Contractors asked for input into IR35 reform
Contractors and their clients have been asked by HMRC how they feel IR35 can be better enforced in order to meet the government’s tax targets. HMRC’s IR35 Intermediaries Legislation discussion document notes that no consensus on the matter has been reached following two separate reports on the legislation. HMRC has proposed several possible options, including a ‘simpler’ test based on supervision, direction and control. ContractorCalculator CEO Dave Chaplin is sceptical: “Because IR35 is based on employment case law and therefore subjective, it is not possible to produce a simplified test.” More...
Contractor dividends not affected by income tax and NI merger plans
Contractor dividends won’t be affected by plans to align income tax and National Insurance Contributions (NICs). The Office of Tax Simplification (OTS) has been tasked with exploring closer alignment and in its Terms of Reference, states that its simplification review “will not consider the extension of NICs to non-employment income”. The OTS project to review closer alignment of income tax and NICs is due to report to the Chancellor ahead of the Budget 2016 in March next year. More...
Contractors’ views published in OTS Employment Status Report response summary
Contractors have had their say on self-employment status as the OTS has published the follow up summary of responses to its March 2015 Employment Status Report. Ambiguity over employment status was perceived to be the primary risk facing contractors, with many respondents believing a more joined up approach across tax and employment law could resolve the issue. Contractors also raised concerns over the employment status indicator (ESI) tool, while alternative structures to the proposed statutory employment test were proposed. More...
Financial and IT contractor prospects receive boost from London’s financial sector
Financial and IT contractor prospects in London’s financial centre look promising, according to the Morgan McKinley London Employment Monitor for June 2015. Job vacancies increased by 56% month-on-month, while figures show a 26% increase in professionals seeking new opportunities. Contractors in finance and IT are in particular demand, as acute skills shortages in these sectors means those with the required skillset can literally “name their price”. “All the data we are seeing shows that there is a robust market for financial services jobs in the city. It’s an assertive market,” highlights Morgan McKinley Financial Services operations director Hakan Enver. More...
Contractor availability in Scotland suffers sharp decline, worsening skills shortages
The gulf between contractor demand and availability in Scotland continues to increase as the supply of candidates for contracting roles dropped in June 2015. This is according to the Bank of Scotland Report on Jobs for June 2015, which highlighted engineering and construction as the sectors in most dire need of candidates. ContractorCalculator CEO Dave Chaplin was keen to draw the positives for contractors situated in Scotland: “The trends we are witnessing in terms of contractor vacancies and candidate supply means those contracting in Scotland won’t find themselves short of work any time soon.” More...
Contract opportunities increase due to worsening skills shortages
Contractors working in core disciplines such as IT, engineering and construction are enjoying increased contract opportunities due to worsening skills shortages. June 2015’s Recruitment and Employment Confederation (REC) JobsOutlook reports that approximately a third of contractor clients plan to hire more contingent workers over the next 12 months, with virtually all of the remainder maintaining contractor headcounts. The increase in vacancies is being attributed to improved confidence in the economy following a period of election uncertainty. More...
Contractor organisation IPSE appoints new chairman
Contractor membership organisation the Association of Independent Professionals and Self Employed (IPSE) has announced the appointment of James Collings as its new Chairman. Collings joined the IPSE Board in 2008, and will take over the position from Julie Stewart, who has held the post since May 2013. “Independent professionals and the self-employed are vital to the success of the UK economy and I look forward to taking up the mantle of representing the UK’s 4.5 million self-employed,” said Collings. More...
Interim management contractors asked for Budget survey help by IIM
Interim management contractors have been invited to have their say on the Summer Budget 2015 in a survey collated by the Institute of Interim Management (IIM). Issues raised in the survey will include the new Dividend Tax, the proposed removal of travel expenses tax relief, and the significant increase in HMRC ‘investigations’. The aim is to assess the response of interims to the changes and track the impact on the interim executive market, while the information collected will form the basis of an upcoming consultation with HMRC. The results will be published on the 1st October 2015. More...
Contractors advised to avoid Greece as a work destination
Contractors have been encouraged to avoid work in Greece despite the recent bailout agreement, as the austerity measures, high taxation and social security rates mean it remains an unappealing work destination. Staffing Industry Analysts report that contractor management specialists CXC Global believe contractors will instead be looking for assignments in high growth markets in Europe, such as Bulgaria and Hungary. “It’s difficult to predict what will happen next in the ongoing eurozone saga but it’s very likely that number of contractors operating in Greece will remain low for the foreseeable future,” highlights Charles Daw, CXC Global director of sales. More...
Contractors continue to suffer from poor HMRC service
Contractors continue to endure poor service at the hands of HMRC, after their annual report and accounts for 2014-15 documented a decline in customer service levels, Accounting Web reports. The National Audit Office (NAO) has attributed this to HMRC’s decision to cut administrative costs, while increasing its compliance work to secure additional revenues. Amyas Morse, head of the NAO, highlights that while these objectives were met: “[HMRC] made less progress in improving customer service, the standards of which still fall well short of that expected by taxpayers.” More...