Financial IT contractors benefit from upturn in City hiring
Financial IT contractors should see the benefits of an increase in hiring in London’s financial centre, suggests the latest Morgan McKinley London Employment Monitor. Vacancies increased by 21% during June, when compared to the previous month. “After a quieter period over Easter, Q2 has seen a gradual rise in job availability, with three consecutive months of increasing numbers of new jobs being released,” notes Morgan McKinley Financial Services operations director Hakan Enver. “This is a positive sign, although tempered by the lower level of hiring compared to June 2012.” More...
Contractor vacancies in Scotland reach 21-month high
Contractor vacancies in Scotland grew at the fastest pace for 21 months, with pay rates increasing at a pace not seen since before the recession. June 2013’s Bank of Scotland Report on Jobs shows that contractor demand grew across all core sectors, with the exception of interims. The demand for IT and computing contactors reached a 12-month high, which is consistent with video games capital Dundee experiencing the fastest growth in temp billings. More...
Contractors retain opt-out from proposed employment and recruitment legislation
Contractors will still have the option of opting out of proposed new recruitment sector legislation, according to a consultation response published by the Department for Business Innovation and Skills (BIS). Recruiter reports that the proposals retain a provision “for individuals who are limited company contractors to opt out of the regulations and engage with employment businesses and employment agencies, in a business to business relationship”. More...
Contractors now subject to new laws: GAAR and new rules on office holders
Contractors are now subject to two important new laws now that the Finance Act 2013 has received Royal Assent: the General Anti-Abuse Rule (GAAR) and the new IR35 rules about office holders. GAAR is designed to provide HMRC with the tools to tackle contrived tax avoidance schemes, which may impact on contractors using aggressive and offshore tax strategies. The change to IR35 legislation means that office holders will have income tax liabilities under IR35. However, the definition of an office holder is not clear, and this measure is unlikely to affect many contractors. More...
Expat contractors’ residency status may change as new test becomes law
Contractors living and working overseas may become affected by further new legislation which became law when the Finance Act 2013 gained Royal Asset. According to the Chartered Institute of Taxation (CIOT), the new statutory residency tests are all “about providing certainty; there is a real need for simple guidance for those who do not have advisers, particularly in terms of what records need to be kept to ‘prove’ a position”. The provisions took effect from 6 April 2013.
Full-time self-employed worker numbers bounce back during May 2013
Self-employed worker numbers increased by 11,000 in the quarter to May 2013, reversing the fall in the previous quarter. However, the overall self-employment count dropped by 18,000 as a result of a sharp fall of 39,000 in the number of part-time workers. The Labour Market Statistics July 2013 release also show that unemployment has fallen, and the number of people in work has increased. “[The] figures are a positive sign that the countdown to UK jobs market ‘blast off’ has started,” says Recruitment and Employment Confederation (REC) director of policy and professional services Tom Hadley. More...
IT contractors may have easier access to government contracts following OFT probe
IT contractors may be in a stronger position to win government work either directly or as part of major vendor supply chains. According to Out-Law.com, an Office of Fair Trading review of government information and communication technology aims “to ensure that there is healthy competition in the market”. Technology giants are still likely to lead major public sector projects, but may open up their supply chains to smaller business, such as limited company IT contractors. More...
Contractors unable to pay tax bills may have assets seized by HMRC
Contractors who are in tax arrears with HMRC and unable to pay their tax bill may be facing distraint proceedings. Research by law firm Pinsent Masons published on Out-Law.com shows that winding-up petitions to close down companies owing tax fell by 42% in the last year. In contrast, Pinsent Masons says there has been a corresponding increase in distraint proceedings, which allows HMRC officers to seize the assets of companies owing them unpaid tax. More...
Contractors owing PAYE income tax and NICs to HMRC may be off the hook
Contractors with unpaid Pay As You Earn (PAYE) income tax and National Insurance Contribution (NICs) over the last seven years may find their liability ‘foregone’. The Telegraph’s Roland Gribben writes that HMRC has foregone a total of £950m in the run up to its PAYE Real Time Initiative (RTI). HMRC claims RTI had nothing to do with the write-off, but tax advisers have told Gribben that HMRC is overstretched as a result of RTI and does not have the resources to collect the outstanding debts. More...
Contractors should experience improved service from HMRC: NAO impact statement
Contractors should be receiving improved service from HMRC, says the National Audit Office (NAO) in its most recent impact statement about the taxman. The NAO published a critical report in December 2012 stating that HMRC delivered poor value for money and making suggestions about how taxpayers’ service experience could be improved. Since then, the NAO confirms that HMRC has made commitments to reduce waiting times and replace expensive call centre numbers. More...