Contractor hiring prospects strong over next quarter
Contractor hiring prospects are looking strong over the next quarter as business confidence in some sectors of the economy reaches record highs. The latest BDO Business Trends Report shows that optimism in manufacturing firms rose to a new all-time high in January 2014, with services also showing a marked increase. “UK business confidence has hit record highs as we enter 2014,” explains BDO partner Peter Hemington. “Companies are raising headcounts in response to rising client demand.” More...
Contractor market growth could be export driven
Contractors could increasingly find themselves supporting UK exporters, and supplying their own services to clients outside the UK. The British Chamber of Commerce (BCC)/DHL Trade Confidence Index shows that 34% of exporters plan to increase headcounts over the next quarter, and 72% of exporters are looking to increase overseas sales. “There continues to be a high level of demand overseas for ‘Brand Britain’,” notes DHL Express UK and Ireland CEO Phil Couchman. More...
Urgent need for IT contractors with web and mobile skills in Irish financial sector
IT contractors are urgently required to help maintain the recovery of the Irish financial sector. The latest Morgan McKinley Irish Employment Monitor shows that the professional jobs market has bounced back during January 2014, generating the need for IT infrastructure to support it. “Opportunities for IT contractors within the area of web and mobile technologies continue this year,” says Morgan McKinley chief operations officer Karen O’Flaherty. “Contractors who are in the position to start immediately are sought after as upcoming project deadlines within organisations require urgent talent acquisition. This has increased contractor rates and we expect to see this trend continue over the coming months.” More...
Online contractor accountancy is reaching the mainstream contracting sector
Online contractor accountancy has begun to move beyond early adopters and into the contracting mainstream. inniAccounts managing director Matt Poyser says a combination of new contractors with higher expectations alongside existing contractors more confident about cloud-based services is fuelling demand. “The market for online apps has matured massively over the last four to five years. This new breed of contractors can understand the benefits cloud services can offer, and are making the connection and seeing how it can apply to accounting,” notes Poyser. More...
Contractors should avoid dividend waivers in some circumstances, confirms HMRC tribunal win
Contractors using dividend waivers as part of their tax strategy have received a shot across their bows following a recent tax tribunal win by HMRC. BDO tax director Jeff Weber writes on AccountingWeb that in Donovan & McLaren v HMRC the taxman challenged the reallocation of income between shareholders by applying the settlements legislation. The First-Tier Tribunal found that two directors waiving dividends to give their wives a greater share of the profits could not be commercially justified and was a ‘settlement’. More...
Construction contractors benefit from “sharp” increase in commercial activity
Construction contractors are benefitting from a “sharp” increase in activity in the UK’s commercial property development sector. The Savills Commercial Development Activity index showed private commercial growth during January 2014 as the “second-strongest in survey history”. The number of public sector projects continued to grow but at a slower pace, demonstrating that the public sector is still a viable market for contractors to target. More...
Contractor views sought by PCG on Scottish Referendum debate
PCG is seeking the views of its contractor members on the debate over Scottish independence. “We will be actively engaging with members, businesses and politicians in the lead up to the debate through a range of events across Scotland,” explains PCG director of policy and public affairs Simon McVicker. “It is our aim to clarify what independence could mean for our members and the effects of a ‘Yes’ vote on how they do business – both in Scotland and with the rest of the world.” The survey closes on 28 February. More...
Contractors targeting Swiss contracts may encounter future visa issues
Contractors targeting Swiss contracts in the future may encounter work visa issues following the results of a recent referendum calling for tougher immigration controls. Switzerland has bilateral freedom of movement agreements with the European Union, allowing UK contractors to work at will on Switzerland-based contracts. However, according to BBC News, the referendum result “invalidates the Swiss-EU agreement on freedom of movement”, which means the existing treaties must be renegotiated. More...
HMRC targets London, East Anglia and South Wales-based contractors “who hide their wealth”
Tax evading contractors and their contracting businesses based in London, East Anglia and South Wales are the latest target of one of HMRC’s compliance campaigns. The taxman “aims to tackle people with offshore accounts and those living lifestyles beyond their obvious means through assets from undeclared income.” HMRC estimates it will recover £2.4m from the exercise. More...
Contractors gain more time over RTI penalties
Limited company contractors failing to grapple with the complexities of HMRC’s real time information (RTI) initiative will have more time to get their submissions and payments right before penalties start to kick in. Originally due to start in April 2014, HMRC has announced that it will stagger the introduction of penalties over the next 12 months, allowing contractors who run their own limited companies more time to get systems into place. More...