IR35’s replacement might have ‘rougher edges’, warns OTS tax director
Contractors could find a future IR35 replacement to have its own drawbacks and limitations, according to a “Taxation” interview with John Whiting, tax director at the new Office of Tax Simplification (OTS). “As far as I am concerned, IR35 is not very effective and we need to look at what gives rise to that,” he said. “For all the hot air it generated, there were real abuses that IR35 was meant to tackle. If it were abolished, they could come out again. Maybe people have to accept that if we simplify to make things easier, it may make some of the edges rougher.” More...
Clarifying Agency Workers Regulations for contractors
With the Agency Workers Directive (AWD) and Regulations (AWR) due to be implemented in the UK by October 2011, umbrella company parasol has launched a new website that it hopes will become a forum for AWR-related debate in the contracting community. “It’s important that our industry starts to discuss the AWR now,” says Parasol’s chief executive, Rob Crossland. “We hope that the new website will act as a platform for debate, a repository of the latest news and articles and ultimately a comprehensive and authoritative source of knowledge and information on all things AWR.” More...
Futurologist Dr James Bellini to speak at PCG’s inaugural Freelance Lecture
Taking place as the culmination of a series of National Freelancers Day events on 23rd November, the first-ever Freelance Lecture to be held by the PCG will be given by futurologist Dr James Bellini. He will be outlining what he sees as the role the freelance community should play in the economic future of the UK, and discussing how this growing sector can ride the financial downturn and emerge better equipped to face the future. Following his lecture, Bellini will be joined by a panel of business figures in a question-and-answer session. The event, to be held at Stationers’ Hall in London, is being supported by Telegraph Media Group. More...
Contractor rates forecast to stabilise or grow, depending on sector
There will be no drop in contractor rates in any industry sector in the third quarter of 2010, whilst some sectors – such as Banking IT – will see rates grow by 2.8%. That’s according to the Alexander Mann Solutions’ Contingent Workforce Rate Card, which covers 12 UK industries, including engineering, telecoms and IT, banking, facilities management, human resources and finance. Matthew Rodger of Alexander Mann Solutions says: “With no drop in rates for the first time in over a year, the signs are that the... market is now finding its feet once again after a number of difficult quarters. More...
Are IT contractors in Europe’s banking sector to enjoy a mini-boom?
The rise in rates for IT contractors in the banking sector that is forecast by Alexander Mann Solutions is perhaps partially down to the current success of the banking sector. As reported by The Economist, “Europe’s banks are making money hand over fist”, which could open up opportunities for IT contractors in The City of London as well as throughout continental Europe’s banking hubs. Despite this good news, though, The Economist does remark the recovery of Europe’s banks “is far from assured”. More...
“Robust” demand for IT contractors on both sides of Atlantic
Demand for IT contractors has been robust in the US and UK for the six months to the end of July 2010, and a recovery in permanent positions has also started, according to Harvey Nash. The global recruitment consultancy, which has just opened a new branch in Broadgate, City of London, does, however, temper its positive comment by saying, “... we remain appropriately cautious given the economic climate in which we operate.” More...
Government signals determination on business taxation
The coalition government’s determination to ensure that HMRC is supported to bring in as much revenue as possible from businesses, including contractor limited companies, can be seen from the reprieve given to a costly public relations and marketing campaign. Despite the Cabinet Office’s announcement of a 52% reduction in government marketing and advertising spend, HMRC’s “paying business taxes” campaign has now been exempted from the cuts. ContractorCalculator’s CEO, Dave Chaplin, suggests contractors take this as a warning to keep their tax affairs in good order. “Whilst come contractors are relaxing their guard because of the government's review of IR35, the legislation is still in force and being applied to make up for the government’s revenue shortfall.” More...
Further good news for contractors in manufacturing
Contractors supporting UK manufacturing will be pleased to note the sector’s continued growth, which was confirmed by new Office for National Statistics (ONS) showing that manufacturing output increased by 4.1 per cent in June 2010 compared to the same month a year ago. Although ONS figures show that industrial output fell back 0.5% on the month in June, reversing the previous month’s rise, this drop was mainly due to a fall in oil and gas extraction. More...
Jobs market growth slumps to eight-month low
The latest Report on Jobs published by the REC and KPMG confirms a significant deceleration, with the rate of growth easing to an eight month low. Whilst the report relates to employees, it can be indicative of trends in the contracting sector, too. And, as KPMG’s Bernard Brown, points out, the results are uneven across sectors. “Surprisingly, engineering and construction is the sector where staff was most in demand, an indication of a sustained recovery in the manufacturing sector,” he says. “However, the sharp decline in the demand for healthcare professionals ... is a sign of things to come as the public sector prepares for more spending cuts.” More...
Government and PCG guidance on national security vetting policy
Following the recent publication of the government’s statement on national security vetting, the PCG has produced a briefing offering guidance for contractors and freelancers wishing to work on contracts that require security clearance. This is published on PCG’s website, alongside a Cabinet Office publication that offers advice to anyone subject to security vetting. More...