Contractors face IR35 crackdown, with 90% potentially forced into PAYE
Contractors are facing a draconian crackdown on IR35 which will shift responsibility for compliance over to clients whilst forcing 90% of personal service company (PSC) users onto their client’s payroll. The Guardian and the MailOnline report that Chancellor George Osborne is set to announce the changes in the Autumn Statement later this month. It is anticipated that 100,000 will be affected by the new rules, which would raise an additional £400m a year in tax. More...
UK contracting sector amongst best in Europe
The UK contracting sector has undergone a sustained period of growth, which looks to continue as more workers explore flexible working options. This is the conclusion drawn from numerous reports highlighting emerging trends within the contingent workforce, proving that the UK is amongst the most attractive destinations in Europe for knowledge workers. However, the body of research also highlights the refusal of policymakers to acknowledge contracting as a legitimate alternative to employment as a major challenge faced by the sector. “More people are providing services on their terms and the economy as a whole is benefitting,” notes ContractorCalculator CEO Dave Chaplin. More...
IT contractors see rising demand growth, as permanent demand dips
IT contractors have benefitted from an upswing in demand across the UK, with growth in vacancies outperforming that for permanent hires. The Tech Cities Job Watch for Q3 2015 shows that contractor demand is up by 6% nationwide, at the expense of the permanent jobs market which has recorded declining figures of 4%. Notably, 10% of major cities outside of London are looking to boost their contractor headcount, making contracting outside of the capital an increasingly viable option. The report partly attributes the migration of talent to improved cross country transport links and a rise in companies basing their core functions in other cities. More...
Contractor skills shortages worsen, resulting in a contract-rich market
Contractor skills shortages persisted during October 2015, despite a marked acceleration in agency billings, suggesting now is a good time to enter the contracting market. The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs for October 2015 shows that contractors have benefitted from a solid increase in rates of pay, as a result of growing demand, but the lack of candidates is causing increasing concerns for the UK economy. “It is clear the industry is suffering from a chronic skills shortage,” notes Bernard Brown, Partner at KPMG. “Recruiters are struggling to meet demand for roles ranging from architects to construction workers.” More...
Contractors celebrate National Freelancers Day 2015 - #NFD2015
Contractors throughout the UK were celebrating flexible working yesterday as National Freelancers Day returned. The event culminated in a dinner and awards ceremony hosted by the Association of Independent Professionals and the Self Employed (IPSE) at the Hospital Club in London’s Convent Garden where the UK’s best and brightest contractors were recognised for their contributions. “National Freelancers Day does an excellent job of affirming within the public conscience the contribution of a sector whose good work often slips under the radar,” notes ContractorCalculator CEO Dave Chaplin. More...
Self-employed contractor numbers grow by 54,000
The number of self-employed contractors in the UK has risen to 4.55m, its highest total in 14 months. This is according to the latest labour market data from the Office for National Statistics (ONS), which reveals that self-employed contractor headcount in the three months leading to September grew by 54,000, compared with the three months leading to August. Full-time self-employment was the main driver behind the growth, accounting for 48,000, showing that self-employment is being seen by more as an increasingly viable option, as opposed to a stop-gap solution. “The figures show the resilience of the self-employed sector in what is becoming an increasingly difficult regulatory environment,” notes IPSE Policy Director Simon McVicker. More...
IT and finance contractor demand sustained throughout October
Contractors in the IT and finance sectors can expect continued demand for their services. This is according to Morgan McKinley’s London Employment Monitor for October 2015, which shows that demand for professionals in the capital has increased by 7% month-on-month. Compared with the same time last year, demand is up by 28%, suggesting an increasingly buoyant economy. “The results show a return to the positive trend seen in the first half of the year,” reads the report, which partly attributes the reduction in demand throughout August and September to the summer holiday season. More...
Oil and gas contractor optimism levels rise
Contractor optimism levels within the oil and gas sector picked up slightly throughout the third quarter of 2015, although figures remain firmly in negative territory. Oil & Gas UK’s latest Business Sentiment Index reveals that respondents reported a score of minus 25 on a -50/+50 scale, an improvement upon the minus 27 reported during the second quarter. “Respondents cite the positive impact of efficiency initiatives [and] engaging with the workforce for ideas for efficiency improvements as reasons for optimism,” notes Oil & Gas UK operations director Oonagh Werngren. The survey is based on factors such as business confidence, activity levels and employment. More...
HMRC brands MP criticism as “absolute nonsense”
HMRC permanent secretary Lin Homer has responded to the Public Account Committee (PAC) suggestion that its poor customer service is a threat to its tax yield, branding it as nonsense, Economia reports. Contractors and other taxpayers are struggling to get through to customer service agents, who PAC claims are only answering 50% of calls. However, Homer claims that there is “no evidence to suggest” that taxpayers are struggling to reach HMRC my phone. Homer has also urged contractors to engage with HMRC more via online services, including the use of Twitter. More...
HMRC wilfully ignoring select committee recommendations over IR35
Contractor staffing agency organisation The Association of Professional Staffing Companies (APSCo) has accused HMRC of wilfully ignoring recommendations made within a report published by a House of Lords Select Committee, reviewing the use of Personal Service Companies (PSCs). This comes after reports that the Government is due to announce a new test shifting IR35 compliance responsibility over to contractor clients in its Autumn Statement, contrary to committee recommendations. “HMRC has not been liaising with the forum in the way that they have been told to – and in the way that they told the House of Lords that they would,” explains Samantha Hurley, Head of External Relations & Compliance at APSCo. More...