A recent report by accountants KPMG and the Recruitment and Employment Confederation has determined that, despite the recession, there is still a healthy demand for contractors and freelancers. They identified a particularly high requirement for flexible workers in the Engineering Sector which will give increased opportunities for skilled umbrella company contractors who work in this area. The report also demonstrated a high demand for specialist IT contractors and significant opportunities in the accountancy and finance sectors.
ECI have recently published the results of their Growth Survey, which looked into the expansion plans of small and medium sized businesses for the next 12 months, and it revealed that 75% are looking to increase their workforce, with half prediciting profit growth of 16% or more. It is likely that many of these additional staff will be contractors and freelancers because of the flexibility that they offer for growing businesses.
It is believed that the Independent Commission on Banking Report, published by Sir John Vickers, is likely to trigger a rethink amongst the banks on their IT strategies. Major regulatory reform will inevitably lead to big changes within IT systems, which will require additional investment in the skills of top UK IT Contractors.
HM Revenue and Customs have introduced new penalties which will affect Limited Company Contractors who do not file their self-assessment forms on time or are late paying the tax due; the changes come into force for all 2010/2011 returns and all those thereafter.
The new penalties are as follows:
Hewlett Packard's plan to move hundreds of IT jobs to India have been abandoned following pressure from unions.The work involves record maintenance for the Department of Work and Pensions and the proposal was to move jobs from sites in Newcastle, Lytham and Sheffield to Bangalore
The union has said its members have "forced" the government contractor to abandon proposals after they voiced concerns not only about job losses but also data security. The MP Mary Glindon added her backing to the unions saying that offshoring poses a risk to the economic recovery in the UK
HMR&C published ‘Spotlights' on 23rd August 2011 to help identify high risk avoidance schemes.
The publication will help individuals avoid signing up with Umbrella Companies that operate disguised remuneration schemes. More information can be found http://www.contractorumbrella.com/hmrc_aware_new_avoidance_schemes.html
Appeals against the retrospective nature of BN66 have been rejected. For full details visit http://www.contractorumbrella.com/BN66_appeals_rejected.html.
A landmark IR35 case that confirms a contract written to fall outside of IR35, when the working practises puts them inside the scope, isn't worth the paper it's written on.
Our blog has been updated with the full details - http://www.umbrellablog.co.uk/
It is shocking that a large number of contractors have lost thousands of pounds after the demise of offshore umbrella company Tract Management. Those contractors affected are attempting to band together to bring justice against the owners of Tract Management who just seemed to disappear from the company’s offices overnight.