Brookson News Feed - Contractor Umbrella Company

Research shows drop in recruitment firms entering administration

Mon, 05 Jul 2010 09:50:49 GMT

Posted by James Curtis

Umbrella contractors operating in the UK could be among those to benefit from an improvement in the performance of the country's recruitment agencies.

According to recently-published research from industry publication Recruiter, just 15 recruitment businesses entered administration during the second quarter of 2010.

The news provider said this represented a "dramatic" drop on the 22 firms that were placed into administrator's hands in the first three moths of the year.

Recruiter said the number was also significantly down on the 23 firms that filed for administration in the fourth quarter of 2008, just before the UK officially entered recession.

However, the research also revealed that the number of recruitment organisations with a multi-million turnover in the UK has reduced.

While their were six companies with such large turnovers in the first quarter of 2010, just one managed to sustain that operating level into the second three-month period of the year.

REC calls for reduction in red tape

Fri, 18 Jun 2010 05:01:19 GMT

Posted by Alex Turner

Umbrella contractors working in the UK could benefit from a reduction in recruitment regulation after the country's leading industry body confirmed its stance on extending the Gangmasters Licensing regulations.

The Recruitment and Employment Confederation (REC) has said that its "clear and unequivocal" position is that extending the regulations into other sectors of the industry is not the most effective way to raise standards.

In a letter to business secretary Vince Cable, Kevin Green, the organisation's chief executive, said: "Extending licensing would create substantial costs for recruitment businesses.

"In addition, it simply would not work on the ground. The end result would be already-compliant agencies having to fund an unwieldy and bureaucratic machine whilst rogue providers continue to operate under the radar."

The expert added that while the REC feels that additional licensing is "not the way forward", the organisation is determined to enhance industry standards by working with the new government.

Contractors could benefit from new AWR Toolkit

Thu, 17 Jun 2010 04:26:40 GMT

Posted by Alex Turner

Umbrella contractors working in a wide range of UK industries could be among those to benefit from a new guide being issued to recruiters with regard to the Agency Workers Regulations (AWR).

The AWR are set to come into force in 16 months' time and in order to prepare its members for the changes, the Recruitment and Employment Confederation (REC) has issued an AWR Toolkit.

According to the organisation, the toolkit will help recruitment firms prepare for the practical, technological and legal "challenges" the introduction of the AWR will present.

Tom Hadley, the REC's director of external relations, commented: "This is a significant milestone - the latest stage in a ten-year campaign to ensure that the EU regulations are workable in the UK.

"The AWR are amongst the most significant to ever hit the industry. At the same time, there will be real opportunities for recruiters to demonstrate expertise, leadership and added value in their discussion with clients."

Contractors could benefit from recruitment freeze

Fri, 11 Jun 2010 03:36:04 GMT

Continuing recruitment freezes could be beneficial for contractors as firms shy away from making permanent appointments.

This could lead to more businesses seeking people on a temporary basis in order to continue operations.

Andrew Hawes, director and co-founder of engineering consultancy Newton, said that hiring levels are still down even though companies have seen improvements.

"We are not seeing people going out and putting a big focus on recruitment. It is much more about getting themselves in a really lean, good position, and I think inevitably that will feed into more recruitment," he said.

"I think a lot of these businesses are going to get themselves into a shape where they can start recruiting, but it is not yet at a point where that has become the focus. It is much more focussed on the operations."

The comments come in response to a new report from recruitment firm Manpower, which revealed that almost nine in ten employers do not expect to change their hiring levels in the third quarter.

Government has 'no intention' of scrapping NHS IT programme

Tue, 08 Dec 2009 01:11:08 GMT

Posted by James Curtis

IT contractors working in the healthcare sector will still have opportunities as part of the NHS IT programme despite plans to cancel elements of the scheme.

Chancellor Alistair Darling told BBC1's Andrew Marr show that the system "isn't essential to the frontline" and that his pre-Budget report, due to be published tomorrow (December 9th), will confirm cut-backs.

Despite this, the government has said that only part of the IT programme would be shelved, which is good news for IT contractors.

It is believed that cuts are necessary to after the National Programme for IT budget increased to more than £12 billion, a sum that has been widely criticised by opposition parties.

The BBC reported yesterday that health secretary Andy Burnham told the House of Commons that the NHS IT system is a "key part of delivering modern, safe, joined-up health care.

"We have no intention whatsoever of cancelling the programme overall, not least because it is already making the NHS safer, more efficient and more convenient for patients."

The Times reported in October that problems caused by NHS computing systems were resulting in six month patient waits for hospital treatment.

'Holistic' tax systems need to be considered, expert suggests

Fri, 27 Nov 2009 10:07:09 GMT

Posted by Alex Turner

Umbrella companies may be interested in the latest tax recommendation, which involves policymakers considering systems more "holistically".

This is the opinion of Chris Sanger, head of tax policy at Ernst & Young, who wrote in the Times that the UK will have the joint seventh highest marginal income tax rate of the Organisation for Economic Co-operation and Development nations once the 50 per cent income tax rate takes effect.

Ahead of the pre-Budget report, Mr Sanger argued that chancellor Alistair Darling needs consider how the tax system is able to support the UK's business environment.

"Helping businesses in this way need not be costly but should provide a framework to give certainty and clarity both in the short term and beyond," he commented in the newspaper.

Mr Sanger went on to say that British companies are "well placed to prosper" once the global economic recovery materialises, but that a regime is needed that allows them the "flexibility to take commercial decisions" without being negatively affected by a complex tax system.

The tax expert wrote in the Daily Telegraph in April that the new high income tax rate "will come as a surprise to many".

Contractors retain choice to opt out of conduct regulations

Tue, 17 Nov 2009 10:20:19 GMT

Posted by James Curtis

Contractors will retain the choice to opt out of the Conduct of Employment Agencies Regulations, following a successful campaign by the Association of Professional Staffing Companies (APSCo).

The campaign was launched after the Department of Business, Innovation and Skills (BIS) announced proposals to broaden the Conduct Regulations.

One suggestion was to take away the option of limited or umbrella company contractors to opt out of the regulations.

APSCo said that under the proposals, agencies are prevented from recouping placement costs when workers are offered permanent posts by an organisation.

The association also said agencies were more susceptible to fraud by being forced to pay contractors even in the absence of valid timesheets.

