Contractor maternity pay and infrastructure addressed at 2015 party conferences
Contractor access to maternity pay and improved infrastructure were the two biggest talking points for contractors to be drawn from the autumn 2015 party conferences. Chancellor George Osborne announced plans to improve rail and road links with the formation of the National Infrastructure Commission, which was warmly welcomed by contracting sector representatives. Osborne also announced that the Treasury would be devolving the power to set business rates to local councils, which could have positive implications for contractors. Meanwhile, Labour leader Jeremy Corbyn chose to shine light on the contingent workforce and argued that contractors should be granted access to statutory maternity and paternity pay in his speech in Brighton. More...
Increased contractor headcount not driven by recession, research confirms
Sustained contractor number increases in the UK have been due to structural changes to the economy, and not a result of the recession, a recent study confirms. The Post Crisis Growth in the Self-Employed: Volunteers or Reluctant Recruits?, reveals that conversion to contracting has largely been a result of perceived improved local business opportunities and independence-related motives on the part of workers. The study helps to dispel the myth that people are simply turning to contracting as a better alternative to being unemployed. More...
Limited company contractors major contributors to 2013-14 Tax Gap
Limited company contractors and other small to medium sized enterprises (SMEs) are supposedly amongst those who are largely responsible for nearly half of the Tax Gap, according to HMRC. Although the tax gap margin dropped to 6.4% from 6.6% the year before, the overall figure remained at £34bn, reflecting only a marginal improvement. Notably omitted from the Measuring Tax Gaps 2015 document was any mention of IR35. “Considering IR35 should be generating nearly half a billion pounds of tax each year but doesn’t, I’m astonished that it gets no mention in this year’s Tax Gap calculations,” notes ContractorCalculator CEO Dave Chaplin. More...
Finance sector drives modest contracting growth
Contractor demand continued its marginal trend of growth throughout September 2015, with the finance sector again revealed to be the driving force. This is according to the latest Professional Recruitment Trends report from the Association of Professional Staffing Companies (APSCo), which shows that contractor demand is up by 1% overall, year-on-year. Meanwhile, opportunities for contractors in the finance sector rose by 21%. “The perpetual war for talent means that contract vacancies are consistently strong, despite an increase in permanent roles,” notes APSCo Chief Executive Ann Swain. More...
Manufacturing contractors could aid sector recovery
Investment in manufacturing contractors could be essential to re-initiating growth in the sector, once conditions have stabilised. The CBI Quarterly Industrial Trends Survey shows industry production to have declined during the three months to October. Despite this, headcounts remain in positive territory at +3%. Conditions are expected to improve over the next quarter, by which time contractors can be key to revitalising the industry, as CBI Director of Economics Rain Newton-Smith explains: “Over the long term, strong investment in innovation and skills is vital to boosting our performance in exports, enhancing our manufacturing growth and improving productivity.” More...
Contractors opt to remain in the EU
The majority of the UK’s contractor workforce want to stay in the European Union (EU). This is according to a survey carried out by the Association of Independent Professionals and the Self Employed (IPSE), which found that 61% of contractors would vote to remain in the EU if a referendum were held tomorrow. Meanwhile, 24% would vote to leave and 14% reported to be undecided. Two in five (41%) contractors claim continued membership would be in their businesses’ best interests, regardless of reforms, whilst 29% believe remaining in the EU would be beneficial if certain reforms are achieved. More...
Contractor trade body launches campaign opposing T&S restrictions
Contractors are being encouraged by trade body PRISM to join Yes2T&S, a campaign opposing proposals to restrict travel and subsistence tax relief for contractors. PRISM warns that contractors have one last chance to overturn the plans which it estimates will reduce contractor take home pay by 20% on average, should they come into effect in April 2016. “Flexible workers travelling to temporary workplaces often over large distances should not be being penalised like this. It is unfair and unworkable,” highlights PRISM CEO Crawford Temple. “I urge George Osborne and his colleagues to think again before the damage to employers and workers is done.” More...
Oil and gas contractors advised over most in-demand candidate roles
Contractors in the oil and gas sector looking for their next contract opportunity can find out what clients are looking for from Rigzone, which has highlighted the industry roles at are currently most in-demand. Rigzone’s 3Q global hiring survey notes that, whilst hiring is currently down, positions in engineering & science, management/support and maintenance & inspection are all readily available for suitable candidates. Companies are in search of candidates with a broad-base of attributes, meaning contractors who have worked hard to upskill may find significant demand for their services. More...
Contractors in Scotland targeted by HMRC to ensure they pay the SRIT
Contractors in Scotland are amongst those deemed to be “high risk cases” whom HMRC believes will attempt to avoid paying the new Scottish rate of income tax (SRIT) by changing the location of their main home to England, reports the Telegraph. HMRC plans to use external data to target contractors and taxpayers with high incomes who it suspects may consider exploiting loopholes in the system. As Eben Wilson, director of Taxpayer Scotland, highlights, HMRC’s methods appear quite aggressive: “We want transparency on what HMRC is doing as the idea that they are trawling for wealthy people to trap them is appalling.” More...
Contracting opportunities in Italy to benefit from Jobs Act in 2016
Contractors exploring opportunities in Italy look set to see increased demand for their services as a result of the country’s Jobs Act, reports Staffing Industry Analysts. This is according to a survey promoted by Gi Group Academy which found that more than 54% of foreign multinational companies, 50% large and 44% medium-sized companies surveyed believe the Jobs Act will benefit the creation of new jobs. This confidence translates into planned hires, with a similar portion of companies planning on increasing headcounts next year. Contractors look to be top of the agenda, with 32.5% of businesses planning on increasing their contingent workforce. More...
CIOT calls for new approach to IR35
HMRC’s attempts to transfer the IR35 compliance obligation to the contractor client will prove ineffective in reducing non-compliance, whilst plans to implement a new ‘supervision, direction or control’ test could catch more genuine contractors. This is according to the Chartered Institute of Taxation (CIOT), who has called for a new approach to IR35 rules. CIOT proposes implementing an annual reporting obligation that would require clients and contractors to engage with each other to determine whether or not IR35 applies. More...
Contractor deadline looms for paper tax returns submittal, accountants warn
Thousands of contractors could face fines of up to £1,600 at the beginning of next month for failing to submit their tax returns on time, accountancy firm Perrys warns. It is estimated that 890,000 contractors and other taxpayers are set to incur fines for missing the 31st October submission deadline, after approximately 700,000 did so last year, City AM reports. Contractors would be dealt an initial £100 penalty, with an automatic fine of £10 a day applied if the tax return remains unfiled after three months. Whilst paper returns are due at the end of this week, the deadline for online submissions is 31st January. More...