Contractors need more government support: BIS Self-Employment Review
Contractors require more government support to reduce the disadvantages they experience and enhance their increasing contribution to the UK economy. This is the conclusion drawn from the recently published Self-Employment Review from the Department for Business, Innovation and Skills (BIS). The report highlights the need for a single legal definition of self-employment to achieve “simplification and clarification” over issues such as tax and National Insurance Contributions (NICs). The review, led by Julie Deane OBE, also calls for specially-developed financial products for contractors to assist with pension planning, as well as a reduction in both red tape and compliance procedures. More...
IT contractors to enjoy increasing cross-sector demand
IT contractors are set to benefit from continuous rising cross-sector demand as more firms in traditionally non-digital sectors look to drive efficiency by investing in technology. Tech Nation 2016 highlights that 41% of the 1.56m UK jobs within the tech economy now exist within non-digital sectors, with the increasingly broad-based demand contributing considerably to the accelerated rate of job creation within the industry – 2.8 times faster than that of the economy as a whole. Meanwhile, 43% of respondents identified difficulties sourcing talent as the main hurdle to achieving business growth, further intensifying contractor demand. More...
Finance contractor demand enjoys New Year recovery
Finance contractors in the capital are seeing a resurgence in demand for their services. Morgan McKinley’s January 2016 London Employment Monitor shows that demand for professionals is up by 115%, month-on-month, whilst over 60% of executives plan to increase hiring activity during 2016. “The bounce back was expected,” notes Morgan McKinley Operations Director Hakan Enver. “However, the strength of this increase does come as somewhat of a surprise.” The revival has been accompanied by a similarly strong increase in appetite for new contracts amongst contractors, with 138% more professionals reportedly active within the job market, compared with December 2015. More...
Contractors increasingly benefiting from the ‘sharing economy’
More contractors are taking advantage of the sharing economy – an industry that is set to be worth £9bn by 2025. In an article for the Guardian, deputy director of policy at the Association of Independent Professionals and the Self Employed (IPSE) Andy Chamberlain highlights how an increasing number of contractors are using online platforms to market their skills and acquire contracts. This is after 2015 saw a 30% rise in the amount of money UK businesses spent hiring talent online. “The sharing economy model is increasing efficiency and lowering the costs of doing business,” Chamberlain concludes. More...
Oil and gas contractor decommissioning opportunities to arise in Norway
Contractors in the oil and gas sector who are struggling to source UK contracts may find more luck seeking opportunities in Norway, which is set to undergo multiple decommissioning projects over the next eight years. Oil & Gas UK’s first Norwegian Continental Shelf Decommissioning Insight reports that Norway’s decommissioning market has the potential to be the second largest in the North Sea, after the UK Continental Shelf (UKCS). It is estimated that 23 projects will be undertaken by 2024, during which time decommissioning expenditure could reach £12.5bn. More...
Self-employed contractor numbers reach new record-high
The number of self-employed contractors in the UK continues to swell, as shown by the latest Labour Market Statistics from the Office for National Statistics (ONS). There are now 4.66m self-employed UK contractors, a figure that increased by 154,000 in the quarter leading up to December 2015, year-on-year. For Lorence Nye, economist at IPSE, the latest statistics highlight the importance that the government acts upon the Self-Employment Review recommendations: “With so many people making the decision to be their own boss, it’s now more important for the government to move ahead with implementing the Review’s recommendations.” More...
Government buy-to-let reforms to face judicial review
The withdrawal of mortgage tax relief for contractors with buy-to-let properties is set to face a judicial review, FT Adviser reports. The phased withdrawal of tax relief on buy-to-let properties and a hike in stamp duty were both announced during the Summer Budget 2015. However, after raising £50,000, a campaign group will be submitting an application to begin judicial review proceedings. Campaign leaders Steve Bolton and Chris Cooper argue the changes place contractors and other buy-to-let homeowners at a disadvantage compared with corporate landlords and owners of commercially let holiday homes, who have no restrictions imposed on them. More...
Construction sector stakeholders reinforce need to support contractor workforce
Construction contractors must receive more government support if infrastructure targets are to be met, claims David Jackson, chair of the construction policy advisory committee at IPSE. Recent ONS construction industry output figures show output decreased by 0.4% in Q4 2015, year-on-year, with contractors playing an instrumental part in ensuring the sector is well-equipped to manage fluctuations in demand. “We know to our cost that the ability to remain in command of a flexible workforce is often the difference between bankruptcy and success,” notes Jackson. More...
Contractor tax affairs are not being simplified enough by Government, warns ICAEW
Contractors continue to suffer from complex tax administration procedures, which the government isn’t doing enough to rectify. This is according to Frank Haskew, head of the Institute of Chartered Accountants in England and Wales’ (ICAEW) tax faculty. Economia reports that earlier this month, the Department for Business, Innovation and Skills (BIS) published a consultation on Enterprise Bill, proposing that HMRC reports on the impact that regulations would have on business. Haskew claims this would provide the government with a: “head start on recognising the burdens on businesses created by a complicated tax code”, but insists much more must be done. More...
HMRC criticised for handling of contractor tax avoidance
Contractors who engaged in tax avoidance schemes in years gone by shouldn’t be punished based on current opinion through accelerated payment notices (APNs). This is according to Paul Noble, tax director at law firm Pinsent Masons, who argues: “HMRC is moving towards being more of a regulator than a tax collector.” FT Adviser reports that HMRC expects to bring in £5.5bn for the Treasury by March 2020 through the regime, justifying its decision to retrospectively penalise contractors by claiming avoidance schemes are ‘not within the spirit of the law’. “If you don’t like the law, then change it, shut the loophole,” adds Fiona Fernie, partner at Pinsent Masons. More...