Agencies also face heavier scrutiny and increased obligations to ensure detailed information on workers and positions is obtained, before staff are supplied.

Ann Swain, chief executive of APSCo, said: "This is an important victory for the recruitment industry. If the opt-out had been withdrawn, the red tape burden on recruiters and contractors of automatically having to comply with the Conduct Regulations would have imposed significant additional costs.

"The government has acknowledged that there is insufficient evidence of the opt-out being used to exploit vulnerable workers. It should concentrate on finalising the Agency Workers Directive regulations and getting the employment market back on track before it returns to this issue again."

'Fewer new to contracting' in IT in October

Tue, 10 Nov 2009 10:08:18 GMT

Posted by Alex Turner

The IT sector saw fewer entrants who were new to contracting in October, according to Contractor UK.

Reporting the latest industry snapshot from market analyst Markit, the online news provider explained that the number of temporary workers available in October across five sectors - including IT - stood at the lowest in 15 months.

However, for those who are not new to contracting, demand is currently at its highest for 18 months.

Contractor UK claimed that April 2008 was the last time that IT contractors witnessed the same level of demand as they do at present.

With a score of 50 indicating no positive or negative change on the previous month's conditions, demand for IT contractors was placed at 53.8 in the report.

This puts it 2.3 points higher than the demand for permanent IT staff when assessed against the same criteria.

Markit's research assesses "the pulse" of agencies that belong to the Recruitment and Employment Confederation (REC), the news provider asserted.

Last week, the REC's own figures showed rising numbers of appointments during October across both temporary and permanent placements.

Belfast's aerospace industry receives a boost

Tue, 03 Nov 2009 01:08:54 GMT

Posted by Alex Turner

Umbrella companies involved in Northern Ireland's aerospace industry could secure more work in the future thanks to a Belfast company's expansion.

Nacelle Systems Consultancy (NSC) is implementing an £870,000 expansion programme, the province's enterprise minister Arlene Foster has confirmed.

The firm specialises in the design, development and integration of high-tech electrical, hydraulic and control equipment to connect aircraft engines to wings.

"Thanks to a combination of high calibre skills and a shrewd knowledge of the market, NSC is securing premium, specialised work contracts that are not only lucrative but which are also helping the company build a significant international reputation," Ms Foster said as she opened the company's new site in east Belfast.

Invest Northern Ireland in contributing towards the expansion by providing £115,000 of funding, while money was also secured through the European Regional Development Fund.

Elsewhere, Ms Foster recently launched Invest Northern Ireland's £2.7 million innovation vouchers programme, which will allow smaller companies to use innovation in order to grow and succeed.

Bright prospects for oil and gas and pharmaceutical industries

Mon, 02 Nov 2009 04:41:11 GMT

Posted by Jim Ottewill

Umbrella companies in the oil and gas and pharmaceutical industries have received good news after the sectors were found to be doing well by The Share Centre.

The organisation's investment adviser Nick Raynor said that the recent discoveries of oil at depths "previously unimaginable" have helped to increase BP's share price, with oil prices recently increasing to $80 (£48) per barrel.

This could have improved further had it not been for the dollar weakening in value against the pound in recent weeks.

Mr Raynor went on to say that deep water discoveries off the Brazilian coast, which will go some way to increasing oil reserves, have also boosted prospects for the oil and gas industry.

Things are also looking up for the pharmaceutical industry, with GlaxoSmithKline (GSK) doing particularly well.

This is because the US Food and Drug Administration has approved a number of treatments recently, while H1N1 vaccines are being stockpiled by governments around the world.

GSK announced last week that it expected further growth during the fourth quarter of this year thanks to sales on influenza products.

Retirement income could be boosted by taxation reforms

Mon, 02 Nov 2009 12:18:45 GMT

Posted by Alex Turner

A number of taxation reforms should be implemented so that people can manage their retirement income more effectively.

This is according to the Investment Management Association (IMA), which made its recommendations in its pre-Budget submission to chancellor Alistair Darling.

Likely to be of interest to umbrella companies, the IMA wants to increase confidence in long-term savings and allow people to manage their retirement income more carefully.

"We are calling for the government to help savers and pensioners by increasing the ISA limit annually at least in line with inflation and to abolish the requirement for people to turn their pension savings into an annuity by the age of 75," explained Richard Saunders, the IMA's chief executive.

Mr Saunders went on to say that the IMA wants to see the implementation of other reforms, including those which will aid the competitiveness of the UK fund management industry.

The IMA announced last week that 2009 will break the record for investment fund sales, with the £18.7 billion mark being reached in September.

Smaller technology companies 'form foundation' for IT sector

Mon, 02 Nov 2009 12:15:08 GMT

Posted by Jim Ottewill

Umbrella companies in the IT sector are playing an important role in the direction of the industry as a whole.

This is the suggestion of Carrie Hartnell, head of industry strategy at the UK IT industry association, who also said that smaller technology companies rely on investment from larger IT businesses.

"The smaller companies basically form a foundation for the technology industry in the UK," she explained.

"Obviously they can't do without larger companies' investment but if you look at the IT software and services market there are a large number of small companies and...a relatively good number of very large companies."

Ms Hartnell went on to say that the "whole network" needs to be supported to ensure that smaller companies can develop, grow and remain sustainable, rather than selling to larger companies or stagnating.

According to a recent analysis by Booz & Company, research and development spending in the computing and electronics industry has increased by more than four per cent in the past 12 months.

Oil and gas contractors 'should get tax breaks'

Fri, 02 Oct 2009 03:32:10 GMT

Written by Alex Turner

Limited companies and contractors operating in the UK oil and gas sector could soon be benefiting from new tax courts as industry leaders take their campaign to the very top of the British government.

Oil and Gas UK is keen to see the introduction of tax breaks for the planned boosting of infrastructure in the North Sea, with experts claiming that the sector and those contractors working within in it now need "nurturing" rather than hindered by taxation.

Speaking at a special Aberdeen event on the issue of tax and the oil and gas industry, the head of North Sea exploration at Shell, John Gallagher, expressed concerns that energy companies could be "squeezed" for tax revenues in a bid to reduce the national debt and obtain money to help the financial services sector.

"There's an under-recognition of the maturity of the North Sea. We need to foster these assets into the middle age, perhaps more holistically than we are doing at the moment," he told delegates, according to the Herald, which organised the conference.

