Financial IT contractor recruitment may be hit as ‘City’ jobs plummet
Financial IT contractor recruitment could be hit by the fall in financial sector jobs revealed in July’s Morgan McKinley London Employment Monitor. Vacancies in the financial sector fell by 10% compared to June and are 18% down year-on-year. The uncertainty in the UK’s financial sector and falling headcounts could impact heavily on IT contractor recruitment, as financial services clients are the UK’s largest consumers of IT contractor services. The news from the Office of National Statistics (ONS) about a rise in unemployment comes as a double blow. More…
The UK’s IT workforce of contractors and permies tops 1 million: an all-time high
IT contractor and permanent employee numbers reached 1.093m workers at the end of 2010, an all-time high that representing 4% of the total UK workforce. The latest e-skills Bulletin for the 4th Quarter of 2010 also shows demand for IT workers has risen steadily for six successive quarters. The contract market has been demonstrating ongoing, long-term demand for business analysts, developers and project managers, although e-skills UK says there are no signs of skills shortages, yet. More…
IT contractors experienced a ‘sharp’ increase in demand in Scotland
IT contractors experienced a ‘sharp’ increase in demand for their services during July, according to the latest Bank of Scotland Report on Jobs. July was a good month overall for the Scottish labour market, but IT contracting outpaced all other sectors, as Bank of Scotland Chief Economist Donald Macrae explains: “The number of both long- and short-term job vacancies increased markedly in July, with the rate of vacancy growth rising to a three-month high.” More…
Malaise in manufacturing and services could work to contractors’ strengths
Contractors could actually benefit from the bleak picture of economic malaise painted by the latest BDO Business Trends Indices. Plummeting manufacturing confidence and flat sentiment in the services sector could lead to firms postponing hiring decisions due to the uncertainty and taking on contractors instead. Long term, however, this is not a healthy state of affairs for the economy or contracting. BDO LLP Partner Peter Hemington says that improving the UK’s competitiveness is vital, suggesting that: “This would include simplifying and making the tax system more attractive, continued reform of labour market regulation and looking hard at ways to improve the quality of the UK’s infrastructure.” More…
Contractors should segment prospective clients to win the best contracts
Contractors seeking well paid and interesting assignments may need to segment their target clients by location and sector. This is because client recruitment intentions are becoming increasingly imbalanced towards particular roles, industry sectors and regions of the UK. The Chartered Institute of Personnel and Development (CIPD)/KPMG Labour Market Outlook Summer 2011 forecasts strong job creation in business services and the south, where hirers are 12% more likely to recruit than their northern counterparts. More…
HMRC’s targeted campaigns continue to meet success
HMRC’s targeted tax evasion campaigns are continuing to enjoy success, for the taxman at least, with the arrest of five plumbers suspected of tax evasion. When will it be contracting’s turn? Alongside the five plumbers arrested are a further 600 under civil investigation, although genuine contractors with investigation insurance should have nothing to fear from an HMRC investigation, apart from some downtime and unavoidable stress. For contractors who have been less than honest with their tax affairs, the statement by Mike Wells, Director HMRC Risk & Intelligence Service, should come as a warning: “Some people may have thought we were bluffing when we said we have information that we will use to prosecute tax evasion.” More…
‘Time to Pay’ monitoring to cease, putting businesses at risk
HMRC is halting publication of ‘Time to Pay’ statistics, potentially putting businesses at risk of defaulting on tax liabilities and going out of business. The Business Payment Support Scheme (BPSS) offers cash-strapped businesses, including contractor limited companies, terms under which they can pay tax liabilities over time, rather than being put into liquidation by HMRC. But anecdotal evidence suggests that HMRC is granting far fewer arrangements and refusing dividend-paying small firms outright. HMRC stops publishing its monthly reports, it won’t be possible to monitor HMRC’s administration of the scheme and could put small businesses such as contractor limited companies at risk. More…
Contractors’ views on outsourcing sought by new All Party Group
Contractors are being asked to share their views on outsourcing and shared services by providing evidence to the new All Party Group on Outsourcing and Shared Services at an event in London in late August. The APG wishes to investigate how government can use outsourcing to save money. The event, hosted by KPMG, takes place between 16:00-1900 on Tuesday 23rd August 2011. Contractors wishing to offer evidence should register beforehand. More…
Contractors have a key role to play in the new Enterprise Zones
Contractors have a key role to play as enablers of growth and entrepreneurialism within the new Enterprise Zones launched by the government. The eleven zones are designed to promote growth and create 30,000 new jobs by 2015. The plan is for this to be encouraged through tax breaks, simplified planning rules and super-fast broadband access. Contractors are increasingly becoming acknowledged as playing a vital ‘enabling’ role for growth businesses, by offering their flexibility, knowledge and skills on an ‘as-needed’ basis. More…