Some IR35 Forum progress as HMRC outlines four areas for improvement
Contractors may see some progress from the IR35 Forum, with HMRC promising to introduce a raft of initiatives designed to make improvements to how IR35 is administered. The minutes of the 14 September 2011 Forum meeting show that HMRC has identified four areas that could offer real IR35 process improvements. It will also be creating 12 contractor case studies, based on real examples, on which it plans to consult with Forum members and other stakeholders to help reduce ‘grey areas’ and uncertainty. More…
Demand for engineering and IT contractors continues to buck labour market trends
Contractors in the core contracting disciplines of engineering and IT are enjoying sustained demand growth for their services, well above overall labour market trends. September’s KPMG/Recruitment and Employment Confederation (REC) Report on Jobs paints a gloomy picture of the UK’s labour market, as overall demand for temps and contractors is barely in growth territory. The survey identifies that experienced engineers are in short supply in the automotive, aerospace and oil & gas sectors, and the IT contractors most in demand are developers and business analysts. More…
UK video games sector offers IT contractor opportunities
There is still a healthy and vibrant UK video games sector offering IT contractors opportunities, despite ‘subsidised’ competition from overseas. According to Game Britain 2011, published by the video games industry trade association TIGA, the sector contributes over £1bn each year to the UK economy. However, the report warns that overseas competitors in the USA, Australia, Canada and France receive state subsidies, making it harder for UK companies to compete. More…
Financial IT contractor prospects weaken as UK financial sector activity slows
Financial IT contractors may find their prospects weakened following the disappointing growth figures in the latest Confederation of British Industry (CBI)/PwC Financial Services Survey. Growth slowed in the three months to September, and firms are expecting growth to be slower still in the coming quarter, resulting in headcount reductions. Despite the intention of firms surveyed to maintain IT spend, headcount reductions are likely to be bad news for IT contractors, because the financial sector is one of the largest consumers of IT contractor services. More…
Contractors benefit from positive output in manufacturing, construction and services
Contractors across all sectors should benefit from the upswing in output from all three key sectors of the UK economy. The Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Purchasing Managers’ Index (PMI) for manufacturing, construction and services are all in growth territory, if only by a tiny margin in the case of construction. The reports say that job creation in the sectors is flat or declining, which may work in contractors’ favour as firms hire skilled staff on a contract basis, rather than risk permanent hires in uncertain times. More…
Limited company contractors enjoy one of the lowest tax burdens among the G8 countries
Limited company contractors enjoy one of the lowest corporate tax burdens among the G8 countries, according to research by accountant UHY Hacker Young. Out of 21 countries surveyed, the UK ranks 14th for the tax burden on companies with profits of $100,000 (£65,300). “The perception that the UK is a high tax jurisdiction for business is now something of a myth,” explains UHY Hacker Young Tax Partner Roy Maugham. “There has been a lot of discussion about UK-resident businesses moving overseas – and this has happened – but the reality is that the UK is a considerably more welcoming business environment than most other major economies.” More…
Contractor companies likely to escape business failure
Contractor businesses are less likely to fail than consumer-dependent firms in the retail, wholesale and personal services sectors. The latest Industry Watch published by business advisers and accountants BDO predicts that failures will increase in sectors that depend on consumer spending, whereas manufacturing export-led sectors are likely to recover by 2012. The report forecasts that business failures will fall year-on-year to pre-recession levels by 2015. More…
Contractor ‘enablers’ will benefit from strong performing UK growth businesses
Flexible and highly skilled contractors who act as the ‘enablers’ of the UK’s high-growth entrepreneurial businesses have a target-rich contract environment, says a new report from Deloitte. In its Deloitte Entrepreneurship UK: 2011 Report, the professional services firm identifies that over half of the high-growth firms surveyed forecast double-digit growth over the next 12 months. A third of entrepreneurs surveyed say this will come from organic growth, which means potential contract opportunities as these business up-skill and increase capacity. More…