"There are lots of brown field operations getting taxed as if we are in the first 10 years of basin life," he added.

Meanwhile, Total has predicted that gas flow from the UK's last untapped field, just to the west of the Shetland Islands, could begin in 2014, with a number of new contractor opportunities likely to be created as a result.

Government 'should help aerospace go green'

Fri, 11 Sep 2009 11:18:06 GMT

By Alex Turner

The government should provide greater support for those working within the aerospace sector in order to help it reduce carbon emissions, it has been claimed.

According to the Air Transport Action Group, the industry can be further streamlined to make it more energy-efficient and the onus is on the government to make this happen.

Paul Steele, executive director at the group, commented: "The government needs to make the investments necessary to upgrade air traffic management systems so that modern aircraft are equipped with state of the art technology and can fly in the most efficient and optimum way."

He went on to say that a lack of investment in infrastructure is causing delays that leave aircraft in the air for longer than necessary - increasing carbon emissions.

Last week, the Committee on Climate Change recommended that global aviation emissions should be capped as part of a worldwide agreement to tackle environmental issues.

NHS 'has great start to the year'

Fri, 11 Sep 2009 10:50:20 GMT

Written by Alex Turner

The NHS has started 2009-10 positively by delivering on a number of key priorities, according to figures released by the Department of Health (DoH).

In its report for the first quarter of this year, the department showed the health service was able to decrease waiting times and healthcare-associated infections (HCAIs), improve access to primary care and maintain good financial health during the period.

HCAIs fell by 39.3 per cent compared to the same period last year, while the NHS maintained the operational standard to treat all patients within 18 weeks from referral which came into force in January 2009.

David Flory, DoH director general of NHS finance, performance and operations, commented: "The quarter one report shows that the NHS has made an excellent start to the year by meeting key priorities over the last quarter during a period when they were dealing with the added pressures of swine flu."

Earlier this week, shadow health secretary Andrew Lansley told NHS managers that spending on the organisation would be limited under the Conservatives.

High alcohol prices hitting small pub owners

Wed, 02 Sep 2009 09:17:37 GMT

Written by Jim Ottewill

The Federation of Small Businesses (FSB) is calling for a reduction in beer charges, which the organisation claims is hitting small public houses hard.

Research by the trade association, which represents the interests of small firms and start-ups in the UK, found that one in eight pubs is "struggling" to cope with rates imposed upon them by the Pub Company (Pubco).

According to the FSB, these small pubs are forking out up to 50 per cent more than pub owners who buy their products in the open market.

Clive Davenport, trade and industry chairman at the organisation, said that the high charges are not only affecting pub owners and landlords, but are also making things difficult for contractors and sole traders employed in these public houses.

"The dramatic number of pub closures is not only affecting the tenants and their families, but the wider community - 24,000 people lost their jobs over the past year," he revealed.

Small oil companies 'to boost activity'

Tue, 01 Sep 2009 10:56:43 GMT

Written by Alex Turner

Small oil companies within the UK have signalled that they are likely to boost their levels of offshore activity on the back of a number of recent government incentives, spelling good news for contractors working within the energy sector.

Prior to the start of summer, ministers moved to reduce the rate of tax being levied on smaller oil fields from 50 per cent to 30 per cent in a bid to boost exploration efforts.

Combined with falling costs, most notably of those related to lifting and extraction, this move means that businesses within the sector are now starting to step up their levels of activity, with an estimated 400 million barrels of North Sea oil set to be tapped over the next few years.

Explaining the upturn in the industry, Alessandro Pozzi, an oil analyst with Edison Investment Research, told Reuters: "It's a viable business because of the low lifting costs and the low capital expenditure.

"If they manage to maintain this 30 per cent tax rate on onshore fields as well, that will be a good thing. You will see probably even more companies doing exploration," he added.

This follows on from the recent publication of the latest Oil and Gas Eye Index from Ernst and Young, which concluded that the outlook for UK energy companies, and therefore for contractors within this field, is becoming "more positive".

HMRC to investigate umbrella companies

Mon, 17 Aug 2009 05:06:16 GMT

Story written by Alex Turner

HM Revenue & Customs (HMRC) is to investigate a number of concerns surrounding umbrella companies.

The tax organisation published a brief detailing potential issues, including invalid dispensations, ineffective overarching employment contracts, potentially illegal deductions and unlawful management processes.

Other problems include non compliance with dispensations, tax-free expense payments and national minimum wage breaches.

Bob Jones, an ex-revenue inspector, told Shout 99: "There are some umbrella companies without robust overarching contracts, without adequate checks that expenses have been incurred, without adequate audit trails where expenses have been incurred and using salary sacrifice to pay below the minimum wage.

"Those responsible umbrellas who comply with all their legal obligations simply cannot compete with those who do not. Compliant umbrellas will welcome this approach by HMRC."

HMRC recently issued a warning to all small-to-medium enterprises including sole traders and limited companies to beware of scam emails offering a tax refund.

The number of online phishing attacks also peaked during July, the research showed.

Limited company contractors to be excluded from AWD

Fri, 17 Jul 2009 10:30:45 GMT

Story written by Alex Turner

Limited company contractors may be left out of the Agency Workers Directive (AWD) while umbrella company contractors will be covered by the policy, one contractor expert has suggested.

Dave Chaplin, ContractorCalculator chief executive, made the comments on his organisation's website after attending a consultation meeting at the Department for Business, Innovation and Skills.

The meeting debated the AWD, which is a piece of legislation aimed at providing contractors with the same rights as permanent employees after working an organisation for 12 weeks.

Mr Chaplin said: "Whilst it is essential that these vulnerable workers are protected, contractors, who have not asked for these rights, are far from vulnerable and may frequently be remunerated higher than their permanent peers.

"So it is wrong for them to be 'protected' by legislation aimed at vulnerable workers."

However, the definition of a 'worker' is "someone who works under a contract of employment", which could technically apply to a contractor working through an umbrella company, he concluded.

The Association of Recruitment Consultancies has previously appealed to the government to ensure high-earning contractors are left out of the legislation.

Contractors 'need more than technical skill'

Mon, 20 Apr 2009 08:55:45 GMT

Successful contractors need more than technical ability if they are to remain in business during the economic downturn, one business expert has advised.

Dave Chaplin, ContractorCalculator chief executive officer, made the comments in the run up to an event he is speaking at on April 30th, which focuses on how to win work during the economic downturn.

