Contractor demand in Scotland hits seven-month high
Contractor demand in Scotland reached a seven-month high during December 2012, with the core contracting sectors of IT and computing plus engineering and construction posting strong growth. The latest Bank of Scotland Report on Jobs also shows that interims in Scotland experienced slowing demand growth, but it was still in positive territory. In contrast, the financial sector is still shrinking, in line with the performance of the financial sector in the wider UK economy. More...
IR35 office holder amendments will affect very few contractors, says expert
The proposed changes to IR35 due to come into force from April 2013, and which will see office holders within scope of the legislation, are unlikely to affect many contractors. Roger Sinclair of contractor legal specialist Egos confirms that HMRC’s guidance and case law defining what constitutes an ‘office’ will exclude the vast majority of contractors and interims. A few public sector contractors are most likely to be affected. More...
Financial IT contractor prospects set to improve from the second quarter of 2013
IT contractors seeking contracts in the UK’s financial sector are likely to see their prospects improve from the second quarter of 2013. The latest Confederation of British Industry (CBI) PricewaterhouseCoopers (PwC) Financial Services Survey shows that although business volumes are predicted to decrease in the first quarter, many financial services firms are expecting a bounce-back in the second quarter. The report also predicts serious skills shortages will arise later in the year, further strengthening the contract market. More...
Stable to modest growth outlook for contractors in the manufacturing sector
Market conditions for contractors with clients in the UK’s manufacturing sector are currently stable and are forecast to improve moderately in quarter two. Another report by the CBI, this time its Industrial Trends Survey, is predicting an increase in manufacturing orders, which will improve the prospects of the manufacturing supply chain, including contractors. A large number of firms surveyed are planning to invest in product and process innovation, which may result in further increased demand for contractors. More...
Contractor champion John whiting joins HMRC board
Tax director of the Office of Tax Simplification (OTS) and Chartered Institute of Taxation Tax Policy Director John Whiting will be joining the HMRC board as a non-executive director from 1 April 2013. Through his OTS work, Whiting recommended abolition as one option to resolve the challenges of administering IR35. He also defended the use of limited companies by contractors and interims in the public sector. Whiting will leave the CIOT, but retain his position at the OTS.
Contractors with unpaid tax bills face greater chance of winding up by HMRC
Limited company contractors whose fortunes have taken a turn for the worse and are unable to meet their tax liabilities now have a greater chance of having HMRC petition to wind up their company. The latest data on HMRC’s petitions, obtained by accountant Wilkins Kennedy, shows 5,302 submitted in 2011/12 compared to 3,367 in 2010/11, representing an increase of 57%. “Businesses need to be very careful about getting on the wrong side of HMRC,” says Wilkins Kennedy partner Anthony Cork. “These figures show HMRC has become increasingly unwilling to compromise in its pursuit of missing taxes.”
Contractor tax advisers refused privacy protection by Supreme Court
Contractor tax advisers have been refused the right to claim privacy protection, which is similar to the legal privilege enjoyed by legal professionals. AccountancyAge’s Kevin Reed reports that a panel of seven Supreme Court judges voted against the proposal by a margin of five to two, claiming that extending privacy protection was a matter for Parliament and not the courts. More...
Full-time contractor and freelancer numbers surge in latest labour force data
The number of full-time self-employed contractors and freelancers increased by 27,000 in the period between September and November 2012, according to the latest labour force data from the Office for National Statistics (ONS). There was a corresponding fall of 21,000 in the number of part-time self-employed workers during the same period. The total number of self-employed workers in the UK now stands at 4,203m. More...
Core contracting disciplines facing worker shortfall by 2050
By 2050, the core contracting disciplines of IT, engineering, construction and finance will be facing a cumulative shortfall of nearly 150,000 qualified workers. And according to research by recruiter Randstad, the UK will be facing a 3.5m worker shortfall in total if skills shortages are not addressed. The shortage will be created because too many skilled workers are leaving the UK, and immigration policies are preventing skilled workers from abroad coming to the UK to work. More...
More people likely to choose contracting once the flat-rate pension is introduced
A greater number of workers will choose contracting and freelancing as a career and lifestyle choice following the introduction of the flat-rate pension in 2017. This is according to Daniel Mepham, accounting director of contractor accountant ClearSky, who notes: “The current state pension is skewed in favour of full-time, permanent employees of companies and organisations.” Mepham believes that the flat-rate pension, with a weekly payment of £144 at today’s prices, would “offer much-needed reassurance to anyone thinking of becoming self-employed”. More...