HMRC pursued Primary Path IR35 case despite having little chance of winning
The tax tribunal ruling on the Primary Path IR35 case shows that HMRC had virtually no chance of winning against IT contractor Phil Winfield, who was clearly found to be “an independent and self-employed contractor” by tribunal Judge Edward Sadler. The case also offered important lessons for future IR35 cases, as Judge Sadler suggested that any contract that includes a substitution clause is unlikely to be an employment contract. More…
HMRC admits its targeting of past IR35 cases was poor, but promises improvements
HMRC admitted to the latest IR35 Forum meeting that its targeting of contractors for IR35 investigations “in the early years of IR35” was “less refined”. This confirms contractors’ suspicions about the poor criteria HMRC used to unfairly target many contractors since the IR35 legislation came into force in 2000. HMRC has committed to improve the administration of IR35 through a number of measures, which include an IR35 Helpline, the possible creation of a Business Educational Support Team, an IR35 National Compliance Unit and an IR35 Compliance Team. More…
Contractor recruiters and clients receive AWR guidance from PCG
Contractor recruiters and clients will shortly have access to PCG’s new guide to working with contractors and freelancers. It has been produced in light of concerns inspired by the new Agency Workers Regulations, which come into effect on 1 October 2011. The guide is designed to remove doubt from the minds of existing and potential agencies and end-user clients that hiring contractors will result in additional costs and administration. “The AWR itself is not intended to apply to freelance workers in business on their own account,” explains PCG managing director John Brazier. “This guide is…vital to ensure that those working with freelancers on a day-to-day basis have the confidence to conduct business as usual.” More…
UK flexible labour market is driving employment growth
More workers are choosing contracting and the flexible labour market is driving employment growth. So says Recruitment and Employment Confederation (REC) Chief Executive Kevin Green, commenting on the July REC/KPMG Report on Jobs. Growth in demand for workers is still in positive territory but slowing. Most in demand are IT, engineering and construction workers, who occupy the top slots in the demand tables for both the permanent and temporary/contract sectors. More….
Contractors’ Handbook released as an ebook for Kindle
The definitive guide to contracting in the UK is now available from Amazon.co.uk as an ebook for Kindle. The Contractors’ Handbook ebook features nearly 500 electronic pages packed full of practical and easy to follow advice. “The latest economic surveys all show that more people are choosing contracting than ever before,” says Contractors’ Handbook author and CEO of ContractorCalculator Dave Chaplin. “So it makes perfect sense to make the UK’s expert guide to contracting available in electronic form.” More…
IT contractors may be the solution to HMRC’s customer service failings
IT contractors may offer HMRC a solution to its customer service woes. The UK’s tax gathering organisation was slammed by a Treasury select committee over its “unacceptable” customer service levels. The committee suggested that “enabling IT and process improvements” might help HMRC cope with reduced resources after finding “considerable dissatisfaction among the public and tax professionals with the service provided by [HMRC]”. More…
Contractors in services and construction have cause for cautious optimism
Contractors targeting the services and construction sectors for new contracts have cause for cautious optimism, according to July’s Purchasing Managers’ Indexes (PMIs). Both the Markit/Chartered Institute of Purchasing and Supply UK Services and Construction PMIs were in positive territory. The picture for contractors in the manufacturing sector is less certain, as the Markit/CIPS UK Manufacturing PMI showed the first contraction of activity in two years. More…
IT, telecoms and construction job creation “looks promising for long term growth”
Job creation in the key IT, telecoms and construction sectors “looks promising for long term growth” suggests reed.co.uk Managing Director Martin Warnes in response to July’s Reed Job Index. The overall index is down slightly by 2.4%, which Warnes explains is a result of falling confidence: “There is residual fragility in the economy which has dampened demand.” IT and telecoms worker demand bucked the trend, increasing slightly by 1.3%. More…
Contractors’ views sought by Office of Tax Simplification on small business proposals
Contractors are being asked to comment on the latest set of proposals on small business taxation by the Office of Tax Simplification (OTS). The OTS has published two discussion papers. The first is on simpler taxation of the smallest of businesses, suggesting options such as a ‘business income tax’ that is turnover, not profit, based. The second outlines ways that small businesses can ‘disincorporate’ without suffering tax penalties. Contractors’ views are sought by 7 October 2011. More…
The self-employed enjoy the best work-life balance
The self-employed enjoy the best work-life balance, according to the latest Chartered Institute of Personnel and Development (CIPD) Employee Outlook. Workers in small businesses are reported to have the next best work life balance. The survey reveals that the overall picture of employment in the UK is currently very negative, with pay freezes, a deep mistrust of management, increased bullying, financial hardship and increased stress all affecting employees. Contracting may offer a happier alternative for many employees. More…
Judge’s comments may reduce ‘nuisance’ claims under Agency Workers Regulations
Employment law expert Lord Justice Mummery, previously president of the Employment Appeal Tribunal, has said that “cases of little or no merit…should not be allowed to take up a disproportionate amount of time”. The Association of Recruitment Consultancies (ARC), which is running a campaign to change employment tribunal rules to disallow claims with no real foundation, says Lord Justice Mummery comments are a positive step towards a change in the rules. In particular, they could help eliminate many ‘nuisance’ claims under the new Agency Workers Regulations (AWR). More…