Draconian off-payroll rules due in September, reveals PCG
Contractors working within central government departments and earning over £219 per day and/or on contracts lasting six months or longer will be forced to work inside IR35 or go on their client’s payroll. According to documents leaked to PCG, the new rules will come into force on 15th September 2012, with government departments failing to comply facing penalties. “This is now attacking legitimate contractors who have done nothing wrong and are taking the brunt of a panic stricken government and an HMRC who have launched a witch hunt,” says PCG managing director John Brazier.
Financial IT contractors facing grim prospects as City jobs fall 33%
Financial IT contractors may be facing a lean summer as the jobs market in London’s financial sector continues to decline. The latest Morgan McKinley London Employment Monitor shows that vacancies fell by 33% between May and June, with 53% fewer job opportunities than in June 2011. “With recent economic indicators around the globe turning negative, a drop in the number of job vacancies being released across the City in June 12 is unsurprising,” explains Andrew Evans, Chief Operations Officer, Morgan McKinley Financial Services. “The scale of drop, however, at 33% is more of a surprise.” More...
Interim management contractor assignments jump 20% in 2012
The number of new interim management contractor assignments increased by 20% in the first quarter of 2012, with average lengths of 152 billable days (about 5 months). The Interim Management Association (IMA) Ipsos MORI survey for the first quarter also shows that banking and finance dominates the private sector interim market, accounting for 53% of all assignments. In the public sector, which remains a heavy user of interims, local authorities hold the top spot, accounting for 48% of all public sector interim assignments. More...
Clients increasingly seeking contractors with mobile and interactive skills
Contractors working in IT, new media and marketing are facing a major shift towards mobile and interactive technologies, and away from social media marketing and search engine ‘gaming’. Research by outsourcing platform Freelancer.co.uk shows that the number of mobile phone projects, including app development, posted by clients rose by 36% in the second quarter of 2012 when compared to Q1. In contrast, internet marketing assignments, such as search engine optimisation, have fallen by 7.3%. More4
IT contractor demand dominates Scottish contracting market, but growth is slowing
IT contractors continue to dominate the Scottish contracting market, alongside engineering and construction contract workers. However, June’s Bank of Scotland Report on Jobs shows that contract and temp market growth in the country is slowing. Despite falling recruiter billings, the number of new contracts advertised in Scotland continues to rise. The combination of increased demand and a higher number of advertised contracts suggests that existing contractors in the Scottish labour market may not have the right skills to fulfil the contracts available. More5
Oil and gas contractors to benefit from surge in North Sea activity
Oil and gas contractors are already benefitting from a surge in drilling and deal activity in the UK Continental Shelf (UKCS). Deloitte’s Drilling and Licensing Review of the second quarter of 2012 reports a 64% quarter-on-quarter increase in offshore drilling activity. Deal activity, where oil and gas fields are bought and sold, increased by 47% when compared to Q1. Graham Sadler, managing director of Deloitte’s Petroleum Services Group, believes the increased activity may be due to the Chancellor backing down over the energy company windfall tax imposed in the 2011 Budget.
Contractor prospects worsened by UK innovation crisis
Contractor prospects may be worsened by the ‘collapse’ in innovation investment over the last three years. A report by the National Endowment for Science, Technology and the Arts (NESTA) warns that the “UK economy also experienced a 'lost decade' of innovation, with new evidence showing that businesses had a crisis of confidence in the 2000s, prioritising cash and concrete over investment in innovation”. Contractors play a crucial role in early stage innovation businesses, providing skills and experience on a contingent basis that start-ups would otherwise be unable to access. More...
Energy infrastructure projects to generate 17,000 new jobs and contracts
Two major energy infrastructure projects are forecast to generate up to 17,000 new contracts and jobs. Energy regulator Ofgem’s proposals to upgrade the UK’s electricity and gas networks are expected to create around 7,000 roles from when the projects start in April 2013. In a separate project, the National Grid has confirmed that renewable energy developer Element Power is to build a subsea pipeline between Ireland and Wales. The project is forecast to create 10,000 contracts and jobs during the construction and operations phases.
Contractor warning as HMRC wins key tax avoidance case
Contractors using artificial or aggressive tax avoidance schemes received another warning that they may be vulnerable to HMRC action. This follows the tax agency’s Schofield v HM Revenue & Customs victory in the Court of Appeal. The court ruled that HMRC can reclaim tax and interest from about 200 high net worth individuals who used a complex scheme created by PricewaterhouseCoopers. According to HMRC, “This was an artificial, circular, self-cancelling scheme designed with no purpose other than to avoid tax. The Court of Appeal delivered a very strong judgment that such transactions do not work in law.”