HMRC’s new IR35 framework offers no certainty for contractors now, but it leaves the door open
Most IR35 experts agree that contractors have not benefitted from HMRC’s new IR35 framework, with its business entity tests, example IR35 scenarios, helpline and enhanced compliance campaign. However, sources close to HMRC suggest it is willing to learn from the regime’s proposed 12-month trial and key figures in the tax world, including the Office of Tax Simplification’s John Whiting, urge contractors to “give it all a try”. It is possible that, if HMRC does play ball, contractors may be only twelve months away from at long last gaining some certainty over their tax affairs. More…
Unsure contractors can answer ‘no’ to P35’s service company question
Limited company contractors are not legally obliged to answer ‘yes’ to question 6, ‘Are you a service company?’, on the P35 Employer’s Annual Return, which is due to be filed with HMRC by 19 May 2012. According to HMRC, in its correspondence with Atlas Chambers barrister Keith M Gordon, contractors who are unsure of their position should answer ‘no’. More…
Contractor demand: accounting and finance up; engineering up; IT down
Demand for contractors in the financial sector and engineering continues to rise, as the ongoing economic uncertainty puts hirers off recruiting permanent candidates. That is according to the latest Monthly Trends Report from the Association of Professional Staffing Companies (APSCo). Vacancies for contractors and interims in accounting & finance and engineering rose for the third consecutive month – by 37% and 3% respectively in March. By contrast, vacancies for all professional-level contractors, such as bankers, lawyers and IT professionals, declined by 1% in March and remain at 10% below the level seen in March 2011. More…
IT contractors to benefit from London financial sector jobs recovery
IT contractors may benefit from fresh financial sector contracts in the coming months, as April saw the highest number of financial services job vacancies in six months. The Morgan McKinley London Employment Monitor for April has shown that job vacancies rose by 19% month-on-month from 2,797 to 3,339. Compared to the same time last year, this was a decrease of 48%, falling from 6,426 jobs in April 2011. IT contractors are heavily dependent on London’s financial sector for an ongoing stream of well paid contracts. More…
Contractor hiring set to increase as a result of volatile labour markets
Over a quarter (27%) of new roles created in 2012 will be contracts, in what is forecast to be a volatile labour market, according to the latest Chartered Institute of Personnel and Development (CIPD) Labour Market Outlook. The total of new contract and temp roles forecast for 2012 may rise to 35% of the total in the public sector. Overall private sector hiring confidence is strong, with the manufacturing and production sectors likely to offer increasingly positive new contract prospects. More…(PDF)
Interim management contractors won’t go on the public sector payroll
Forcing interim management contractors to join the public sector payroll could backfire spectacularly on the government, costing the taxpayer substantially more to access badly needed skills and depriving the public sector of some talent entirely. This stark warning comes from Interim Management Association chairman Jason Atkinson, in an article published on Guardian Professional. “Many interim managers will be extremely reluctant to do this work in the public sector if they are forced to go on the payroll rather than invoice directly to their client,” Atkinson says. More…
Government must do more to support UK manufacturers and contractors in the sector
Contractors and their manufacturing business clients need greater practical support from government if the UK’s sector is to complete with other strong or growing industrial nations. Accountants BDO has published a new report that outlines what practical measures would bring manufacturers back into the heart of the UK economy. In an accompanying survey, just 26% of manufacturers believe the government is adopting the right strategies to support and develop UK manufacturing. Skills shortages are identified as an area requiring greater government intervention. The ‘bright side’ for contractors is that clients lacking in-house skills are likely to turn to contractors having the right skill sets, at least in the short-term. More…
Self-employment reaches another record high, as ever-more workers choose contracting and freelancing
UK self-employment reached another record high during the January-March 2012 period, hitting 4.165m people – an increase of 91,000 over the previous quarter. The latest Labour Market Statistics from the Office for National Statistics show that the self-employed now account for 14.2% of the UK’s workforce, demonstrating that more workers are choosing contracting and freelancing. The headline unemployment rate decreased by 45,000 over the quarter, with all of the 105,000 jobs created in the first three months of 2012 being part-time. More…
HMRC on track to deliver service improvements to contractors – says HMRC
Contractors should expect to experience ongoing service improvements from HMRC in key areas such as P35 penalties, bereavements and mail handling. In its latest update on the progress it is making on the Joint Initiative on HMRC service delivery, the tax gathering agency highlights how it has sent reminders before P35 deadlines and P11D(b) deadlines, as well as improving communications with contractors’ agents. A further initiative, one recommended by the House of Commons Treasury Committee, will see HMRC commit to performance measures, although these have yet to be published.