Contractor umbrella companies targeted by union lobbying over pay claims
Contractor umbrella companies have been the subject of union protests and lobbying to government over claims that construction contractors are experiencing pay cuts by using their services. The contracting sector has reacted strongly, highlighting that what has happened is that tens of thousands of construction workers have moved to umbrella companies because of the Onshore Employment Intermediaries: false self-employment legislation. The falls in pay are actually due to higher taxes and not umbrella company fees:
- “Some contractors are receiving smaller pay packets as a result of these rules and are directing their anger towards umbrella companies,” explains NoPalaver Director Graham Jenner
- “What is lacking from the union campaign is a sense of balance,” highlights Parasol founder and chief executive Rob Crossland. “There has been no attempt to distinguish between unethical payroll companies that use dubious methods, and professional employment providers offering contractors and freelancers genuine support.”
- “We are increasingly concerned that the reputations of respectable businesses are being tarnished by the various media reports implying that umbrellas are a ‘con’. We strongly refute this assertion, and believe that the real issue is poor communication to workers,” adds Freelancer and Contractor Services Association chief executive Julia Kermode.
Contractors will see more on anti-tax avoidance in the Autumn Statement, says KPMG
Contractors could see further anti-tax avoidance legislation and other measures, such as restrictions on capital gains tax rules on second homes. According to KPMG, the government may be targeting technology firms with extensive UK operations but pay tax in low tax jurisdictions. This suggests avoidance scheme using contractors may be out of the firing line for the moment. Another measure predicted by KPMG that may affect contractors are moves to change the rules for second home owners over which property is their primary residence, restricting homeowners from choosing and implementing more rigid rules. More...
Contractors need greater protection from “the scourge of late payment”, believes IPSE
Contractors deserve access to stronger legal sanctions over late payment and the prompt payment code should be strengthened. These are just two of the new proposals in a policy document being launched by the Association of Independent Professionals and the Self-Employed (IPSE) at the Business Show in London. “Payments terms of longer than 30 days should be outlawed,” proposes IPSE direct of policy and public affairs Simon McVicker. “The prompt payment code should be made stronger with incentives to stick to the rules provided.” More...
Contractor tax tribunal hearings delayed, as tax case backlog reaches record levels
Contractors working through tax disputes with HMRC are suffering from a record backlog which is delaying tribunal hearings by years for more complex cases. Data obtained by law firm Pinsent Masons shows that “27,246 cases were waiting to be heard in the Tax tribunal in the year ended 31 March 2014”, more than double the number of cases in 2010. The law firm believes that it is HMRC’s “aggressive litigation strategy” that is causing the backlog to grow. In response more judges are being hired to deal with first tier tribunal cases. More...
Contract opportunities grow in Hong Kong’s financial sector
Contract numbers have increased in Hong Kong’s financial sector, offering financial and IT contractors willing to relocate greater opportunities. Research by recruiter Morgan McKinley reported by Human Resources Online’s Akankasha Dewan shows that the number of one year contracts has increase by nearly half during 2014. “In terms of an outlook for 2015, we predict that the hiring of IT, finance, operations, projects, HR and office support contractors will continue to increase,” notes managing director, Morgan McKinley Hong Kong Nick Lambe. More...
Contract and job vacancies outnumber candidates for the first time since the recession
The number of contract and job vacancies outnumbers the amount of available candidates for the first time since the recession. A report by the Recruiter shows data from job board Adzuna highlights that: “In October, there were 887,771 jobseekers compared to 936,596 advertised vacancies. That equates to a ratio of 0.95 jobseekers per vacancy, down from 1.02 in September.” This is a sign that the wider contracting and labour markets are catching up, as in many niche contracting markets, demand has outstripped supply for some time. More...
Contractors to benefit from safeguards introduced to direct debt recovery powers
Contractors will benefit from new safeguards introduced to the Direct Recovery of Debts (DRD) powers granted to HMRC that include the ability to appeal. Controversially, HMRC was to be granted powers to recover tax debts directly from taxpayers’ bank accounts without going through any formal debt recovery proceedings. Following a consultation that has seen the plans heavily criticised by professional and other organisations, taxpayers will have a face-to-face meeting with HMRC and can appeal to the county court against HMRC’s DRD assessment. More...
IT professionals brain drain to FinTech starts-up will improve contractor prospects
A brain drain of IT professionals out of traditional financial sector positions and in financial technology (FinTech) start-ups will improve contractor prospects by creating fresh skills and talent gaps to fill. Contractor Weekly’s Karl Flinders reports that: “IT professionals are drawn to start-ups by the opportunity to own their businesses and embark on exciting developments.” One IT professional told Flinders: “A lot of my friends and colleagues have left the banking industry because it is not fun anymore.” More...