Just £12.1m tax has been raised by IR35 investigations since 2000, says HMRC
The results of two separate freedom of information requests to HMRC have revealed that between 2000 and 2011 4,208 IR35 investigations generated £12.1m in tax, with the yield per case soaring in the latter half of the decade. ContractorCalculator CEO Dave Chaplin notes that this falls well short of the anticipated £200m a year initially forecast by HMRC, but says: “...this data does not reveal the full extent of the revenue generated by IR35 in addition to that raised as a direct result of investigations.” More…
Contractors continue to benefit from PCG progress securing greater recognition for the contracting sector
Contractors’ and freelancers’ interests are effectively being promoted to the UK’s mainstream political parties and policymakers, both within the UK and at a European level. This is according to PCG’s Martin Brazier in an exclusive interview with ContractorCalculator. He said: “The UK’s contracting and freelancing sector is of national and international importance, and therefore deserving of national and international recognition.” PCG has also commissioned research on the value of the contracting and freelancing sector, which it plans to publish on National Freelancers Day. More…
Conservative MP on PCG’s ‘payroll’ has been active on AWR’s impact on contractors
Contractors are likely to be able to count on the support of at least one politician in the House of Commons. According to the Bureau of Investigative Journalism, Wimbledon MP Stephen Hammond receives £15,000 to £20,000 a year “for acting as parliamentary consultant to [PCG], which lobbies on behalf of freelancers”. The Conservative MP has asked two questions of Business Secretary Vince Cable about the impact of the Agency Workers Regulations (AWR) on contractors. More…
You’re in good company: ContractorCalculator sees 20% rise to 133,141 unique visitors, shows latest ABC audit
ContractorCalculator’s readership has grown by 20% over the last 12 months to reach 133,141 unique visitors, according to its eighth independent ABC audit. ContractorCalculator CEO Dave Chaplin believes the site’s success in retaining and attracting new readers is due to ongoing investment in high-quality content and accurate up-to-date calculators. He says the figures also confirm that ever-more people “are choosing ContractorCalculator as their preferred source of high quality content about contracting in the UK.” More…
IT contractors and interims may face a shock fall in demand as London’s financial sector sheds 27,000 jobs in 2011
Financial IT contractors looking to the City of London’s financial sector for work may face a shock fall in demand as research by thinktank the Centre for Economics and Business Research (CEBR) estimates 27,000 jobs will be lost to the financial sector in 2011. And Reuters’ Anooja Debnath reports that the CEBR is offering little comfort for next year. It predicts there will be no growth in 2012, which may further dampen demand for IT contractors and interims. More…
London’s ‘Silicon Roundabout’ offers a growing market for technology contractors
Not far from the City of London is Tech City, which may offer contractors some better news. Better known as ‘Silicon Roundabout’, it has attracted a number of high-profile developers and entrepreneurs from the US’s Silicon Valley and is becoming a growing market for technology contractors. According to Olivia Solon, writing for Wired.co.uk, Tech City will be recruiting for up to 500 new roles this month, and has produced around 500 startups over the last five years. Tech City Investment Organisation chief executive Eric Van Der Kleij told Wired.co.uk: “The technology industry is flourishing in the UK, and digital and tech companies are providing increasing opportunities for employment, with the sector contributing £66.4 billion annually to the economy.” More…
Contractors in the manufacturing sector may suffer from “significant” falls in activity
Contractors with clients in the manufacturing sector may be sharing the woes of City IT contractors and interims over the next quarter as the UK’s manufacturing output is forecast to fall. The Confederation of British Industry’s (CBI) Industrial Trends Survey predicts “significant” falls in both domestic and export orders, which may well result in falling demand for contractor services. The CBI’s Chief Economic Adviser Ian McCafferty blames poor access to trade finance and Eurozone uncertainty for the weak performance. More…
82% of contractor clients plan to maintain or increase their use of temporary and contract workers
Despite the gloom afflicting the financial and manufacturing sectors, contractors are still in demand from other areas of the UK economy, as this month’s Recruitment and Employment Confederation’s (REC) JobsOutlook shows contractor and temp demand sustained. Some clients are clearly positive about future prospects, as REC Director of Research Roger Tweedy explains: The underlying trend this month is one of improvement in employers’ optimism about their future hiring intentions. Ongoing feedback from recruitment professionals confirms that businesses in many sectors are still looking to attract workers with the right talent despite the difficult economic climate.” More…
Mid-sized firms: an under-exploited contract market?
Contractors seeking alternative sources of contracts may find the UK’s mid-sized firms a potentially under-exploited contract market. The Confederation of British Industry (CBI) has conducted research with McKinsey that shows businesses with a turnover of between £10m and £100m could inject up to £50bn into the UK economy by 2020, creating singificant new contract potential for contractors. “I want the UK to have its own version of the German ‘Mittelstand’ – a backbone of medium-sized firms which export, innovate and generate growth,” explains CBI Director General John Cridland. “These future champions would help the UK weather unexpected economic shocks, and act as a new engine for growth.” More…
Online accountancy services in demand by contractor limited companies
The majority of small UK firms, including limited company contractors, want their accountant to process all their documents online within the next two years, according to a new survey. The demand for online accountancy services, highlighted by the survey by accountancy software provider CCH, is gradually being met, as 44% of those surveyed receive at least one online service from their accountant. Almost a third of small businesses want closer integration with their accountant’s system. More…