Government commits to review and replace IR35
In its Programme for Government published yesterday, the Conservative-Liberal Democrat Coalition Government has committed to review and replace IR35 ‘with simpler measures’, signalling a victory for contractors and PCG’s campaign to abolish the tax legislation. Other key measures for contractor businesses promised by the new government include simpler corporate taxation (see below), increasing small firms’ share of public procurement and further reviews of employment laws. More…
Chancellor promises lower and simpler business taxes
Limited company contractors stand to benefit directly from Chancellor George Osborne’s commitment to lower and simpler corporate tax rates, announced in a speech at the CBI’s annual dinner this week. A range of business measures were announced, including continued lower rates of capital gains tax for entrepreneurial activities and breaks for big firms investing in infrastructure. The latter is a positive sign for engineering contractors after the disappointments of other cancelled infrastructure projects like the new runways at Heathrow and Stansted. More…
Offshore wind and wave energy to create 140,000 jobs
In a report that could transform the fortunes of offshore, oil and gas and energy contractors, the Offshore Valuation Group predicts that wind, tidal and wave energy could replace the current declining oil and gas energy production. This would propel the UK back to being a net energy exporter by 2050 and create 145,000 jobs, many of which would go to contractors, according to the think tank, which represents an informal collaboration of public and private sector organisations. More…
Marketing and PR contractors to receive joint PCG-PRCA support
The Public Relations Consultants Association (PRCA) and PCG (formerly the Professional Contractors Group) have created a strategic partnership to provide support for contractors and freelancers in the marketing and PR sectors. The PR Freelancers Network will offer a range of benefits, including tax advice, helplines, technical guidance, insurances and contract templates. PCG managing director John Brazier says: “With more and more people choosing to work on a freelance or consultancy basis, it makes sense for us to pool our resources to create a network that supports one of the most important industries in the UK.” More…
Surprise dip in Monster Employment Index
The Monster Employment Index fell by 4% in April, although the index is still up 8% year on year. Demand for workers in IT, telecoms, engineering, construction, management, marketing and finance all fell during the month although the good news for contractors is that many of these sectors maintained annual gains. Julian Acquari, managing director of Monster UK and Ireland, warns: “The state of economic recovery in the United Kingdom remains fragile.” More…
London’s financial sector experiences drop in new jobs
City IT contractors may not be out of the woods yet, as the Morgan McKinley London Employment Monitor has reported a 12% drop in the new financial services jobs that keep so many IT contractors in contract. However, compared to a year ago, 100% more jobs were available, suggesting this month’s fall could be a pre-election blip. Morgan McKinley MD Andrew Evans confirms this view: “Underlying recruitment activity continues to be at its strongest since the start of the downturn, although there will always be fluctuations on the road to recovery.” More…
HMRC releases tax tool-kits for contractor agents and advisers
Contractors and their accountants have been given a ‘heads-up’ by HMRC though a series of online ‘tax toolkits’ that identify the most common causes of errors in tax paperwork that attract an inspector’s attention. The first toolkits cover areas directly relevant to contractors, such as expenses, small business tax relief, capital gains and capital allowances. Guidance on more complex topics relevant to accountants and tax advisers, including trusts, has also been released, with more planned. More…