Interim management contractor market shows strong recovery and higher rates
Interim management contractors are experiencing rates and levels of demand not experienced since before the recession. Although rates are not at their pre-recession peak, the Interim Report from Executives Online shows they have reached an average of £637 per day during 2013. “What we’re seeing in the interim management sector, with slow but steady improvements in work flow and billing rates, supports the general consensus that confidence is returning to UK businesses,” notes Executives Online managing director James O’Brian. More...
Contractor demand set to increase over the next quarter
A third of contractor clients plan to increase their use of contractors over the next quarter, and 79% of organisations already turn to flexible workers such as contractors to help them meet strategic objectives. This is according to the latest Recruitment and Employment Confederation (REC) JobsOutlook, which confirms that the remaining two thirds of contractor clients plan to maintain their contractor headcounts. The predicted increases in contractor hiring may be as a result of clients experiencing capacity issues as the economic recovery gathers pace. More
Release contractors from “red tape”, demands PCG at Labour conference
Contractors should be “released” from red tape and “now is the right time for Labour to properly heed the change in working trends and devise policies which reflect the new face of work”. These were the demands PCG made of Labour leader Ed Miliband on the morning of his business speech at the Labour Party conference in Brighton. “Freelancing is a sector that needs to be set free by policy, not shackled by it,” said PCG’s Simon McVicker, at a conference fringe event later the same day. More
Construction contractors experiencing problems with late CIS rebates from HMRC
Construction contractors supplying labour only services in the construction sector who are forced to work within the construction industry scheme are still experiencing delays in receiving rebates from HMRC. Rachel Power writes on AccountingWeb that payments can take months to arrive, although HMRC continues to express “surprise” at its own delays. “We understand the impact of any delay in making repayments to customers. We are working hard to reduce our turnaround times,” an HMRC spokesperson told Power. More
Contractors and other small businesses bear the brunt of HMRC’s investigations
Investigations into contractors and other small to medium sized enterprises (SMEs) have increased HMRC’s tax take by 31% in the last tax year. This is according to data published by accountant UHY Hacker Young, which confirms that “HMRC specialist taskforces [are] heavily focusing their attention on small businesses”. UHY Hacker Young London tax partner Roy Maugham believes: “Small businesses are bearing the brunt of HMRC’s tougher approach to tax investigations”. More
Greater security for contractors as ‘phoenix companies’ face greater enforcement
Contractor services companies and agency directors who close their companies leaving a trail of debts, only to launch a new start-up days later, are facing tougher enforcement activity from the Insolvency Service. AccountancyAge’s Calum Fuller reports that law firm RPC has data showing that action against phoenix company directors has almost doubled over the last tax year. The measure may help reduce the incidence of contractors being left owed money by umbrella companies and recruiters going bust. More
Contractors finding the switch to HMRC’s Real Time Initiative (RTI) “costly and unnecessary”
Contractors and other small businesses are spending too much time on HMRC’s Real Time Initiative (RTI), which is proving to be “costly and unnecessary”. According to Financial Director, a poll by accountant HW Fisher also shows that nearly half of those surveyed said they had experienced hitches in “getting to grips” with the new system. HW Fisher partner Toby Ryland was critical of the timing of RTI’s introduction: “It's clear… that the move to RTI has caused many small businesses difficulties, during a time when they would have preferred to have been fully focused on the very tough trading environment faced by most firms”. More
Contractor recruiters are performing well, confirming positive market conditions
Contractor recruiters are performing well, with 72% of professional recruitment firms reporting an increase in fee income over the last year. This positive news, from a new UK Recruitment Index created by Deloitte and the Association of Professional Staffing Companies (APSCo), confirms that market conditions are also likely to be improving for contractors. The research shows that average billings per consultant reached £113,840. More
Contractors continue to benefit from retail recovery: CBI survey
Contractors with clients in the retail trade received another month of good news from the latest monthly Confederation of British Industry (CBI) Distributive Trades Survey. September saw a third month of sustained growth, which was broad based across a range of retail sectors. Further growth is forecast, with 22% of retailers confirming that their sales were above average for the time of year. Despite this, contractors are warned that “the retail sector is not out of the woods yet, with consumer confidence still fragile despite the rise in spending”. More
Contractors in VAT disputes with HMRC facing cashflow problems
Contractors embroiled in VAT disputes with HMRC may be facing cashflow problems because of the taxman’s rules over VAT payments. According to a report by Out-Law.com, companies are often asked to pay the VAT under dispute up front before the dispute is settled. For high earning contractors working on an annual VAT return, this could be quite a substantial down-payment. And HMRC is further worsening the situation, by failing to deal effectively with its huge backlog of unresolved cases. More