turn, the UK economy. This is according to Julia Kermode, chief executive of the Freelancer and Contractor Services Association, in response to HMRC’s discussion document that proposes a contractor expenses clampdown. “The removal of [travel and subsistence] relief will force many workers to only consider assignments within a restricted travel area, which in turn will result in a less qualified and less effective workforce,” believes Kermode.
Contractors seeing contract market stabilise, with specialist skills demand sustained
Contractors are seeing the contract market stabilising, although demand for specialist skills is sustained, shows January 2015’s Recruitment and Employment Confederation (REC)/KPMG Report on Jobs. Although still well into positive growth territory, three of the five core contracting disciplines slipped down or stayed the same in the demand league table as the contract market softened during January. IT & computing and engineering both climbed a place compared to the previous month, and were in fourth and fifth place respectively, demonstrating that specialist skills from both sectors remain in great demand. More...
Oil and gas contractors can benefit from the impact of falling oil prices, suggests report
Oil and gas contractors can turn the current oil industry downturn to their advantage through ensuring their skills match the changing needs of the industry and carefully targeting their clients. According to a report by consultants DNV GL, many oil and gas sector clients remain optimistic and plan to sustain investment despite the downturn, seeking to re-engineer processes and adopt IT solutions to control costs. The report also confirms that demand for contractors with niche and hard to source skills will to continue. More...
Contractors will benefit from new IPSE Research, Education and Training Department
Contractors look set to benefit from workshops, seminars and highly relevant research as the Association of Independent Professionals and the Self-Employed (IPSE) launches its new Research, Education and Training Department. “With the creation of the new department IPSE can ensure that it continues to lead the pack in terms of quality of research output while also offering training and education services extending our expertise to both current and future generations of independent professionals,” highlights IPSE chief executive Chris Bryce. More...
Contractors using tax avoidance scheme could challenge APNs, following court case
Contractors who have in the past or who are using tax avoidance schemes and are facing the threat of Accelerated Payment Notices (APNs) from HMRC may have grounds to challenge their APN, following a High Court ruling during the summer. Investment company Ingenious Media has successfully challenged APNs issued to over 100 of its investors by seeking a judicial review to be heard in the High Court. If successful, the judicial review could impact on all taxpayers who have APNs issued by HMRC. More...
Oil and gas contractor clients need a “fresh strategy”, says PwC
Oil and gas contractor clients need “to deploy a fresh strategy” if they are to secure a future for the North Sea oil and gas industry and continue to hire oil and gas contractors on lucrative contracts. A new report by PricewaterhouseCoopers (PwC) highlights that contractor clients must get used to working within a $50 per barrel oil price at the same time as avoiding “the short term knee-jerk reactions it has applied in previous down turns, or risk damaging the long term future of the industry”. More...
Contractors will no longer need to complete PQQs when bidding for public sector work
Contractors bidding for public sector work below a certain value will no longer be required to complete onerous and expensive pre-qualification questionnaires (PQQs). A report by Enterprise Adviser to the Prime Minister, Lord Young of Graffham has announced that PQQs will be abolished for contracts under European Union (EU) goods and services thresholds. “Research conducted by IPSE in collaboration with ComRes showed that just 13% of small businesses had applied for government contracts in the past and would consider doing so in the future,” explains Simon McVicker, IPSE’s director of policy and external affairs. “It is hoped the removal of PQQs will create a level playing field and increase the number of small businesses bidding for public sector contracts.” More...
Financial and accountancy contractor demand in Ireland grows with M&A activity
Financial and accountancy contractor demand has increased sharply in Ireland, as an increase in corporate activity is fuelling a “demand for specialists across M&A, corporate treasury and structured finance who are ACA, ACCA or CFA qualified”. Staffing Industry Analysts reports Morgan McKinley’s Ireland Employment monitor as showing that demand for professionals increased by nearly a quarter during January 2015, including IT and HR skills alongside finance. More...
Contractors with Swiss HSBC accounts caught by HMRC may face SFO investigation
Contractors who have HSBC accounts in Switzerland that were provided to HMRC may be facing further investigation by the Serious Fraud Office (SFO). Reuters reports that the HSBS/HMRC tax avoidance story that has dominated the media headlines has escalated, as the SFO and police have initiated talks with the taxman. Previously, those Swiss account holders who were identified to HMRC were encouraged to settle. Now it looks like those who are suspected of tax evasion may face criminal investigation. More...