Contractors could be at risk from proposed money boxing rules
Limited company contractors could be impacted by potential Government measures to tackle money boxing, after it was identified as an area where aggressive tax planning is likely to occur in a recent consultation. HMRC is believed to be considering forcing contractors to wash any money out of their company that exceeds their capital requirements, so that it can be taxed as either dividends or income. This would pose numerous difficulties for contractors, notably with regards to the ambiguity surrounding what constitutes excessive funds and the fact that it would withdraw a safety net for contractors who like to hold money in reserve whilst waiting on payment from clients. More...
Contractor billings rise as firms look to mitigate Brexit impact
Contractor agency billings continue to accelerate as clients seek to hedge a potentially unfavourable outcome in the EU referendum. The Recruitment and Employment Confederation’s (REC) Report on Jobs for April 2016 shows that contractor placements have risen to a 13-month high. Rising demand for contractors has also resulted in a significant increase in average day rates, which rose to the strongest seen since July 2017. “With plenty of distractions and causes for concern for clients, contractors are fortunate enough to be benefitting from a contract-rich market,” notes ContractorCalculator CEO Dave Chaplin. “Contingent staff should seek to take advantage of these conditions whilst they still can.” More...
IT and engineering professionals enjoy contract-rich market: Irish Employment Monitor
Contractor demand in Ireland’s IT and engineering sectors remained strong in April 2016, whilst enhanced regulation in the finance sector has led to a rise in vacancies for compliance professionals. This is according to Morgan McKinley’s Irish Employment Monitor for April 2016, which shows a 2% rise in vacancies and a 6% increase on professionals entering the market, month-on-month. With most of the IT and engineering vacancies being permanent, many contractors are taking on full-time roles. The report notes that this is benefitting the contract sector where skills are in high demand and rates remain strong. More...
Contractors and SMEs at risk from “burden of red tape and bureaucracy”
Contractors and small businesses are under threat from excessive regulation and various macroeconomic factors, with roughly 370,000 business owners believed to be considering closing down over the next five years, the Telegraph reports. Global economic shocks, a potential Brexit and burdensome legislation are all contributing to difficult trading conditions, a report by Bizdaq shows. These findings correlate with those from separate research by Zurich, which indicates that business risk is at its highest level for two years. Two in five respondents to Zurich cited red tape and compliance as the biggest challenges, whilst a similar number said skills shortages were hampering growth. More...
Small Business Commissioner becomes reality for contractors
Contractors are to benefit from tougher measures to tackle late payment from clients after the Enterprise Bill received Royal Assent and became law. With it came confirmation of the new Government role of Small Business Commissioner, who will primarily focus on dealing with contractor clients who pay late – one of the biggest challenges facing contractors. “The Commissioner has been given the power to ‘name and shame’ companies which persistently pay late,” notes Chris Bryce, CEO of the Association of Independent Professionals and the Self Employed. “It’s essential he or she uses this power to drive real culture change among these companies.” More...
PR contractor demand surges due to economic uncertainty
Demand for contractors in PR and communications roles has experienced a substantial upswing as a result of uncertainty surrounding the EU referendum. According to Staffing Industry Analysts, London-based corporate and marketing communications recruitment firm VMA Group has noted a significant increase in vacancies for short-term roles during Q1 2016 as businesses hold off on hiring permanent staff until Britain’s fate has been decided. “Many firms want support to help them get past the June date and beyond, but are reluctant to take an enduring commitment while the market is unstable,” highlights Andrew Harley of VMA Group. More...
Experts express caution over legislation enabling contractors to cover strikes
Contractor agencies have spoken out against plans to enable contractors to cover for striking employees, Recruiter reports. Contractors are not currently permitted to perform the duties of employees partaking in industrial action, under Regulation 7 of the Conduct Regulations of the Employment Agencies Business Regulations 2003. However, this stands to be repealed following proposed legislation by the Government. “The concern is that workers may be put under commercial pressure to provide cover for striking workers for fear of losing contracts or work,” warns Jacqueline McDermott of Keystone Law. “There does not appear to be any proposal to introduce legislation to protect agencies or their workers in this situation.” More...
More decommissioning opportunities to emerge for oil and gas contractors
Contractors in the oil and gas sector should see further decommissioning opportunities, as activity begins to see significant growth. Rigzone cites Douglas Westwood’s ‘North Sea Decommissioning Market Forecast 2016-2040’ which predicts the decommissioning market in the North Sea alone could amount to between $70bn and $82bn within the next 24 years. Oil & Gas UK’s Activity Survey 2016 estimates 80 oil and gas fields will cease production over the next five years, whilst the UK industry will also see the removal of 144 platforms between 2019 and 2026, looking to generate and sustain contract opportunities for years to come. More...
HMRC demands could cause ‘enormous business disruption’ for contractor accountants
Contractor accountants are being put in a tricky position as HMRC seeks information on their clients. Accountancy Age reports that, between 2014 and 2015, the taxman issued 1,468 requests for accountants to release details of clients suspected to be engaged in illegal financial activity. Law firm RPC notes that non-compliance can result in criminal prosecution. However, HMRC’s demands may also breach the advisers’ duty of client confidentiality, which could lead to accountants being sued. “It can be very difficult to strike the right balance between providing HMRC with sufficient information and not compromising client confidentiality,” notes Adam Craggs, partner at RPC. More...
Contractor accountancy software provider announces cloud accounting partnership
Contractor accountancy software provider FreeAgent has announced what it believes to be the UK’s largest cloud accounting partnership deal with Danbro, one of the UK’s leading national accountancy firms. The deal will give 4,000 Danbro clients – including contractors, consultants and micro-businesses - the opportunity to use FreeAgent as their preferred cloud accounting system. “Many more of their [Danbro’s] clients will soon join those who are currently benefitting from the FreeAgent platform, which highlights our mutual commitment to supporting micro-businesses and providing them with the best possible tools to manage their accounts,” comments FreeAgent CEO Ed Molyneux. More...