Government contractor T&S changes reflect lack of understanding, SNP politician claims
Recent restrictions on travel and subsistence (T&S) expenses tax relief for contractors are representative of a Government that doesn’t understand the complexities of the modern labour market. This is according to Roger Mullin, Treasury spokesperson for the Scottish Nationalist Party (SNP), who also warns that the private sector is likely to bear the brunt: “This is not the only area where the Chancellor has reduced the public sector balance sheet. Every time it happens, private sector employers have to redress the balance by paying people more. At a time when things are very tight in the economy, it could very well lead to a squeezing of the labour market.” More...
IT contractors to play pivotal role in driving innovation
Contractors are seen as a key solution as IT service providers look to meet the requirements of the ever-evolving IT department model. The latest report from Experis notes that 76% of companies struggle to source candidates with the necessary combination of legacy and emerging tech skills. This shortfall looks set to translate into an increase in contractor hires, with 69% of IT managers expecting to engage more with contingent staff over the next four years. “The ability of contingent staff to provide unique expertise on a short-term basis will prove essential to ensuring that the sector is able to meet demand for innovation,” highlights ContractorCalculator CEO Dave Chaplin. More...
Contractor demand in Fintech sector surges
Demand for contractors from Fintech companies is rising at a rapid rate. This is according to new research from recruitment finance provider Sonovate which shows that contract vacancies in the sector increased by 64% in the first quarter of 2016 (QoQ). Whilst the largest portion of vacancies were for IT positions, demand for consultants has increased five-fold (525%), with an average day rate of £475 available. “We’ve seen clear increases in the industry’s overall investment,” notes Sonovate co-CEO Richard Prime. “These increases have translated to a surge in advertisements for contract roles. The market for this kind of interim, project-based work is in rude health.” More...
Contractor demand picks up after volatile month
Demand for contractors in the capital increased in April, despite a subdued month punctuated by poor macro figures and uncertainty over the impending EU referendum. Morgan McKinley’s latest London Employment Monitor nods towards the UK’s flourishing Fintech sector as a significant factor behind the 11% rise in professional vacancies, month-on-month. This was accompanied by a 5% increase in professionals seeking opportunities. “It certainly felt like an uninspiring month,” admits Morgan McKinley Financial Services operations director Hakan Enver. “So the numbers were somewhat comforting and perhaps there is light at the end of the tunnel.” More...
Record number of contractor companies liquidated ahead of tax changes
Contractor limited companies were amongst the record number of solvent companies that were liquidated in March ahead of changes to tax legislation. FT reports Companies House figures which show that 2,663 solvent liquidations were completed in March, almost three times as many as the previous record of 992 in April 2015. Dividend tax hikes came into play in April, with dividends in each tax band being subject to a 7.5% rise in taxation. Revisions to the Targeted Anti-Avoidance Rule (TAAR) also made it much harder for contractors to claim entrepreneurs’ relief (ER) on capital gains. More...
HMRC urged to postpone quarterly digital tax accounts
The Association of Taxation Technicians (ATT) has urged HMRC to delay the roll out of its quarterly digital tax regime by at least a year, for fears that all will not go to plan, reports Accountancy Age. This comes after HMRC delayed its consultation on the digital accounts until after the EU referendum, which has prompted concerns that interested parties will not be granted sufficient time to respond. “We strongly believe that HMRC needs to recognise the impact of this delay by revising the timetable for implementation by at least one year,” comments co-chair of ATT’s Technical Steering Group Yvette Nunn. More...
UK contractor numbers continue to rise
More professionals are opting to go it alone as the number of contractors in the UK continues its long-term growth trend. Figures from the Office for National Statistics (ONS) reveal that the number of self-employed in the UK has risen by 182,000 in the three months leading up to March, compared with the same period last year. For Lorence Nye, economic advisor at the Association of Independent Professionals and the Self Employed (IPSE), the figures provide indication that the Government should move to support the contracting sector through improved policy: “It is now time for the Government to start implementing the recommendations from the recent Deane review on self-employment.” More...
Red tape means some contractors spend a day a week on admin
Contractors and small businesses are being stifled by red tape that is costing them on average one day a week in admin duties, the Telegraph reports. This is according to a report by the Federation of Small Businesses which claims Britain’s small business owners are spending an estimated 33 hours each month on form-filling. “Admin remains a common frustration amongst owners of smaller companies,” says FSB director Dave Stallon, who claims the findings serve to highlight the failings of the Government: “It pledged to remove £10bn worth of red tape over the course of this Parliament.” More...
Contractors and SMEs main contributors to HMRC payroll error tax haul
Contractors and small businesses were found to be the main contributors to a £737m haul for HMRC as a result of payroll tax errors, Accountancy Age reports. Research by accountancy group UHY Hacker Young found that SMEs account for more than half of the taxman’s yield following its clampdown into payroll tax mistakes, despite only accounting for 11% of total UK payroll. “Much of the (SMEs) underpaid tax is due to genuine errors,” highlights Roy Maugham, tax partner at UHY Hacker Young. “This strongly suggests the government needs to simplify its systems to help SMEs avoid mistakes.” More...
Contractors to provide feedback on OTS strategy
Contractors and relevant stakeholders have been asked to provide feedback on the Office of Tax Simplification’s (OTS) strategy for simplifying tax for the future, after it released its consultation document. As well as helping to encourage and implement simplification into tax policy, the OTS also plans to engage closely with HMRC on its digital tax regime and to give a voice to taxpayer concerns. The OTS has set out a number of questions in its strategy document that it is seeking feedback on. Alternatively, contractors can write to the OTS with their thoughts at ots@ots.gsi.gov.uk. More...