MPs vow to fight contractors’ cause in Parliament and across government
MPs who sit on the All Party Parliamentary Group (APPG) for the Freelance Sector are planning a campaign to educate fellow MPs, government departments and the civil service about the critical importance of contracting to the UK economy. “Freelancing is the very foundation of the British wealth-creating sector,” says Brian Binley MP, chairman of the APPG. According to John Brazier of PCG, which recently brought together the parliamentarians with industry experts, the first stage of the education process will be an Autumn 2011 report to MPs. More…
Contractor Gary Hughes and his limited company Marlen defeat HMRC in IR35 case
Contractor Gary Hughes has been found to be outside IR35 by a Birmingham tax tribunal. HMRC had argued that a mutuality of obligation existed between engineering contractor Hughes and his client JCB. The defence by Nicola Smith of Accountax was so compelling that the judge, Lady Mitting, called a halt half-way through to say: “We have considered two factors – mutuality of obligation and control. These are the two factors which make up the irreducible minimum required to demonstrate a contract of employment.” With no mutuality and insufficient control, the judge found that Hughes’ circumstances failed to meet the minimum requirements to demonstrate employment. More…
Financial IT contractor vacancies increase by 60% says Powerchex
Financial IT contractor vacancies have increased by 60% in the second quarter of 2011 compared to the first, according to Powerchex. The pre-employment screening firm says that demand for City workers overall increased in June. “With overall staff costs rising, the ability to use contractors for support services like IT makes clear business sense,” says Alexandra Kelly, MD of Powerchex’s owner HireRight, about the quarterly increases. More…
Financial IT contractors will benefit from increased hiring in the financial sector
Financial IT contractors stand to benefit from unexpectedly high recruitment in the UK’s financial sector, which is one of the largest consumers of IT contractors. According to the latest CBI/PwC Financial Services Survey, in the three months to June recruitment has risen at its fastest rate since the financial crisis started in September 2007. CBI Chief Economic Adviser Ian McCafferty says he is heartened at “the unexpected, strong rise in numbers employed in the sector”. More…
IT and engineering contractors register year-on-year increases in demand growth
Engineering contractors top the temporary/contract staff demand growth league in June’s Recruitment and Employment Confederation (REC)/KPMG Report on Jobs, closely followed by IT contractors. Both disciplines have exhibited sustained year-on-year growth as the rest of the labour market slows. “Although there has been a deceleration in the rate of growth, the UK jobs market is resilient and we are not expecting a double dip in employment,” says REC Chief Executive Kevin Green. More…
Contractors see jobs growth slow ‘sharply’ in manufacturing and construction
Contractors seeking new contracts in the manufacturing and construction sectors may struggle as jobs growth slows ‘sharply’. The Markit/Chartered Institute of Purchasing and Supply (CIPS) Manufacturing and Construction Purchasing Managers’ Indexes (PMIs) for June both show the economic recovery slowing, although both sectors are still in positive territory. Similarly, although exhibiting stronger growth, the Services PMI shows that private sector services firms are not recruiting either. More…
Treasury move offers hope for oil and gas contractors
The decision by the Treasury to offer tax breaks to oil and gas firms new to the North Sea could lead to new projects and contracts for oil and gas contractors. However, these are unlikely to replace the contacts lost as a result of the ‘windfall tax’ introduced in the 2011 Budget, which is estimated to have cost UK oil and gas firms billions of pounds as a result of cancelled projects. Oil & Gas UK’s Economics Director Mike Tholen says: “Whilst the change to the allowance will not redress the damage caused by the recent tax increase, it will help new investors to the UKCS [UK Continental Shelf] who are otherwise disadvantaged compared to more established players.” More…
HMRC publishes latest FAQs on disguised remuneration rules to catch contractors using offshore solutions
HMRC has published an updated set of frequently asked questions (FAQs) about the disguised remuneration legislation announced on 9 December 2010, and which effectively ended overnight many contractor offshore solutions. The disguised remuneration rules have been criticised by tax experts as being complex to the point of being unworkable, but in this new guidance HMRC says that complex rules are required to tackle complex financial and offshore solutions. More…