Budget 2011: Contractors stuck with a “better administered” IR35
Contractors will remain subject to IR35 for the foreseeable future, until a possible merger of income tax and National Insurance Contributions (NICs) proposed in the 2011 Budget may make it irrelevant. The Chancellor George Osborne opted for the second of the Office of Tax Simplification’s three scenarios for IR35 replacement. Other measures impacting on contractors will be anticipated changes to pension rules and increased NICs. On the positive side, raised NIC thresholds, personal allowances and higher standard mileage rate allowances could improve contractor finances. More…
PCG calls for “the introduction of business tests” to exclude contractors from IR35
In response to Chancellor George Osborne’s decision not to abolish IR35, PCG is calling for the introduction of business tests to exclude genuine contractors from IR35. According to PCG Managing Director John Brazier, the “status quo cannot continue” and he confirms PCG will “play a key part…to ensure HMRC improves its processes of administration.” More…
Oil and gas contractors could be first casualties following Budget tax increases
Contract opportunities for oil and gas contractors could be significantly reduced following the 2011 Budget Announcement and the intention to charge a £2bn windfall tax on North Sea producers. According to industry body Oil & Gas UK, the tax will “shake investor confidence” in the UK’s energy sector, and cause energy firms to reassess ongoing and future investment. Oil & Gas UK chief executive Malcolm Webb says jobs will go as a result: “This change in the tax regime will decrease investment, increase imports and drive UK jobs to other areas of the world.” More…
Contractors closer to receiving BIS advice on Agency Workers Regulations
Contractors concerned that, either as an umbrella company contractor or limited company contractor, they may be affected by the provisions of the Agency Workers Regulations (AWR) are edging closer to receiving final advice from the Department of Business Innovation and Skills (BIS). The Association of Recruitment Consultancies is holding a free public meeting to discuss AWR guidance with BIS representatives at the BIS conference centre in London on 12th April 2011. Contractors and their recruiters are encouraged to attend. More…
“Marked increase” in Scottish IT contractor recruitment
Recruitment of IT and computing contractors experienced a “marked increase” in February, according to the latest Bank of Scotland Report on Jobs. The report, which provides a snapshot of the health of the Scottish labour market from a recruiter’s perspective, also revealed that the engineering and construction sectors posted the “strongest increase in vacancies in three months”. However, the increased demand was matched by an increase in the availability of contractors across all sectors. More…
Contractors set to win new work linked to London 2012 Olympics
Contractors are set to reap their own reward from the London 2012 Olympics, as research from recruiter Recruitment Genius estimates 5,000 new IT and telecoms roles will be created as a result of the event. Assignments will include contractors providing IT, cyber security and communications services during the games, and many of the positions are forecast to become permanent roles. More…
Contractors need ‘hybrid skills’ to make the switch from public to private sectors
Contractors working in the public sector and seeking new private sector assignments will experience difficulty in making the switch unless they have ‘hybrid skills’ according to a new survey by IT recruiter ReThink Recruitment. Its survey results show that 79% of IT directors think that private sector staff “offer better value” than those from the public sector. ReThink Recruitment director Michael Bennett explains that’s because IT directors are looking for the hybrid skills combining a commercial background with technical ability. More…
Contractor business failures predicted to fall by 20% in 2011
Contractor business failures are likely to fall by 20% in 2011 according to forecasts in BDO’s Industry Spring Watch. The accountant and business turnaround specialist warns that there is a likely to be a long ‘tail’ of insolvencies before business failures return to pre-recession levels. Contractors should choose clients that don’t depend on discretionary consumer spending to avoid being left unpaid and in financial difficulty themselves. Rising raw materials prices may result in contractors feeling the squeeze on rates as clients seek to cut costs elsewhere. More…
Contractors using infographic CVs could increase their interview hit-rate
Contractors struggling to secure interviews because their tired and formulaic CV is constantly overlooked by recruiters’ and clients’ initial screening phase might want to consider creating an infographic CV. Designed to visually represent skills, qualifications experience and past assignments as graphic elements of a visual map, rather than as bullet point lists or impenetrable prose, a contractor presenting an infographic CV could tip the balance between securing an interview, or having their CV instantly filed in the bin. More…