Contractor support sought by PCG to fight new public sector rules
Contractors are being asked to support PCG’s new campaign to fight the public sector rules that require contractors to provide assurance that their tax obligations are being met. In an open letter to PCG members, PCG Chairman Chris Bryce compares the public sector rules campaign with the Arctic Systems case, which saw PCG members and contractors Geoff and Diana Jones win a David-and-Goliath victory over HMRC, with PCG support. PCG is calling for a judicial review of the public sector rules, and is asking contractors to come forward and lend their support.
Engineering and IT contractors to enjoy “possible rebound” in demand
Engineering and IT contractors look set to enjoy a “possible rebound in demand”, with marketing and media assignments continuing to increase. This is according to the latest employment data from the Association of Professional Staffing Companies (APSCo), which also highlights that an increasing number of permanent roles are being replaced by contractors. “What’s becoming clear from these monthly trends is that we are entering into a new era of corporate agility, where temporary workers will no longer be seen as ‘atypical’ but as the new way of working,” explains APSCo chief executive Ann Swain. More...
There may be more limited company contractors around than anyone expected
Limited company contractors may be more numerous than previously thought, according to the results of a new survey published by the Department for Business, Innovation and Skills (BIS). The Small Business Survey 2012: Businesses with no employees report shows that there are over 800,000 one-person limited companies in the UK. Previous estimates of contractor numbers by PCG have suggested that limited company contractors and freelancers number only 150,000, but the BIS survey suggests this total may be much higher. More...
Energy contractors’ prospects receive boost from new nuclear industry vision
IT, engineering and interim management contractors working in the UK’s nuclear industry and supply chain received a boost this week, following the publication of a new Nuclear Industrial Vision Statement by the government. It sets out the future of the UK’s nuclear sector over the next 40 years, “to ensure the development of a vibrant UK nuclear sector and to position the UK as a strong player in the expanding global nuclear market.” More...
Contractors could be more secure as a result of HMRC’s new defaulters rules
Contractors will benefit from HMRC’s plans to introduce new Managing Serious Defaulters (MSD) rules. Under the new measures, HMRC plans to specifically target ‘phoenix’ businesses, in which business owners become deliberately insolvent “as a way of dodging their business taxation obligations”. The new strategy, which results in defaulters having their tax affairs closely monitored for up to five years, may reduce the number of firms deliberately going bust, leaving contractors owed money.
Brighter outlook for contractors with retail sector clients
The outlook for contractors working for retail sector clients is looking brighter, says the Confederation of British Industry’s (CBI) latest monthly Distributive Trades Survey. Although sales growth was flat, ending six months of growth, it was not in decline and survey respondents are predicting improved trading conditions in the next month. This bodes well for contractors with retail sector clients. More...
Contractors warned that HMRC is targeting car mileage claims
Contractors may find the taxman is taking a detailed interest in their mileage claims, as part of HMRC’s wider anti-avoidance activities. According to a report in Fleet News: “One tax inspector spent three weeks using an online route planner to check hundreds of mileage claims made by just eight drivers.” Paul Jackson, managing director of mileage audit firm, The Mileage Consultancy, told Fleet News: “Tax inspectors start by looking at mileages because that is where they find the tell-tale signs of over-claiming.” More...
Contractors must pay tax on ‘trail commission’ received from investments, rules HMRC
Contractors who receive commission from financial firms on their investments must pay income tax on those commissions, HMRC has decided. According to Out Law News, commission from the sale of investment products traditionally went to the financial adviser in lieu of fees, but that practice was banned following the Financial Services Authority’s Retail Distribution Review (RDR) coming into force at the start of 2013. The payments are now made to the investment owners, and HMRC insists that they are annual taxable income. More...