‘Family business tax’ back on the contractor tax agenda
Limited company contractors sharing their business with a spouse or civil partner are facing potentially higher future tax bills following the resurrection of the income shifting agenda by the Office of Tax Simplification (OTS). ContractorCalculator CEO Dave Chaplin sees this as a retrograde step, and one unlikely to have much impact in generating revenue for the Exchequer. “The Treasury and HMRC would be better focusing their efforts on tax evasion, where the sums are considerably greater and the return on investment much more worthwhile,” he says. More…
Contractors consulted on tax reform by Office of Tax Simplification
Contractors gave their views on how changes to the UK tax regime could help or hinder the flexible workforce to senior Office of Tax Simplification (OTS) officials earlier this month. In a meeting organised by the Freelancer and Contractor Services Association, contractors provided officials with insights into the working lives of contractors. “... what was clear is that contractors, while welcoming changes to IR35, remain worried about ongoing uncertainty about the tax regime as it applies to the flexible workforce,” explains Chairman Stuart Davis. “Simplifying IR35 must not mean a constrictive ‘one size fits all’ approach.”
End to ‘gold plating’ EC directives will benefit contractors
Contractors are less likely to face the imposition of unwelcome and unnecessary legislation following the government’s commitment to end ‘gold plating’ of European Commission Directives. If carried through, the decision will mean that directives from Brussels will be adopted into UK law without amendments that could negatively impact on contractors, as has happened with the Agency Workers Regulations. Association of Recruitment Consultancies (ARC) Chairman Adrian Marlowe says: “It makes sense that, in future, directives will be directly copied into UK law rather than adding on an interpretation that many may disagree with.” More…
Contractor agencies and service suppliers to receive REC support implementing AWR
Contractor recruitment agencies and service suppliers are to receive support to understand and implement the Agency Workers Regulators from a new Recruitment and Employment Confederation (REC) support programme. REC’s objective is to prepare businesses and temporary workers such as contractors for the October 2011 implementation. Chief Executive of REC, Kevin Green, says: “The aim has always been to secure the best possible outcome for recruiters and to minimise the impact that the regulations will have on our market.”
IT Contractor demand will buck trend due to skills shortages, says survey
An uplift in demand for IT contractors with specific skills, such as project management and .net, is anticipated before the industry as a whole is forecast to recover in 2012 according to a survey by The IT Job Board. More than three quarters of IT managers responding to the survey do not believe that the recession is over for the IT sector; and 52% predict it will be 2012 before the sector emerges fully from recession. But many IT contractors are likely to buck this trend due to skills shortages in areas like .net, according to The IT Jobs Board’s MD, Alex Farrell explains.
Construction contractor agencies reprimanded by REC for being anti-competitive
Five construction contractor agencies have been reprimanded by the Recruitment and Employment Confederation (REC), following an investigation by REC’s Professional Standards Committee. The investigation was prompted when all five agencies admitted breaches of the Competition Act to the Office of Fair Trading in 2009. REC found the agencies guilty of anti-competitive behaviour and applied the maximum sanction available short of expelling the agencies from membership.
HMRC staff cuts could relieve inspection pressure on contractors
Contractors could escape the costs and stresses of unnecessary inspections as a result of planned staff cuts at HMRC. Tax Research UK’s Richard Murphy told Guardian.co.uk that: “In 2005 we had something like 100,000 working for HMRC and now we are down to 70.000.” Murphy predicts that this number will further reduce to 56,000 over the next four to five years. This much reduced HMRC is unlikely to have the resources to maintain its current levels of inspections, meaning some contractors will not have to endure unnecessary compliance visits. More…
Contractor opportunities’ growth in low carbon and environmental engineering driven by new strategy
Contractors working in the renewables and energy sectors have the chance to comment on the government’s Microgeneration Strategy through a consultation launched by Climate Change Minister Greg Barker. Small scale power generation in the UK could flourish, as it has in Germany, with the right regulatory framework and appropriate incentivisation, providing a range of opportunities for contractors to develop new products and then create and maintain infrastructure to support the UK’s embedded generation network. More…