Contracting skills shortages worsen, as IT and engineering opportunities grow
One in five contractor clients are predicting that IT, engineering and technical skills shortages will grow during 2015. The Recruitment and Employment Confederation’s (REC) JobsOutlook for December 2014 also highlights that contractor clients are principally using contractors to support their growth plans, as well as a “source of short-term access to key strategic skills”. “Businesses are increasingly thinking about expanding their numbers and many are telling us that they can’t take on more work without more staff,” highlights REC chief executive Kevin Green. “At the same time, the UK is suffering from skills shortages across the economy and it’s getting harder for hirers to attract and retain the talent they need.” More...
Contractors optimistic about 2015 prospects, shows IPSE Freelancer Confidence Index
Contractors are cautiously optimistic about their prospects in 2015, according to the latest Freelancer Confidence Index by the Association of Independent Professionals and the Self-Employed (IPSE). Suneeta Johal, Research Manager at IPSE and co-author of The Freelancer Confidence Index, notes: “The survey shows a strong end to 2014 with freelance businesses performing well. The results suggest the number of contracts will continue to grow and capacity for freelancers will increase as demand for services rises.” More...
Oil and gas contractors should look to the Black Sea and Eastern Med for contracts
Oil and gas contractors unable to find lucrative new contracts in the UK and Norway may find that the Black Sea and Eastern Mediterranean offer an alternative. A report by Rigzone’s on Wood Mackenzie's latest upstream analysis shows that there is still active bidding for exploration licences throughout continental and Mediterranean Europe. Wood Mackenzie told Rigzone that it expects: “A few key regional hotspots to emerge in 2015. This will be as a result of high-impact conventional exploration in the Black Sea and Eastern Mediterranean.” More...
Contractors warned over HMRC’s new penalty regimes, as fines hit five figures
Contractors making even basic mistakes in their tax paperwork could be facing five figure fines by HMRC. Changes to the penalty regime in 2009 have started to filter into the tax tribunal system, and Rebecca Cave writes on AccountingWeb that “the results are quite shocking”. Cave highlights two tribunal cases lost by the taxpayer that resulted in fines of approaching sixty and ninety thousand pounds respectively being upheld. “If you are still blasé about HMRC’s powers to impose penalties, I would recommend you take a few minutes to read these cases,” warns Cave. More...
Contractors with financial and IT skills in high demand by Irish firms
Financial and IT contractors with skills in areas such as data protection, cyber-security, and money-laundering safeguards are in high demand by clients in Ireland, suggesting that the country offer contractors seeking a change of scene from the UK good opportunities. In the Irish Examiner, Morgan McKinley’s Tracy Keevans notes that: “There are already signs of talent shortages in a number of areas. Ireland’s need to continue to invest in, develop, and attract top-class professionals cannot be underestimated.” More...
Contractors could be facing ‘havoc’ from HMRC’s IT systems post 2017
Contractors could be facing an HMRC IT system meltdown that will cause ‘havoc’ as a result of the taxman’s complacency over its IT maintenance contract due for replacement in 2017. The Telegraph’s Christopher Hope writes that the Public Accounts Committee of MPs is less than impressed with HMRC’s “complacency” over the issue, saying the organisation faces an “’enormous challenge’replacing the current Aspire contract for maintaining its hardware and software by 2017”. More...
The UK’s flexible workforce of contractors and freelancers underpins growth, says CBI
The UK’s flexible workforce that includes contractors and freelancers is what underpins economic growth, says Dianne Sharp, Regional Director North East for the Confederation of British Industry (CBI). According to a report by Staffing Industry Analysts (SIA), half of all UK firms are planning to grow their workforce, and “the UK’s flexible labour market has continued to support more people into work”. However, SIA notes that: “Concerns about skills have overtaken employment regulation as the most significant threat to workforce competitiveness and is expected to remain so for the near future.” More...
Swedish Derogation for umbrella contractors challenged by union in EU visit
The Swedish Derogation of the Agency Workers Regulations used by umbrella companies to pay their contractors between assignments and therefore stay outside the scope of AWR has been challenged by the GMB Union. Representatives from the trades union have visited EU officials in an attempt to get the derogation abolished, which could impact negatively on some umbrella company contractors. The union believes that vulnerable workers are being exploited via the derogation, but if successful their actions could impact on highly paid and highly skilled contractors who don’t need or want the protections that AWR provides. More...
‘Moderately successful’ contractors targeted by HMRC
Contractors who are deemed to be ‘moderately’ wealthy have been aggressively targeted by HMRC resulting in a 60% jump in extra tax raised through anti-tax-avoidance activities. According to Out-Law.com, figures obtained by law firm Pinsent Masons “showed that HMRC collected £137.2 million in additional tax as a result of investigations by its 'affluent unit' last year; up from £85.7m in 2012/13”. Pinsent Masons tax expert James Bullock says that HMRC’s activities are “being backed up by new civil powers to pursue unpaid tax and a much more aggressive approach to prosecutions – targeted at professionals and entrepreneurs”. More...
Contractors continue to suffer from HMRC’s poor service standards
Contractors are continuing to suffer from HMRC’s poor service standards, with callers to the taxman’s call centres spending hours in call waiting queues and postal responses to queries taking weeks. Economia reports that contractor accountants using HMRC’s services also complain about HMRC’s “inability to get things right first time”. “HMRC service standards remain disappointing and in some areas appear to have gone backwards,” said Frank Haskew, head of the Institute of Chartered Accountants in England and Wales (ICAEW) tax faculty. More...