Contractor quarterly tax returns debated in Parliament: Government responds
HMRC’s plans to impose quarterly digital tax return requirements upon contractors and the self-employed were debated in the House of Commons this week. Economia reports that MPs broadly agreed that digital tax accounts will ultimately prove beneficial for all parties, but highlighted numerous concerns, whilst at the same time urging for an extension to the time granted for a consultation. Amongst the issues raised were concerns over additional administrative and financial burdens for contractors, assistance over the use of software, and insufficient UK broadband coverage. Financial secretary to the Treasury David Gauke insists that HMRC: “does not underestimate the scale of changes that making tax digital represents for businesses.” More...
Contractor demand continues long-term growth trend
Contractor demand extended its trend of long-term growth in December 2015 as recent figures from the Association of Professional Staffing Companies (APSCo) reveal contract vacancies were up by 4%, year-on-year. The finance sector again proved particularly buoyant, recording a 66% increase in contractor demand. “The recruitment profession is under no illusions that contractors are the new dominant force in the labour market and the way we work is changing to reflect this,” notes APSCo Chief Executive Ann Swain, who points towards the growth trend as evidence of the rise of the ‘gig-economy’. More...
Limited company contractor tax policy to be subject to Treasury review
Limited company contractors could face tighter restrictions on tax policy as a result of a Treasury Select Committee review of the UK tax system, AccountancyAge reports. The review was announced this week by the committee’s chairman Andrew Tyrie following contention over HMRC’s £130m settlement with technology company Google, supposedly covering ten years of back tax. The review is aimed at finding ways to limit the ability of companies to minimise their tax liability, particularly with regards to corporation tax. “Tax policy must be made more practicable and the tax system more coherent,” Tyrie highlights. More...
Contractors key to overcoming hurdles posed by worldwide skills shortages
Contractors offer an immediate solution to the growing number of businesses struggling to source the sufficient talent required to progress business plans. The 2016 Talent Trends Report from Randstad Sourceright reveals that 72% of HR directors, talent and business leaders surveyed worldwide believe skills shortages have been detrimental to their business. In response, firms also appear to looking towards contractors when developing a long-term solution. 85% of respondents recommend adopting an integrated talent management approach to workforce planning which encompasses both permanent and contingent talent. More...
German contractor market reforms opposed by recruitment sector
Proposed reforms to contractor working arrangements in Germany have been opposed by international recruitment sector organisations, ResponseSource reports. The reforms propose that, from January 2017, contractors who are ’leased’ to a German firm will be classified as employees after 18 months. The Association of Professional Staffing Companies (APSCo) believes the proposed changes will be damaging for the growing German flexible workforce which is approaching 500,000. “The only way to resource a project or fill roles is by attracting freelancers. Assignments can easily last longer than the maximum 18 months, particularly on complicated technical projects,” highlights Tremayne Elson, Managing Director of APSCo Germany. More...
Financial contractor prospects buoyed by sector growth
Financial contractors look set to benefit from the ongoing growth of the financial sector, as firms look to expand operations. The Professional Hiring Index 2016 from Robert Half highlights that 58% of financial executive and leaders anticipate further job creation within their firms in the first half of 2016. Whilst roles on offer will primarily be targeted towards permanent staff, the survey notes that 99% of executives concede that it’s challenging to find candidates with sufficient skillsets, leaving the door open for contractors to aid the growth of firms short on talent. More...
Contractor victims of pension fraud hit by HMRC tax demands
Contractors who took part in “pension liberation” schemes are being ordered to repay millions of pounds of tax relief by HMRC. The Telegraph highlights that, in the three years to 2013, contractors and other pension savers “liberated” £400m from their pensions through the use of schemes run by fraudsters offering apparent tax “loopholes”. However, HMRC rules stipulate that pension savers under the age of 55 cannot access their pension unless they are in ill health. Those targeted by the taxman will have to pay up to 70% of cash withdrawn, including extra penalties of up to 25%. More...
IT and marketing contractors contribute to growth of creative economy
Contractors in the IT and marketing sectors contributed to a 29% rise in gross value added (GVA) by the UK’s creative industries between 2011 and 2014. This is according to ‘Creative Industries Economic Estimates’, a report by the Department for Culture Media & Sport, which also shows that growth in creative industries is exceeding total UK economy growth by 17%. The creative industries were worth £84.1bn in 2014. The IT and marketing sectors were found to be the main drivers of this growth, accounting for 44% and 16% of output respectively, suggesting further contract opportunities could be on the horizon within these market sectors. More...
IT contractor demand benefits from cyber-attack scare
IT contractors with cyber-security skills – or those prepared to go out and acquire them - could find exceptional demand for their services after a report found that almost half of businesses aren’t confident in their ability to verify and defend against cyber-attacks. The Annual Security Report 2016 from Cisco shows that businesses are struggling to keep pace with the increasing agility and resilience of cyber-attackers, who often operate JavaScript and Facebook scams. As a result, it is becoming a growing boardroom concern with many firms putting additional efforts and investment into online security. More...
Oil and gas contractor boost as Treasury urged to support North Sea industry
Contractors in the oil and gas sector will receive a boost if calls for the UK Treasury to cut the North Sea’s tax burden are met with a positive response. The Telegraph reports that Scottish First Minister Nicola Sturgeon has pointed towards the Treasury’s upcoming Budget in March as pivotal to the future of the faltering UK oil and gas sector. “Only the Chancellor can deliver the competitive tax regime that the sector requires at this moment,” highlights Sturgeon, who maintains that the move would help to protect investment and careers. More...