Contractor market “booms”, as new contractor numbers reach three-year high
The number of new contractors has reached a three-year high, driven by confidence in the economic recovery and growing demand, particularly for engineers, digital/creative and life sciences contractors. This is according to professional employment services provider Parasol, which has just enjoyed its best week of new joiner registration for more than three years. “Market conditions within the contractor recruitment supply chain certainly seem to be improving as the wider economy picks up,” explains Parasol managing director Derek Kelly. More...
Self-employed contractor numbers increase sharply
The number of self-employed contractors increased sharply in the quarter to August 2013, with full-time self-employed rising by 30,000 to reach 3.047m. Total self-employment rose by 33,000 to reach 4.209m. Recruitment and Employment Confederation (REC) CEO Kevin Green highlighted the importance of the flexible workforce: “New employment minister Esther McVey points out the importance of flexible working in the labour market,” notes Green. “It’s important that politicians from all the major parties don't undermine our dynamic flexible jobs market with more regulation as our labour market starts to lift off.” More...
Contractors escape liability in HMRC’s new offshore rules, but PCG warns of ICT abuse
Contractors won’t be liable for outstanding tax bills resulting from the use of offshore employment intermediaries, according to proposed HMRC rules. However, HMRC’s proposals place the responsibility for correct Pay As You Earn (PAYE), National Insurance (NI) and tax payments on recruiters instead of the end user. PCG warns that the rules fail to allow for potential abuses by clients using intra-company transfer workers. “It would have been better to see new rules on offshore employment intermediaries which address the potential for tax avoidance activity by companies engaging ICT workers,” explains PCG’s Simon McVicker. More...
Contractors still in the dark about the impact of HMRC’s new IR35 framework
Contractors have still not been provided with any data about the effectiveness of HMRC’s new IR35 framework, introduced in May 2012. “The minutes from August’s IR35 Forum meeting show that yet another IR35 Forum passed with virtually no performance data being published by HMRC,” says ContractorCalculator CEO Dave Chaplin. “The forum was set up to involve the industry in simplifying contractor taxation, but how can anyone judge progress, with such a lack of transparency from the taxman?” More...
Financial IT contractors receive double boost to their prospects
Financial IT contractors look set to benefit from both increased hiring in London’s financial sector and from the Chancellor’s deal with the Chinese to make London a global offshore centre for investing in China and its currency, the Renminbi (RM). Morgan McKinley’s London Employment Monitor shows that City hiring bounced back during September, which will result in new contracts and jobs. The arrival of new Chinese bank branches and the systems required to manage direct investments into Chinese companies and RMB trading will also require new IT projects staffed by contractors. More...
IT and marketing contractors are ‘fulfilled’, financial and accountancy contractors less so
IT and marketing contractors and employees have the highest levels of job fulfilment, with both sectors reporting 73% fulfilment, suggests a new report by recruiter Randstad Financial & Professional. In contrast, the report shows that only 42% of accountants and financial sector contractors and employees are fulfilled in their roles. Only 57% of contractors between the ages of 35 and 44 are likely to be professionally fulfilled, compared to 66% of contractors aged over 55. More...
Umbrella contractors unaffected by Thompson v Paymaster ruling, says Parasol’s Kelly
Umbrella company contractors will remain unaffected by the recent Thomson v Paymaster ruling flagged by Lawspeed. The employment tribunal judge ruled that the contractors were not in fact employed by their umbrella company, despite having employment contracts. “The case has no significance other than to continue to demonstrate that workers should be employed by companies who offer genuine employment, and have sufficient financial standing to ensure that their employees get paid,” noted Parasol managing director Derek Kelly on the case. “Death of the umbrella? Certainly not, but let's hope we are a step closer to the death of the dodgy umbrellas that do nothing more than line the pockets of their owners.” More...
Contractors to gain fresh insights into UK’s £27bn oil and gas supply chain
Oil and gas contractors will be able to gain real insights that could lead to more focused contract hunting from newly commissioned research. Industry trade organisation Oil & Gas UK has commissioned consultants Ernst & Young to “undertake further research into the economic contribution of Britain’s oil and gas supply chain to the UK”. The oil and gas industry’s supply chain is believed to be worth £27bn, and represents a lucrative source of contracts for contractors. The research findings will be published in March 2014. More...
Home Office contractors briefed on off-payroll rules, highlighting lack of clarity
Contractors working for the Home Office underwent a briefing this week by PCG’s in-house advisers and industry specialists on IR35 and the off-payroll rules. Feedback from contractors attending the session confirmed that Treasury and HMRC guidelines are unclear, and there is still considerable confusion over how the rules should be implemented. “The review by HM Treasury is extremely vague and this has led to a variety of approaches across public sector departments with varying levels of effectiveness,” explains PCG’s Andrew Chamberlain. “Clearly this is not an efficient or effective way to do business – for HMRC, the departments or the contractors themselves.” More...
Contractors can watch the Chancellor’s Autumn Statement on 4 December 2013
Contractors will find out what is in store for the sector next year by watching Chancellor George Osborne’s Autumn Statement, due to be delivered on 4 December 2013. According to HMRC, “the statement provides an update on the government's plans for the economy based on the latest forecasts from the Office for Budget Responsibility”. The statement will be published on HMRC’s new gov.uk website once the Chancellor has finished. More...