High earners to ‘help’ HMRC reverse income tax decline
Higher earning contractors will be dismayed to learn that their earnings will make up the shortfall in income tax revenues in the coming year. Figures released by HMRC detailing income tax forecasts for 2010-2011 show that an extra £10bn is expected to be raised mainly from taxpayers in the two highest 40% and 50% tax bands. More…
Successful contractors must now file VAT online
More news from HMRC: from 1 April 2010, successful high earning contractors’ limited companies with sales of over £100,000 will have to file VAT returns online and pay VAT dues electronically. HMRC is urging businesses affected to speak to an advisor at one of a series of events being run across the UK to help firms that have not done so already make the switch. More…
Public sector recession hits jobs growth
According to the REC and KPMG Report on Jobs, growth in permanent and temporary positions is slowing due to the public sector ‘recession’. Prospects in the private sector are still increasing and contractors will note that rates are on an upward trend, showing the fastest increase in two years. KPMG‘s Bernard Brown says: “The latest figures show that the UK jobs market is continuing on the road to recovery albeit at a slower pace than the previous month. While the UK's gradual emergence from recession is starting to lead to better job prospects in the private sector, many public sector employers have finally woken up to the scale of the financial challenge that is coming their way.” More…
Agency Workers Regulations to negatively impact on UK offshore sector
Oil, gas and offshore contractors may be the latest in the long line of casualties of the Agency Workers Regulations as oil and gas firms back away from hiring in the UK. Together with high decommissioning costs, the new regulations are seen as a huge barrier to continued growth and investment in the UK’s world-class offshore sector, according to the latest Aberdeen & Grampian Chamber of Commerce Oil and Gas Survey. According to Peter Sharp of report sponsor McGrigors: “The survey shows the marked difference of the impact of a downturn in activity as between permanent and temporary and contract staff. This is in large measure explained by the regulatory protection of permanent employees. The flexibility which currently exists in relation to non permanent staff will be restricted by the Agency Workers Regulations coming into force next year.” More…
Exports hit record peak as manufacturing at highest level since September 1994
Some good news for contractors working in the manufacturing sector from the Markit/CIPS UK Manufacturing Purchasing Managers Index (PMI). The index has increased to 58, up from 57.3 in March, and new exports have reached record levels. Workers are also in increasing demand and, for the first time in the survey’s history, order book backlogs have risen. Some manufacturers are even facing the challenges of matching great demand to limited capacity in order to fulfil orders. More…
Private sector pay thaws
Research published by Incomes Data Services shows that the number of pay freezes in the private sector is falling, whilst the public sector is starting to feel the impact of enforced pay freezes. Rates for contractors have been slowly recovering and the data suggests that workers in manufacturing are receiving higher pay awards than in the service sector. More…