He said that it is not necessarily the best contractors who win work but those who are best at bidding.

Mr Chaplin told ContractorCalculator: "To ensure success, contractors need to understand the sales cycle, know when to time their contract moves and where to find the plum contracts.

"Once they've found a suitable contract opportunity, it's up to the contractors to convert this into a paid contract by having a killer CV, winning interview skills and faultless negotiation."

The talk is to take place in Liverpool Street, London and should provide contractors with advice and networking opportunities.

New benchmark scale rates introduced

Thu, 09 Apr 2009 03:39:47 GMT

HM Revenue & Customs (HMRC) has announced details of a new scale of benchmark rates for contractors.

According to the body, the rates are aimed at those contractors who incur costs when they are travelling away from their normal place of work.

Contractor Calculator stated that the changes are most likely to affect umbrella company contractors, as they are more used to claiming expenses for meals.

Dave Chaplin, chief executive of Contractor Calculator, said that the changes could be both good and bad as new umbrella companies can implement these rates without requiring dispensation.

"However, the downside is that senior executives from several umbrella companies have told me that they are expecting HMRC to come knocking on their doors asking to review their existing dispensations before they expire," he added

HMRC stated that the new benchmark scale should mean that employers no longer need to conduct a sampling exercise to identify a rate, something which has proved "expensive and burdensome" in the past.

The new system of rates was introduced on April 6th.

Lloyds brings in electronic ISA process

Wed, 01 Apr 2009 05:52:55 GMT

The Lloyds Banking Group has announced that it will take part in the Bacs electronic transfer system for ISAs.

According to the firm - created following the takeover of HBOS by Lloyds TSB - the new system should remove delays which have been caused by customers needing to send cheques via the post.

"The industry wide delays experienced by customers last year were largely due to the outdated cheque and postal system on which the ISA transfer market was dependent," said Colin Walsh, managing director of savings and investments at Lloyds.

He added: "The move to electronic transfers is an important step forward but it is essential we continue to work together as an industry to improve the process."

Customers at all of the group's brands - including Lloyds TSB, Halifax and Cheltenham and Gloucester - will be able to use the system.

According to an estimate from the British Bankers' Association, up to 1,000 ISA transfers a day during the peak ISA season could be made more efficient by using electronic transfers.

Chancellor limits business rate rises

Wed, 01 Apr 2009 12:25:32 GMT

The chancellor Alistair Darling has cut the proposed five per cent rise in business rates allowing sole traders and self employed contractors to spread payments over three years.

According to the Department of Communities and Local Government, the rate rise is to be reduced to two per cent with businesses able to spread payment of the remaining three per cent increase between 2010 and 2012.

Under the new proposals ratepayers in the UK will be able to defer payment of an estimated £600 million, which should boost their cash flow for the current year.

Mr Darling said: "The government recognises that businesses need help now to ease their cash flow at a time when money is very tight.

"This measure will help businesses to smooth their rates payments over the next few years to deal with the effects of the recent spike in inflation."

A survey from the Times found that more than half of councils in the UK said businesses in their area are struggling to pay their tax rates.

Feedback from IT contractors wanted

Tue, 31 Mar 2009 12:39:51 GMT

The Central Office of Information (CIO) is appealing for feedback from IT contractors on the efficiency of its websites.

According to the CIO, it is looking for feedback as part of a strategy to enhance the cost effectiveness and performance of its websites and particularly wants to hear from those contractors working on the government's online presence.

Contractor UK reports that the feedback will be used to create public service portals, as part of a plan to save money for the government and the taxpayer while improving user experience.

Consultants, bloggers, and web analysts are among those who need to submit their feedback before April 7th.

Previous research from IT consultancy company Morse revealed that many businesses feel they are paying too much for the services of their IT contractors.

Findings from the study showed that many businesses use contractors when they have a skills shortage as the impact of the downturn has prevented them from hiring permanent staff.

Government introduces simplified business support structure

Tue, 31 Mar 2009 09:50:28 GMT

The government has completed the design and rollout of its Solutions for Business support structure.

According to the Department for Business, Enterprise and Regulatory Reform (BERR), sole traders and businesses new to contracting will be able to access guides to contracting from Business Link.

The schemes will provide firms with guidance on accessing products which can help with issues such as starting up, growing, export, finance and innovation.

Train to Gain and Business Link brokers are expected to work together under the Business Link brand to provide sole traders and contractors advice on contractor tax and IR35 compliance.

Ian Pearson, minister for business, said: "To succeed in a competitive global environment UK businesses need ongoing access to help and support.

"The streamlined Solutions for Business portfolio makes it simpler for businesses to access the help they need, providing long-term, sustainable support to business."

Meanwhile, the BERR is to provide businesses in the UK with additional support to cope with new measures which will allow an extra 4.5 million people to work flexibly from April 6th.

Rights law 'must exclude highly-skilled workers'

Tue, 24 Mar 2009 03:25:33 GMT

A proposed new law which will provide agency employees with equal rights to permanent staff must take into account the differences between highly-skilled contractors and low-skilled workers, according to agency association APSCo.

The organisation has written to business secretary Lord Mandelson urging him to exclude contractors and freelancers from the EU's Temporary Agency Workers Directive (AWD).

AWD will be adopted by the UK government and APSCo has urged Lord Mandelson to ensure that it is done so correctly.

According to the letter, there "is a clear need to differentiate between highly-skilled, highly-paid professional contractors and freelancers and low-paid, low-skilled agency workers, for whose protection the directive was originally designed".

Brookson managing director Martin Hesketh backed the stance from APSCo, commenting: "We fully support the lobbying work that APSCo is doing to highlight that the needs of highly-skilled, highly-paid professional contractors and freelancers are different to those of agency workers."

Tax appeals 'need professional accountancy services'

Mon, 23 Mar 2009 03:22:20 GMT

Taxpayers should seek professional accountancy services for assistance with an appeal against an HMRC decision, the president of the Chartered Institute of Taxation has advised.

A new settlement system comes into place on April 1st, so even people who have already begun an appeals process should still seek advice to make sure they understand the changes, Nick Goulding said.

The main changes include an optional review process and a strike-out in VAT cases.

Mr Goulding said: "The Chartered Institute of Taxation always advises taxpayers to get qualified professional advice."

The new financial year will also see HMRC receive a range of new powers to investigate tax compliance.

