Contractor demand to receive boost from buoyant economy
Contractors could benefit as a result of promising economic conditions, with a surge in hiring of contingent staff looking likely amidst a wave of employer optimism. This is according to the Recruitment and Employment Confederation’s (REC) JobsOutlook for September 2015, which reports that 98% of companies are set to either maintain or increase their contractor headcount. This comes after 74% of businesses reported greater confidence in the current economic climate, with many keen to maximise productivity through hiring contractors. Contractors with professional and managerial skills, as well as those with technical and engineering skills, can expect to be in particular demand. More...
Contractor skills shortage could stunt Scotland’s economic growth
Contractor skills shortages in Scotland are threatening the country’s economic growth, as demand for highly skilled contingent staff continues to outstrip supply. The deficit is particularly severe in Dundee’s video gaming centre, while Aberdeen’s oil and gas industry is the only sector with a surplus of candidates, according to the Bank of Scotland Report on Jobs for August 2015. IT & computing came in second in the demand league table, with engineering & construction in third. “These results suggest the Scottish economy continues to grow but at a lower rate than this time last year,” warns Donald MacRae, Chief Economist at Bank of Scotland. More...
IT contractors with niche skills in high demand, says study
Contractor agencies recruiting in the IT industry are reporting difficulties finding suitable candidates for specialist positions, despite a buoyant market, suggesting that contractors who invest in broadening their skillset can benefit from increased demand for their services. This is according to research by Comensura, which revealed a shortfall in candidates with the niche skills required for roles in IT development and security. “The IT contractor workforce is flourishing and competitiveness is at a premium. It is important for contractors to seek out gaps in the market in order to ensure they stay in high demand,” highlights ContractorCalculator CEO Dave Chaplin. More...
Contractors invited to take part in survey influencing future legislation
Contractors are being encouraged to take part in a landmark survey which is set to impact future legislation relevant to the contingent workforce. The questionnaire has been compiled by Julie Deane OBE, founder of The Cambridge Satchel Company, after she was appointed by PM David Cameron in July to run the independent review into self-employment. The news was welcomed by Chris Bryce, chief executive of the association of Independent Professionals and the Self Employed (IPSE): “It’s great the review will tackle the crucial issues affecting the self-employed, including saving for retirement, maternity pay and securing a mortgage.” The survey will be open until 8th November 2015. More...
Contractors involved in tax disputes recipients of HMRC ‘nudge’ letters
HMRC is putting pressure on contractors involved in tax disputes through the use of ‘nudge’ letters, in what has been described by city law firm RPC as a backhanded move designed to circumvent the judicial process, reports AccountingWeb. Rather than sending correspondence to the appointed lawyer or accountant, letters are instead being sent directly to contractors. “Not only is this tactic designed to pressurise taxpayers into settling their dispute, it also demonstrates just how far HMRC is prepared to go in its attempt to persuade taxpayers not to pursue their dispute,” explains Adam Craggs, head of RPC’s tax disputes team. More...
Mexico presents potential future oil and gas contracting destination
Contractors struggling to secure North Sea contracts could consider Mexico as a newly opened market after UK subsea engineering firms announced a trade mission to explore emerging opportunities in the country’s oil and gas sector. It will be led by industry body Subsea UK and will introduce more than 25 firms to the Mexican oil and gas market in an effort to promote international partnerships, reports RigZone. “UK companies are quickly realising that they need to look beyond the North Sea and capitalize on the benefits to be gained from expanding into international markets,” notes Subsea UK Chief Executive Neil Gordon. More...
APN scheme removes incentive for HMRC to progress investigations
Contractors are being left in tax limbo as HMRC’s accelerated payment notice (APN) scheme has removed the taxman’s incentive to progress investigations once the disputed tax has been paid. This is according to law firm RPC, who claim that almost a quarter of HMRC’s tax investigations remain unresolved after 12 months, reports International Advisor. This is creating a substantial burden for contractors as they wait for a resolution. “Those being investigated will have to bear the burden of the costs associated with dealing with HMRC, and this can entail substantial professional fees,” highlights Adam Craggs, head of RPC’s tax disputes team. More...
HMRC issues guidance for contractors acting as employment intermediaries
Contractors who are sourcing work for other contingent staff are being encouraged to take note of new guidance published by HMRC regarding employment intermediary status, in order to avoid a tangle with the taxman. The guidance highlights how one qualifies as an employment intermediary, as well as detailing the intermediary’s tax and National Insurance obligations. Employment intermediaries have to engage special ‘agency’ rules, which mean they would have to operate PAYE as if the workers supplied are their employees. The payments the worker receives would be treated as employment income. More...
Scottish rate of income tax explained for contractors in Scotland
Contractors who live in Scotland will have to adapt to the Scottish rate of income tax (SRIT) which comes into effect on 1st April 2016. While the UK rate will be reduced by 10p in the pound across all bands, it is yet to be decided what rate the Scottish Parliament will decide upon. HMRC are working to deem who qualifies as a Scottish taxpayer by determining where the individual’s main residence lies, meaning contractors whose home is in Scotland but who operate mostly south of the border will need to pay SRIT. More...
Contractor loan scheme members close to HMRC settlement deadline
Contractors who have engaged in ‘contractor loan’ tax schemes have less than a week left to finalise settlements with HMRC, as the extended September 30th deadline approaches. HMRC estimates around 16,000 contractors to have been involved in the ‘particularly aggressive’ tax avoidance schemes. “The vast majority of those involved in contractor loans did not fully appreciate the risk they were taking when they were sold the schemes. It seems HMRC is taking that into account with the terms on offer,” notes Dominic Arnold, Head of Tax Investigations and Disputes at Moore Stephens accountancy firm. More...