IR35 will not change until at least April 2017, confirms HMRC
Contractors won’t see any changes made to IR35 between now and April 2017 at the earliest, ContractorCalculator has learned. HMRC confirmed at the most recent IR35 Forum meeting on 15 December 2015 that no alterations to IR35 will be written into the Finance Act 2016, meaning no new measures will be in place during the 2016/17 tax year. “The outcome is certainly significantly better than many contractors were anticipating,” highlights ContractorCalculator CEO Dave Chaplin. “It looks like the Treasury may be considering the significant tax yield generated by the changes to the dividend tax before making any further decisions over IR35.” More...
Contractors to gain improved benefits and greater sector insight from IPSE
Contractors are to benefit from numerous measures implemented by the Association of Independent Professionals and the Self Employed (IPSE) over the next twelve months. “We are now getting the measures in place to achieve our goals,” IPSE chairman James Collings told ContractorCalculator, highlighting the new research carried out by the IPSE-supported thinktank and improved access to benefits as two significant measures that will benefit members. Collings is also optimistic over IPSE’s push to secure maternity pay for contractors: “[Contractor maternity pay] is within the scope of the self-employment review which we called for, so the Government is taking a really serious look.” More...
Contractor thinktank to aid contracting sector progression
A recently-formed thinktank developing research into contracting is set to play a prominent role in the contracting sector’s progression. The Centre for Research on Self-Employment (CRSE) aims to drive awareness of the value of contractors, whilst helping to influence and inform policymakers, contractors and clients alike. “We want to change the perception of contractors,” notes CRSE chairman Professor Andrew Burke, who explains that a lack of authoritative research into contracting, as well as little recognition for contractors, led to the thinktank’s formation: “Contractor’s will typically plug skills gaps and enhance the overall team performance, but ultimately, they’re drivers of innovation and change.” More...
Self-employed contractor numbers reach record high
The number of self-employed contractors in the UK has reached an all-time high. This is according to the latest figures published by the Office for National Statistics (ONS) which show that the UK’s self-employed headcount rose above 4.6m in the three months leading to October, reflecting a 71k increase year-on-year and a 94k improvement on the previous quarter. The rise in self-employment has also supplemented another record high, in terms of overall employment. “Today’s figures show the UK economy is edging closer to full employment, due in large part to the surge in self-employment over the last ten years,” notes IPSE CEO Chris Bryce. More...
Contractors to submit quarterly tax returns from April 2018
The Government has revealed further details concerning plans to request quarterly tax returns from contractors over the coming years. In a document titled: ‘Making tax digital’, HMRC highlights that quarterly tax returns are set to be implemented from April 2018, as part of its new digital tax initiative. HMRC claims the new arrangement means contractors will “find it easier to understand how much tax they owe, giving them far more certainty over their tax position.” However, the reformation has come under recent scrutiny, with multiple contracting stakeholders arguing that it will place an unnecessary burden on contractors. More...
Contractor accountants targeted by aggressive HMRC measures
Contractor accountants have been subjected to aggressive letters from HMRC, implying they are supporting tax avoidance without supplying evidence, Economia reports. This is according to law firm RPC, which claims the letters suggest that accountants could be included in a HMRC “program of work” if they fail to respond. “The aggressive approach towards accountants is indicative of HMRC resorting to ever more desperate measures in their efforts to bring in more tax,” claims Adam Craggs, partner at RPC. HMRC has claimed the letters were part of a routine series of communications to agents with clients who have had previous involvement with tax avoidance schemes. More...
Contractors in demand, as UK outsourced contracts value increases
Contractors are being viewed by clients as increasingly popular alternatives to employees after a recent report revealed a steep upswing in the value of outsourced contracts in the UK. The Business Services Association (BSA) study, titled: ‘The use of business services by UK industries and the impact on economic performance’, shows that £2.2bn of outsourcing contracts were signed in Q3 2015, 69% more than in the same period in 2014. “There is no reason not to expect this trend to continue,” highlights BSA Director of Policy Melanie Maxwell Scott. “Outsourcing is an important measure in helping the UK’s flagging productivity and plays a major role in our future success.” More...
Business migration contributes to declining contractor demand in the capital
Contractors in London suffered from a substantial dip in demand during November, which saw a 32% decrease in opportunities, month-on-month. This is according to Morgan McKinley’s latest London Employment Monitor which shows that year-on-year figures also cooled by 13%. Whilst disappointing, a portion of these declining figures is being attributed to business migration away from the capital. “Employers are going rural which makes sense from a cost and recruitment point of view,” notes Hakan Enver, Operations Director at Morgan McKinley Financial Services, who highlights significant growth in finance sectors in Liverpool and Birmingham. More...
Contract opportunities to arise from shale gas industry
Contractors in the oil and gas sector could be set to benefit from the emergence of the shale gas industry in the UK, which is set to generate thousands of jobs, Rigzone reports. The ‘Final Report’ from the industry body The Task Force on Shale Gas estimates that the shale gas industry could create 74,000 contract and job opportunities in the sector. However, it does note that a sufficient number of exploratory wells will first need to be drilled in order to provide a more accurate estimate of the amount of gas that is economically recoverable. More...
IT contractor growth prospects look to continue upward trend
Contractors in the IT sector can expect demand for their services to continue to rise in 2016, albeit at a moderated pace. This is according to TEKsystems’ annual survey of IT leaders which shows that 41% of IT leaders expect to increase their contractor headcount over the next year, whilst 8% intend to reduce their number of contingent staff. This comes in spite of the findings that the contractor share of the IT workforce is expected to decline from 23% to 20%. Programmers, developers, security and software engineers can expect to be sought after, with these roles deemed the most difficult to fill. More...