HMRC officials will be able to ask both taxpayers and third parties for documents relating to businesses.

However, using a specialist accountant such as Brookson ensures that all these issues are handled by professionals with a range of experience of dealing with HMRC and changes to taxation.

Tories deny tax rift

Mon, 23 Mar 2009 03:04:11 GMT

The Conservative party has denied that there is disagreement among its ranks over inheritance tax.

Shadow business secretary Kenneth Clarke - who rejoined the Tory frontbench this year after a long period in the backbenches - told the BBC's Politics Show on Sunday that a rise in the threshold of inheritance tax was an "aspiration".

The rise had been promised by shadow chancellor George Osborne at the party's 2007 conference.

Mr Clarke's claim was jumped on by Labour as a sign of a rift within the Conservatives.

"The thing about Ken is that he just cannot help but say what he thinks," said Lord Mandelson, Mr Clarke's opposite number in Labour.

"On economic and taxation policy, as on so many issues, his views are nearer to the government's than to the Cameron-Osborne Tory party."

However, senior Tories - including the shadow business secretary himself - have attempted to weather the storm.

"So far as I am concerned, we are fully committed to raising the threshold for inheritance tax in the first parliament of a Conservative government, as George Osborne has promised," Mr Clarke later claimed in a statement.

Garden items 'should be covered by home insurance'

Mon, 23 Mar 2009 03:03:45 GMT

Householders should ensure that garden items are included in home insurance policies, especially as the summer is drawing near.

According to Halifax, the number of garden thefts increased by 63 per cent during summer last year, with the cost of replacing stolen goods up by 12 per cent.

Criminals mainly took items such as tools, furniture and ornaments, the company revealed.

Halifax Home Insurance senior claims manager Martyn Foulds said it is vital that homeowners do not neglect gardens when buying policies.

"It is important for homeowners to bear in mind the value of items outside the home as well as inside, as the collective cost of patio furniture, barbecues and children's play equipment can soon add up," he said.

"We'd advise people to check that their home insurance policy protects against theft from the garden and we'd also recommend making life as difficult as possible for the opportunist garden thief."

Halifax offered a number of tips on how to deter criminals, such as putting bricks in the bottom of patio tubs so that they are difficult to carry.

Concerns raised over 'tax on jobs'

Fri, 20 Mar 2009 12:31:15 GMT

The Recruitment and Employment Confederation (REC) is "dismayed" that the government will remove the VAT staff hire concession from April 1st.

REC, along with other organisations, had been involved with a campaign to convince the government to wait until the economic downturn has eased before bringing in the change.

However, the government has said it will go ahead with the move.

"We are dismayed that even after producing evidence that up to 150,000 temporary jobs are at risk, the government - after many meetings - decided not to heed our advice to defer this tax on jobs," said REC chief executive Kevin Green.

He added: "We have consistently drawn to the government's attention the implications the concession's withdrawal will have on the supply of temporary staff to key sectors such as financial services, healthcare, education and charities."

The proposal to remove the concession was announced in last year's Budget and means that businesses "making supplies of staff as a principal" will be required to pay VAT in full.

BAE looking for efficiency

Fri, 20 Mar 2009 10:05:04 GMT

BAE Systems will focus on efficiency in order to meet any budgetary constraints, according to the managing director of the firm's military air solutions arm.

Kevin Taylor told attendees at a briefing that if the Conservatives win the next election, it is likely that a review of the UK's defence supply funding will take place, North West Business Insider reports.

However, he said that BAE would not be badly affected by any new limits on the public purse.

"All our current programmes are currently contracted. Any government will set funding to match the requirements of our armed services," the publication quoted him as saying.

"We have to give them value for money and focus on supplying an efficient service."

Earlier in the month, BAE confirmed that it had been handed a £450 million contract by the Ministry of Defence to maintain the RAF's fleet of Typhoon aircraft.

The firm said that 150 new jobs will be created as a result of the five-year deal.

APSCo announces executive members

Fri, 20 Mar 2009 10:04:15 GMT

The Association of Professional Staffing Companies (APSCo) has announced the makeup of its first executive committee.

According to the organisation, the 17 members have been selected from a broad range of industries, including IT, engineering and accountancy.

The committee includes chairman Richard Herring of Volt Europe, with Dawn Marriot-Sims of Capita and Uzair Bawany of Contact Recruitment taking the vice chair positions.

"The composition of the new executive reflects the rapid diversification of the Association's membership beyond the technology staffing sector since the creation of APSCo in January," said fellow committee member and APSCo chief executive Ann Swain.

"I am delighted to welcome these new members to our executive committee. Their energy and experience of the recruitment industry will ensure APSCo continues to put the interests of its members first."

APSCo was formed after the Association of Technology Staffing Companies (ATSCo) decided to widen its remit and include all recruitment firms that work with professionals.

Unemployed guide to contracting launched

Thu, 19 Mar 2009 03:21:36 GMT

A guide to contracting has been launched which aims to help freelancers when they find themselves out of work.

Created by the Professional Contractors Group (PCG), the document explains what benefits, such as jobseeker's allowance, unemployed freelancers can receive and how to get them.

PCG managing director John Brazier said that the recession and the uncertainty over the UK's economy meant that it is "essential" contractors are able to use the benefits system if they need to.

"Regrettably, eligibility rules are particularly complex for freelancers, to the point where there is confusion over whether they are entitled to claim at all," he added.

"PCG's guidance gives clear advice on freelancers' eligibility."

The guide, available here, provides advice for all kinds of self-employed contractors, including limited company owners, sole traders and umbrella workers.

According to the latest figures from the Office for National Statistics, more than two million people in the UK are now unemployed, the highest the figure has been since 1997.

Public 'misunderstand' inheritance tax

Thu, 19 Mar 2009 03:20:50 GMT

The public find it difficult to understand the complexities of inheritance tax and as a result are paying far more than needed, according to financial services trade association the Tax Incentivised Savings Association (TISA).

Tony Vine-Lott, director general of the group, said that many people could be wasting thousands by not calculating the tax correctly.

His words echoed a recent study by professional advice site Unibased.co.uk which claimed that £10 billion will be paid unnecessarily in "death duties" this year, a rise of £300 million from 2008.

"People seem to think that capital gains tax is only on the house and often forget about the other assets and don't take into account things like debts," Mr Vine-Lott said.

