Limited company contractors caught by Employment Intermediaries reporting rules
Limited company contractors using personal service companies are caught by the Employment Intermediaries legislation reporting rules, confirms HMRC in its new guidance. As a result, contractors using agencies are required to pass on detailed personal information, and those that subcontract must report in detail on their subcontractors to HMRC. “Agencies will now be expected to report back to HMRC with a level of personal information about the contractor that is wholly inappropriate for a business to business relationship,” says Andy Chamberlain, deputy director of policy and external affairs at the Association of Independent Professionals and the Self-Employed (IPSE). More...
Scotland’s contract sector softens, as the wider UK offers contractors better prospects
The contracting market in Scotland softened during January 2015, confirms the latest Bank of Scotland Report on Jobs for January 2015. As a result, the rest of the UK may offer contractors greater contract opportunities. This is a reversal of much of 2014, during which time Scotland’s contracting sector consistently outperformed most of the rest of the UK. “Scotland’s jobs market continued to improve in January but showed signs of cooling,” notes Bank of Scotland chief economist Donald MacRae. “The number of people appointed to permanent jobs rose but temporary appointments fell.” More...
Contractors unfairly targeted by HMRC, says IPSE
Contractors are being targeted unfairly by HMRC, with the taxman turning a ‘blind eye’ towards large businesses and wealthy individuals that engage in aggressive tax avoidance. This is according to the Association of Independent Professionals and the Self-Employed (IPSE). “The way [that] HMRC [is] fiercely pursuing independent professionals while turning a blind eye to tax avoidance tactics by big business is completely unfair and is stifling the important work of microbusinesses up and down the country, which will in turn affect economic growth,” believes IPSE director of policy and public affairs Simon McVicker. More...
Contractors look set to benefit from increase economic growth during 2015
Contractors can expect to benefit from increased hiring as a result of ongoing economic growth during 2015. The latest economic forecast from the Confederation of British Industry (CBI) shows that “jobs creation continues apace” and that “lower energy prices are feeding through to lower operating costs for companies, leaving more space for investment”. The latter means more project approvals with will require contractor services. Uncertainty over the election result and eurozone are the only headwinds envisioned by the CBI that could impact negatively on contractor prospects. More...
Contractor numbers boosted by part-time self-employment
Contractor numbers have been boosted by growing part-time self-employment in the quarter to December 2014. The latest labour market statistics from the Office for National Statistics (ONS) show that the number of self-employed workers in the UK has grown by 88,000 over the last 12 months, representing an increase of 2%, with 4,501m self-employed workers now in the UK. Overall employment also rose, with the UK employment rate increasing to a joint record of 73.2% of the working age population. More...
Contractor demand to be led by private sector SMEs, shows CIPD LMO
Contractor and employee demand will be led by small to medium sized enterprises (SMEs) in the private sector, shows the latest Labour Market Outlook (LMO) from the Chartered Institute of Personnel and Development (CIPD). And according to the report, it is “private sector firms [that] continue to be driving much of the predicted growth in employment prospects”. This suggests that contractors should widen their target clients to include smaller businesses. More...
Net closing on ex-pat contractors with undeclared savings held in the UK
Ex-pat contractors domiciled in locations such as France and Norway and with undeclared funds held in the UK are at even greater risk of being found out by the taxman in their home country. Out-Law.com reports that according to HMRC, requests for information by foreign governments have increased by 45%. Norway and France have made the largest number of requests, whereas the Ukraine shows the fastest increase in requests. “The UK, particularly London, attracts many high net worth foreign nationals that come here to live or invest,” says James Bullock of Pinsent Masons, the law firm behind Out-Law.com. “Some will use the UK as a stable safe haven for their wealth, while others simply see the economy as attractive.” More...
Small IT firms, including IT contractors, have lost out on government contracts
IT small to medium sized enterprises (SMEs), including IT contractors, have lost out on millions of pounds worth of contracts as a result of a major outsourcing deal between the Cabinet Office and Capita. Computer Weekly reports that: “Some of the suppliers accuse the Crown Commercial Service (CCS – the UK government procurement agency) of a deliberate attempt to undermine their relationship with government and to pursue a policy to cut them out of the supply chain.” The suppliers have asked to remain anonymous because of fears that they may lose out on future work. More...
Limited company contractors may escape automatic RTI penalties
Limited company contractors who run their own payrolls will not be fined for delays of up to three days when filing their Real Time Information (RTI) Pay As You Earn (PAYE) returns. HMRC has confirmed that: “Late payment penalties will continue to be reviewed on a risk-assessed basis rather than be issued automatically.” However, the taxman warns that “employers with fewer than 50 employees are reminded that PAYE late filing penalties will apply to them from 6 March [2015].” More...
Oil and gas contractors with unconventional skills need to seek ex-pat contracts
Oil and gas contractors with shale gas and oil skills should target ex-pat contracts in oil and gas province outside of the UK, as a report by energy giant BP suggests there is unlikely to be any commercial unconventional production for at least two decades. However, more positively Tom Bawden writes in the Independent that “the poor prospects for developing a global shale – or “tight oil” – industry also mean the current low price of oil is unlikely to last for more than a few years”. If oil prices rise, then the UK’s oil and gas industry could enjoy a renaissance. More...