Contractor prospects buoyed by rising consumer confidence
Contractors can be cautiously optimistic about improving prospects across the core contracting disciplines of IT, engineering, energy and oil & gas over the next 12 months. The Recruitment and Employment Confederation’s (REC) JobsOutlook for June shows that hiring intentions over the next quarter and the next 12 months are strong. “Consumer confidence is rising slowly, and the impact of that should filter through to businesses in a few months,” explains REC research director Roger Tweedy. More…
Rising consumer demand may lead to increased contractor demand
Improved retail performance driven by rising consumer demand could have a positive knock-on effect for contractors. The Confederation of British Industry’s (CBI) latest monthly Distributive Trade Survey shows retail growth at its fastest since December 2010, with 58% of retailers reporting that sales volumes are up on a year ago. Despite these positive results, sales volumes are still below average for the time of year. If not for the double-dip recession and eurozone crisis undermining consumer confidence, sales would be higher. Judith McKenna, Chair of the CBI Distributive Trades Panel and Asda Chief Operating Officer explains: “…uncertainty over the economic outlook [is] still putting a brake on consumer spending across the whole retail sector.” More…
Contractors increasingly turning to social media and networking to win contracts
Contractors and clients are steadily increasing their use of social networking to connect contracts with candidates. This is according to a new report by executive and interim recruiter Executives Online. It says that during 2011/2012, 17% of interim management contractors and executives had found a contract or job using social networking, up from 14% in 2010. LinkedIn dominates the contracting social networking scene, with 88% of those surveyed claiming to use the network in their professional life. More…
UK contractors operate in one of the highest tax regimes of the G8
Contractors working in the UK are operating in one of the highest tax regimes in the G8, with the UK government skimming 34% of Gross Domestic Product (GDP) in tax. This is according to research by accountant UHY Hacker Young, which shows that Russia has the lowest tax regime at 19% of GDP, followed by Japan (23%), the USA (24%) and Canada (32%). In tax terms, the UK is only competitive when compared to its European neighbours, Italy, Germany and France. which average at 43.4% of GDP.
Contractor tax avoidance schemes should be targeted under existing laws – CIOT
Aggressive tax avoidance schemes targeting contractors should be tackled by using existing financial services mis-selling rules, according to the Chartered Institute of Taxation (CIOT). Its president, Patrick Stevens, warns: “We need to consider the nature of the schemes that claim to wipe out income tax. Many people in my profession believe that most of them simply do not work.” Stevens also calls on government to properly resource HMRC “to track down and deal with schemers and evaders quickly and efficiently.”
Contractors seeking to grow their business can now access HR on a flexible basis
Contractors growing their contracting business and taking on employees can now access human resources management and employment law support on a flexible basis. ClearSky HR, a new, scalable service from contractor accountant ClearSky, adopts a similar model to its sister accountancy company. This means that as a contractor’s business grows and its HR needs become more complex, it can access an increasing range of services. More…
Interim managers’ input sought over directors’ remuneration reporting
Interim management contractors delivering non-executive director and high-level management services have the opportunity to make their views known via a new consultation over directors’ pay rules. The consultation on revised remuneration and reporting regulations published by the Department for Business, Innovation and Skills (BIS) is seeking to give shareholders of large businesses more say into executive pay and boost transparency. The closing date for the consultation is 26 September 2012. More…
Contractors warned over P11D deadline
Contractors who have received expenses and benefits from their limited company or umbrella company in the 2011-2012 financial year are required to submit a P11D by 6 July or face an automatic fine. The only exceptions are for those contractor limited companies and umbrella companies with a dispensation from HMRC, but even with a dispensation a cut-down version of the form must be submitted. According to HMRC, penalties are “calculated at £100 per 50 employees for each month or part month you delay filing your return”. Contractors who have not yet received the form to sign should contact their accountant or umbrella company urgently. More…
HMRC Agent Update provides valuable summary of tax issues for contractors
Contractors keen to stay abreast of the latest tax and HMRC service issues can subscribe to HMRC’s Agent Update. Published bi-monthly, it includes a summary of all the key tax news, HMRC service updates, consultations and commentary for events over the previous two months. The June issue includes updates on penalties for contractors using offshore schemes, rule changes for ‘non-dom’ contractors and the latest news on the alternative dispute resolution (ADR) trial for small businesses.