"This might suggest people are a little bit naïve or ignorant when it comes to inheritance tax and could be the reason why people often seek professional advice on this."

The Conservatives have pledged to raise the inheritance tax threshold to £2 million if they win power at the next general election.

Potential employers 'check social networking sites'

Thu, 19 Mar 2009 03:20:30 GMT

Businesses are looking at potential workers' social networking profiles in an effort to find out more about them, according to new research.

A study by consultancy firm DDI revealed that a quarter of job interviewers worldwide check sites like MySpace and Facebook for additional information on candidates.

Of those who do, more than half said their findings had impacted on whether or not the person was hired.

DDI vice president for Europe Steve Newhall warned that individuals should not put anything on a social networking site that they would not want a prospective employer to see.

"It’s difficult to gauge when looking at Facebook-type data if the information is true or has any relevance for the job role in question," he said.

"A well-planned and conducted selection process will uncover relevant information about candidates' ability to do the job."

However, UK interviewers were found to be the least likely to check profiles, with just 12 per cent reporting that they do so.

Shopping around 'vital' for PPI

Wed, 18 Mar 2009 03:33:55 GMT

Consumers considering payment protection insurance (PPI) should shop around before buying a policy, according to research firm Defaqto.

PPI has received a large amount of criticism over recent months, but Defaqto predicts that many people are likely to look for the cover as redundancies rise and the recession continues.

However, Brian Brown, head of insight at the firm, warned that time should be taken and various factors should be considered before buying PPI.

"Customers might take little persuading to buy protection cover, but they should look before leaping in to buy cover," he said.

"At the very least people should think about their priorities. For instance there is little point taking PPI cover for your credit card bill or a loan if you haven't first protected your mortgage."

Figures released today from the Office for National Statistics revealed that unemployment in the UK reached 2.03 million in the three months to January, the first time the figure has been above two million since 1997.

ISA allowance deadline approaching

Wed, 18 Mar 2009 10:46:15 GMT

Consumers have been advised to ensure they do not miss out on the £3,600 tax-free cash ISA allowance when the current financial year ends.

Recent research from the Post Office found out that many UK citizens do not take advantage of the tax break each year, totalling £1.33 billion in unnecessary interest payments.

The company suggested that the historically low Bank of England base rate - which now stands at 0.5 per cent - has put people off saving.

However, there is still ways to make money from a nest egg, the Post Office added.

"Taking advantage of the tax breaks available will earn savers extra money and can help supplement losses in their taxable savings accounts," said Richard Norman, director of savings at the company.

"However, the deadline for this year's tax allowance is fast approaching so people need to act quickly if they want to take advantage of this year's allowance."

The current financial year ends on April 5th.

Credit crunch 'wiped out £1.9tr of household wealth'

Tue, 17 Mar 2009 05:01:48 GMT

The credit crunch has reduced household wealth in the UK by £1.9 trillion since July 2007 - amounting to £40,000 per adult, according to PricewaterhouseCoopers (PwC).

New research from the company found that housing and equities wealth has dropped by 28 per cent.

A lack of mortgage availability, along with other factors, has pushed down house prices to about 20 per cent of their peak, equating to a loss of £800 billion.

However, there have been more significant falls in equities wealth, with the 40 per cent slump in the stock markets causing losses of roughly £1.1 trillion.

"The knock-on effect of this level of wealth destruction will result in significantly more belt tightening and reduced spending by households over the next year and this situation could be exacerbated by expected further falls in house prices over this period," said PwC head of macroeconomics John Hawksworth.

However, he added that the Bank of England's recent base rate cuts, as well as some of the government's stimulus packages, are beginning to take effect, meaning economic recovery should begin in 2010.

BT wage freezing 'won't hit self-employed contractors'

Tue, 17 Mar 2009 02:39:37 GMT

Self-employed contractors working in BT's IT department will not be hit by the company's wage freeze.

A spokesman for the firm told Contractor UK, the move will only apply to internal staff, with contractors' pay decided upon by the recruitment firm that hires them.

However, BT group HR director Alex Wilson did reveal in a letter to staff that it would be "replacing agency staff and contractors with our direct employees, and reducing external recruitment".

The firm's 100,000 UK-based employees - including chief executive Ian Livingston - will see pay frozen for a year.

BT also announced last year that it would be shedding 10,000 jobs in an effort to reduce costs, following poor financial results.

The company's profits for the three months to the end of December last year dropped by 80 per cent, to around £113 million.

However, it still intends to go ahead with its £1.5 billion project to deliver fibre broadband to ten million UK homes by 2012.

Mortgage availability 'not affecting agent complaints'

Tue, 17 Mar 2009 10:50:33 GMT

Sales disputes between estate agents and members of the public have not lessened despite the lack of mortgage availability in the UK.

According to the Ombudsman for Estate Agents Christopher Hamer, there was just a three per cent decline in disagreements in 2008, despite actual property transactions dropping by 60 per cent.

"I am surprised that my workload in sales disputes has not reduced more significantly," Mr Hamer said.

"Perhaps it shows that buyers and sellers have still higher expectations of agents' service whilst there are so few properties being sold."

However, Mr Hamer added that he expects this trend to end soon and predicted that most of his work in 2009 will involve disputes between landlords and tenants.

This was backed up by figures released today (March 17th) by the Financial Services Authority which showed that the slowdown in mortgage lending has continued.

New lending stood at just £45 billion in the final quarter of last year, down from a peak of £102 billion in the third quarter of 2007.

Proposed mortgage rules criticised

Tue, 17 Mar 2009 10:50:29 GMT

The Financial Services Authority (FSA) has been criticised for its plans to cut out "risky" mortgage lending by banks and building societies.

Lord Turner, the organisation's chairman, is widely expected to introduce new rules this week which will limit a mortgage to three times the borrower's annual salary.

The FSA is also predicted to introduce a ban on 100 per cent mortgages.

However, independent mortgage advisor John Charcol said that the measures would prove to be counter-productive.

"Why should someone who chooses to allocate a higher proportion of their income to their home than someone else for whom a maximum of three times income may be appropriate because they choose to spend more on, [for example] cigarettes, alcohol, eating out, clubbing and holidays, be penalised?" the company said in a statement.

The firm also warned that homeowners who have already borrowed at a higher rate than three times their income would be "at the mercy of whatever uncompetitive rate their current lender chose to offer them" if they chose to remortgage or move house.

