Brookson News Feed - Contractor Industry News UK

Many savings providers 'do not keep customers informed'

Wed, 28 Jul 2010 04:43:47 GMT

Posted by Sarah Glenister

Many companies offering savings accounts do not inform their customers of changes to interest rates which could affect their money, new research has revealed.

According to a study by Which? Money, