Inclusion of RTI in IR35 proposals is a ‘nightmare’, expert claims
Contractors and their agents will suffer a major extra admin burden, leading to a public sector nightmare if IR35 reforms involving the reporting of tax via real time information (RTI) go ahead. “Agencies are expected to identify all of the relevant expenses and other deductions. This information won’t be available when making the payment, so the contractor’s tax calculation will be flawed from the very start,” warns Duncan Strike of Intouch accountants.
Strike adds that the complexity of the required calculations means many agencies are likely to deduct contractor tax based on basic information, leaving contractors to reclaim expenses themselves from HMRC at the end of the tax year. More...
New PM Theresa May gives boost to contract sector
Contractors have cause for optimism after Theresa May held a productive roundtable meeting with contracting stakeholders last week. With attendees stressing the need for tax reforms and deregulation, contractors could potentially even look forward to the end of damaging tax legislation and red tape that have troubled the industry over recent years.
“The PM reaffirmed her commitment to making the UK the best ‘environment to do business’ and she’s clearly open to feedback from businesses of all sizes,” says the Association of Independent Professionals and the Self Employed (IPSE) chief executive Chris Bryce, who proposed a six-point post-Brexit plan to Mrs May at the roundtable. More...
Contractors vital to post-Brexit recovery as permanent placements plunge
Permanent placements slumped during July to a level not seen since the 2008/09 recession as clients continued to favour contingent hires. This is according to figures from the first post-Brexit Report on Jobs from the Recruitment and Employment Confederation (REC) which suggest that contractors could again find themselves spearheading the UK’s economic recovery.
Contractor pay rates continued to rise, along with contractor agency billings, with London the only region not to record an increase in contingent placements. With short-term contracts easier to come by in the uncertain economic climate, contractors are encouraged to capitalise and seek out opportunities now. More...
Demand for professionals suffers post-Brexit trauma
Opportunities could arise for contractors in the capital as a result of the post-Brexit fallout. Morgan McKinley’s London Employment Monitor for August 2016 shows that demand for professionals dipped by 12% month-on-month in the first full month since Brexit, and 27% compared with July 2015.
Whilst the slump was expected, there has also been a 14% month-on-month reduction in jobseekers. Contractors are urged to take advantage of the volatile conditions and depleted competition by seeking out temporary opportunities with many firms too uncertain to commit to taking on permanent hires. More...
Good news for contractors with oil and gas industry forum to be fast-tracked
UK oil and gas contractors could see Government action to help rescue the struggling sector sooner than expected thanks to new Secretary of State for Business, Energy and Industrial Strategy Greg Clark.
Mr Clark agreed to bring forward the next meeting of industry group, the MER UK Forum, to discuss the challenges of low investment and activity following a plea from Oil & Gas UK chief executive Deirdre Michie. “He [Clark] reinforced that the UK Government sees the oil and gas sector one which needs to be at the heart of the Government’s new industrial strategy,” comments Michie. More...
HMRC expected to pay more visits to the ECJ in wake of Brexit vote
Contractors could be amongst a surge in claimants filing tax cases against HMRC in front of the European Court of Justice (ECJ) before EU law ceases to apply in the UK. “Claimants might be concerned that the UK Government will attempt without notice to remove the ability to bring a claim based on EU grounds, even where EU law applied at the relevant time,” highlights Andrew Scott, director at law firm Pinsent Masons.
The reach of EU law has widened substantially in recent years, giving taxpayers new grounds for challenging UK tax law, with the ECJ ruling in favour of claimants in a string of recent cases. More...
Half of contractor clients say Brexit won’t impact hiring plans
Confidence amongst contractor clients following the EU referendum doesn’t appear to have been dented as badly as thought, Staffing Industry Analysts reports. New research from Totaljobs has found that 44% of UK businesses claim Brexit won’t have any influence on their hiring intentions.
Whilst candidates expressed concern – 48% are now more worried about finding work – Totaljobs group sales director John Salt says businesses are more optimistic, implying a healthy number of available contract opportunities: “Uncertainty is not matched on the same scale by businesses, who in general remain pretty confident of their ability to attract and retain staff.” More...
SDLT payment window could be cut for contractors entering buy-to-let market
HMRC has launched an eight-week consultation on plans to cut the payment window for stamp duty land tax (SDLT) payments to 14 days after the purchase of a new property, Accountancy Live reports.
The plans are part of a supposedly more streamlined approach from HMRC and will affect contractors purchasing buy-to-let properties, though any change won’t come into force until 1 January 2018. Currently, contractors have to submit an SDLT return to HMRC and pay SDLT due within 30 days of purchasing a property. More...
UK Government has failed North Sea oil and gas contractors
The UK Government has failed North Sea oil and gas contractors by prioritising tax cuts for the sector over securing guarantees over decommissioning work, reports The National.
Speaking after Scottish firms lost out on a decommissioning contract for an offshore plant to a Norwegian firm, Gary Smith, Scottish secretary of the GMB union argued: “What the Government has done is doled out massive tax cuts to the oil and gas sector in the North Sea. They have secured no contracts in terms of decommissioning work.” More...
HMRC boasts high take-up of Personal Tax Account
HMRC claims to be making swift progress with the adoption of its digital tax regime. According to its latest update, contractors are amongst the 3.5m active users of HMRC’s online Personal Tax Account, which is tallying satisfaction scores at around the mid-70s mark.
The Personal Tax Account is the first instalment of the taxman’s much maligned ‘Making Tax Digital’ scheme and is still a work in progress. If you’re currently using the Personal Tax Account, you can look forward to the introduction of an end of year reconciliation and repayment service, as well as an online payment service to speed up payment processes. More...