Banking IT spend 'to fall by $40bn'

Fri, 13 Mar 2009 03:10:36 GMT

The world's banking technology spend is set to drop by nearly two per cent this year, although the UK will be the worst hit, losing nearly seven per cent of its budget, according to a new report.

Research by analyst firm Datamonitor has predicted that the banking technology sector will remain sluggish until 2012, by which point it will have $40 billion (£29 billion) less to spend than had been predicted before the credit crunch.

However, the report did find that banks will still need IT services, with systems needing to be integrated after mergers and other upheavals.

Additionally, Datamonitor's financial services technology analysis director Daniel Mayo suggested that it would be internal IT staff that would suffer most.

"This is a major structural shift in banking and banks will need to adjust their operating cost bases accordingly," he said.

"Banks are more open than ever to alternative sourcing approaches and internal IT departments will likely bear a significant brunt of IT spend reduction pain."

Concern over foreign IT worker figures

Wed, 11 Mar 2009 03:31:53 GMT

Almost three times as many IT workers from outside the EU entered the UK in 2008 than during the dot com boom, official figures have revealed.

The Association of Professional Staffing Companies (APSCo) obtained the data from the Home Office under the Freedom of Information Act.

More than 35,000 UK work permits were granted to IT professionals from outside the EU last year, compared to just under 13,000 in 2000.

APSCo expressed concern over the figures, claiming that many firms use intra-company transfers to bring in workers, allowing them to avoid advertising in the UK first.

"There is currently no requirement for companies to advertise vacancies in the UK before bringing workers in on intra-company transfers," said APSCo chief executive Ann Swain.

"In view of the significant increase in unemployment in the IT sector in the UK the government should review this rule and consider making companies tap the UK labour market first."

The vast majority of non-EU nationals - 29,400 - came from India, while the USA provided the next largest amount with 1,635.

Microsoft 'will not reduce UK self-employed contractors' pay'

Tue, 10 Mar 2009 02:37:26 GMT

Software giant Microsoft has denied that its self-employed contractors in the UK will be hit by a pay reduction which has been introduced in the USA.

A number of the American workers were unhappy with the ten per cent cut in pay and protested near the firm's corporate headquarters in Redmond, Washington.

The rally was organised by Microsoft-contracted software designer Phil Palios, who emailed thousands of his peers asking them to join.

However, a Microsoft spokeswoman told Contractor UK that the company has "no plans" to bring in similar cuts to UK-based self-employed contractors' pay packets.

The controversy over Microsoft's plans also included a request from US senator Charles Grassley, who said that planned redundancies at the company should fall on non-US citizens first.

But Microsoft responded by saying that cuts would be made across the company, regardless of citizenship.

"We take care to make all employment decisions, including the termination of employment for any individual, in a manner that complies with title VII of the Civil Rights Act of 1964," said Microsoft general counsel Brad Smith in an open letter.

Growing demand for temporary healthcare professionals

Tue, 10 Mar 2009 11:18:15 GMT

Attempts by the government to improve the NHS have led to a large increase in demand for temporary healthcare professionals, according to a recruitment firm.

Pulse has recorded a 20 per cent rise "across the board" for healthcare professionals, in both a temporary and permanent capacity, commercial director Kate Harris explained.

She believes that this increase in demand is not a "short-term blip" and is instead indicative of a larger trend, created by government policy.

"The reduction of waiting list times has had a significant impact on employment as healthcare trusts are measured on their ability to meet these targets," she explained.

"So from surgeons through to rehabilitative staff the demand for staff is increasing every step of the way."

The data from Pulse corresponds with the REC/KPMG monthly report on jobs published earlier this month, which found that healthcare was the only sector which had not seen a sharp decline in the demand for staff.

Tax haven worries over crackdown plans

Mon, 09 Mar 2009 06:04:37 GMT

Some of the UK's so-called tax havens have responded to reports that they could soon face a crackdown from the world's leaders.

Both Gordon Brown and Barack Obama have expressed a desire to tackle the business practices of Crown Dependencies and Overseas Territories such as Jersey and the Cayman Islands.

Additionally, a report by the TUC suggested that the British economy loses out on £4 billion annually as a result of UK residents who use tax havens.

Liberal Democrat Treasury spokesman Vince Cable has also said that the global economic crisis should act as a catalyst in dealing with the issue of offshore tax avoidance.

However, according to the Financial Times some of the havens have spoken out about any potential legislation taking a homogenous approach.

"The thing we worry about is we are being tarred with the same brush as everyone else," Geoff Cook of Jersey Finance, the firm which looks after the island's financial services sector, told the newspaper.

RBS not passing on base rate cut

Fri, 06 Mar 2009 06:08:44 GMT

RBS/NatWest will not pass on the Bank of England's base rate cut to its variable rate mortgage clients, the bank has announced.

Despite being majority-owned by the taxpayer and the government's efforts to get the mortgage market moving, RBS said its standard variable rate (SVR) is already competitive.

Other mortgage lenders - including Halifax, Lloyds TSB, Nationwide and Skipton - have pledged to pass on the Bank's 0.5 basis point cut to SVR customers.

RBS claimed that the move would also help its savings customers.

"The continued downward trend [of the] Bank of England base rate has had a significant impact on customer savings rates," said Paul Geddes, chief executive of RBS retail banking.

"It is more important than ever to consider both our savings and mortgage customers when determining any rate changes."

The Bank's Monetary Policy Committee announced the new base rate of 0.5 per cent yesterday (March 5th).

It is the lowest the rate has been in the Bank's history.

EU judges rule in favour of UK retirement law

Fri, 06 Mar 2009 06:08:15 GMT

The European Court of Justice (ECJ) has ruled in favour of the UK's compulsory retirement age of 65.

Charity Age Concern had brought the case to the European court, suggesting it breached EU rules.

It followed a High Court ruling which had also backed that the law, which can see employees dismissed on their 65th birthday without any redundancy package.

Age Concern had argued that the rule fell foul of the EU's Equal Treatment at Work Directive, but the ECJ said it was lawful as long as it had a "legitimate aim" which was linked to employment or social policy.

The charity's director general Gordon Lishman said that his organisation will "continue the fight".

"It is time for ministers to find the courage of their convictions and abolish the default retirement age without further delay."

However, British Chambers of Commerce director general David Frost welcomed the decision.

