Contractors to benefit from late payment measures unveiled in Queen’s speech
Contractors contracting direct and who regularly suffer from late payments should benefit from measures announced in the Queen's Speech to Parliament this week. Julia Kermode, CEO of The Freelancer & Contractor Services Association said: “Planned action on late payment is particularly welcome for our sector which should give more powers for representative bodies to act on behalf of their members to challenge any unfair payment terms.” The speech also confirmed plans to freeze income tax, National Insurance Contributions (NICs) and VAT.
Contractors used as 'tax avoidance mules' by agencies abusing NIC Employment Allowance
Contractors and lower paid temps are being duped into setting up unecessary limited companies by recruitment agencies adopting an aggressive tax avoidance scheme that is exploiting the £2,000 employer's National Insurance Contributions Employment Allowance scheme. BBC News reports that one if its own investigations uncovered the scheme promoter, Anderson Group, which claims "its services are fully compliant with UK tax laws". The scheme works by an agency creating dummy limited companies with several contractors working through each company that then claims the £2,000 allowance. The BBC was told there are as many as 10,000 workers, including contractors, and hundreds of recruiters using the scheme. More...
Contractors fill skills shortages for clients unable to source key talent
Contracting is still a vital source of talent for clients desperate to fill skills gaps, according to the Manpower Group 2015 Talent Shortage Survey. The core contracting discipline of engineering is third in the global top 10 list of ‘talent that’s hard to find’, with Accounting & Finance at seventh and IT at ninth. The survey cites a lack of applicants, technical competency and experience as the top three reasons for the shortfall, and blames global employers for not doing enough to address the problem. More...
Contractors are essential to help the government enter the digital age
Contractors, particularly those with digital skills, still have an essential part to play in the public sector, claims Alan Leaman, chief executive of the Management Consultancies Association (MCA). Praising the UK for having a “world class consulting industry”, Leaman acknowledged that the effects of the economic deficit are still there, alongside a pressure to improve services and prove value for money, but that there are several areas where contractors engaged as consultants can “make a real difference”. The MCA has announced plans to engage with the Crown Commercial Service to improve the relationship between the public sector and contractors. More...
Contractors in Scotland’s finance sector enjoy fresh demand following referendum
IT and financial contractors in Scotland’s financial services sector have experienced a surge in demand as opportunities in Edinburgh and Glasgow bounce back following a slump before the independence referendum. Staffing Industry Analysts report that research compiled by recruitment firm BrightPool shows an increase in new contracts and jobs of over 20% following the referendum. Angela Hickmore, managing director of BrightPool, attributed Scotland’s financial growth to its long heritage, educated workforce and low cost base. “Financial services employers are looking to keep cost-to-income ratios under control,” said Hickmore – another indication of the efficiencies to be gained from hiring contractors. More...
Contracting in oil and gas set for a ‘positive era’ following Tory election victory
Contractors working in the oil and gas industry, both offshore and onshore, should benefit from energy policy decisions made by a new Conservative government now unfettered by Coalition, suggests Rigzone. The Conservative Party Manifesto states that the last government “encouraged record levels of investment in existing North Sea gas” and that, says Rigzone, should now materialise into further exploitation of UK hydrocarbon resources. Conservative Party members are known to favour hydrocarbons over renewable energy and this also spells good news for contractors in the sector, although may be less positive news for the environment. More...
Oil and gas contractors should step up credit checking new clients, says expert
Oil and gas contractors working directly for client firms should increase their financial due diligence before taking new contracts, or they risk seeing their client go bust without paying. Malcolm Wilson from procurement consultant Achilles told Oil Voice that: “Many companies are not taking basic steps to collect financial information from suppliers.” This is particularly worrying, considering the low oil price is causing many supply chain companies financial tension. As a result, Wilson is calling for new industry standards for collecting financial information on businesses in the oil and gas supply chain. In the meantime, contractors should conduct their own financial checks, and avoid taking on work from clients with poor credit scores. More...
Interim management contractor demand surges post recession
Interim management contractor numbers in senior positions have increased ‘substantially’ in recent years according to the Interim Management Association (IMA) Ipsos MORI survey. A report by Staffing Industry Analysts shows that the research found contractor use has grown by 93% since the pre-recession levels of 2006. Responding to the IMA’s findings, Stephen Hoban, director of Capita Professional Recruitment, gave the five reasons why high-level contractor use is soaring as: specialist knowledge, expertise without permanent headcount, not politically motivated, communication skills and a fresh perspective. More...
Contractors with property portfolios benefit from post election price bounce
Contractors with property and buy-to-let portfolios will see increasing return on their investments, as house prices remain buoyant. The Knight Frank/Markit House Price Sentiment Index (HPSI) May 2015 reports that over 20% of the UK households surveyed said that the value of their home had risen in May. While this spike is more modest than last year’s post-recession high, low mortgage rates are still a positive driver for contractors in the property market. More...
Contractors targeting retail sector clients look set to benefit from sales boom
Prospects for contractors targeting clients in the retail and distribution sector are looking increasingly buoyant, as the market gets ready for its highest sales volumes for 27 years. This is according to the findings of the CBI’s latest quarterly Distributive Trades Survey, which records positive growth for May 2015, with even higher expectations for June. Both sales and orders are set to rise at an even stronger pace in the year to June. The survey shows that, although firms are positive about the coming quarter, they are still reluctant to invest. This trend suggests that contractors will still be more appealing than committing to full time employees, particularly in digital and IT where internet sales volumes rose firmly again in the year to May. More...
Contractor service provider leads drive towards greater transparency and improved service
Contractors could be about to experience a revolution in service levels from umbrella companies, driven by professional employment solutions provider Parasol’s decision to start publishing performance data. The company is pledging a commitment to performance by ‘going public’ on service results, and will publish weekly figures for email, call and complaint responses. Ifti Ahmed, group operations director at parent firm, Optionis, admits this is a “calculated risk”, but believes that “potential risks are vastly outweighed by the benefits that come with being completely open and transparent about the impressive service levels we expect to deliver.” Service innovation is the “new battleground” in the contracting sector, concluded Ahmed. More...