"The right to request a postponement to retirement already exists, so there is no need to try and remove what should be a normal process of communication between employer and employee," he said.

Creative freelancers of the year named

Fri, 06 Mar 2009 06:07:59 GMT

A number of freelancers in the marketing, media and communications industries have been rewarded for their work at Xchangeteam's Freelancer of the Year Awards.

Anna Cowie, a freelance designer, scooped the prize for both best design freelancer and overall freelancer of 2008.

The judges said that she was chosen because of her work on airline Emirates' staff headquarters' brand experience.

"I never see creativity as a job. I love what I do so giving passion and energy to it comes easy to me," she told FreelanceUK.

Ian Beaumont, director of communications at Bowel Cancer UK, was given the public affairs prize for the second year running.

The awards have been running since 2003 and last year's main prize winner was Rona Levin, who said that the event had had a "huge impact" on her career.

"Freelancers usually work in the background and don't seek attention for their work, but one person really can make a difference which others value," she added.

"The awards recognise that contribution and celebrate it."

ISA customers 'missing out on tax savings'

Thu, 05 Mar 2009 04:47:26 GMT

Two separate reports have claimed that many Brits may miss out on tax-savings in their ISA accounts.

Both Birmingham Midshires and Nationwide have published research which shows a high proportion of savers have not used their full allowance.

The former suggested that two-thirds of ISA customers will miss out in terms of tax savings, while the latter estimated that £100 million could be paid out by savers in unneeded tax.

Andy McQueen, Nationwide's savings and mortgages director, said: "The end of the current tax year is fast approaching which means there's not much time left for consumers to make use of their ISA allowance."

Birmingham Midshires director of savings and investments Tim Hague went one step further and called on the government to increase the tax-free savings allowance "since this would give an additional incentive to save during times of falling interest rates".

Currently, Brits may save up to £3,600 in a cash ISA.

Financial services firms 'turning to self-employed contractors'

Thu, 05 Mar 2009 04:47:16 GMT

Many businesses in the financial services industry are looking for self-employed contractors to help meet demands without adding extra staff, according to a report.

The 2009 Financial Services Salary Guide from recruitment firm Robert Half found that temporary professionals with healthy experience in risk management, liquidity reporting and regulatory accounting are all being sought.

This trend is a result of companies being forced to downsize and then needing extra staff to meet workloads.

Robert Half's financial services team created the report based on discussions with bosses in firms of all sizes, conducted at the end of last year.

The leaders canvassed for the report also felt that many firms will be able to take advantage of the talent available as a result of others shedding workers.

Many financial services firms have been required to downsize as the industry was hit particularly hard by the credit crunch.

Big-name banks like RBS and HBOS had to take government money in order to survive and the latter has now merged with Lloyds TSB.

IT contractors 'need to get niche'

Wed, 04 Mar 2009 03:37:15 GMT

IT contractors who have "niche" skills will fare better in the financial services sector this year than those who don't, it has been claimed.

Paul Elworthy, associate director of banking and financial services IT recruitment at Hudson, explained to Contractor UK that the finance world has started to increase its hiring of IT contractors.

However, he suggested that this is a "seasonal trend" because January is usually when IT project budgets begin, rather than a sign that the credit crunch era is fading.

IT contractors with specialist knowledge on areas such as compliance will be "favoured" by employers over those with "wider and more shallow" skills, Mr Elworthy added.

Mr Elworthy also believes that pay levels are set to remain "pretty consistent" for the rest of 2009.

The claim that IT recruitment is on the increase backs up an earlier report from employee screening firm Powerchex, which found that the number of IT contractor positions available at financial services firms rose by 30 per cent in January.

HMRC change to dispensations 'good for umbrella companies'

Tue, 03 Mar 2009 04:46:22 GMT

Plans by HMRC to create an advisory system of benchmark scale rates for businesses to use to make subsistence payments is good news for umbrella companies.

According to Martin Hesketh, managing director of Brookson, the miss-selling of dispensations is a "significant issue" within the market.

Currently, employers must send HMRC reports of expenses an employee receives, unless a dispensation has been set up.

A dispensation is a situation where a rate is agreed upon by the business and HMRC, but the employer must still undergo a sampling exercise to ensure that the rate is set correctly.

However, the new proposals will see advisory rates used, allowing employers to avoid the time-consuming sampling exercises.

"This is good news for contractors and providers alike because clear rules will start to bring much needed transparency into the market," said Mr Hesketh.

"But this is only the first step; HMRC must tackle non-complaint providers who are both selling and applying dispensations inappropriately if we are to get to a truly compliant market."

Cost of Equality Bill 'minimal'

Tue, 03 Mar 2009 01:21:43 GMT

The Equality Bill will provide a "minimal" cost to employers and will actually benefit them in the long run, it has been claimed.

According to various reports, the bill could be in danger because both business secretary Peter Mandelson and chancellor Alistair Darling believe anything which could bring extra expenses to companies should be avoided while the recession continues.

However, Carolyn Jones, director of the Institute of Employment Rights, suggested that Lord Mandelson "doesn't seem to realise the world has moved on".

"If you take that line it suggests there is a cost to employers and we believe it's minimal," she continued.

"In the longer term [the Equality Bill] brings stability, it brings loyalty, it brings productivity. Once you add that in against initial running costs then it balances itself up."

The bill, which has been championed by equality minister Harriet Harman, would see a number of new rules brought into employment.

Age discrimination will be banned while public sector employers will be required to reveal their gender pay gap.

Recession 'encouraging self-employed contractor employment'

Tue, 03 Mar 2009 01:20:04 GMT

The recession in the UK has led to an increase in the number of businesses hiring part-time staff such as self-employed contractors, according to a new study.

Research from business advisers BDO Stoy Hayward found that, despite growing short to medium-term business confidence, the labour market has continued to show signs of a downturn.

The firm's employment index fell from 94.2 in January to 91.7 last month, indicating that 320,000 more people will find themselves unemployed in the next three month.

However, it would appear that the business world is dealing with the recession by adapting its employment model, rather than abandoning hiring altogether.

BDO found that 33,000 part-time jobs were created in October to December last year.

"Optimism remains low and businesses expect the economy to continue to contract, but companies are now adapting their business models for an uncertain future," said Peter Hemington, a partner at BDO.

"It's still too early to say if business confidence has hit rock bottom and we've already seen a number of false dawns, but this month's modest increases are encouraging."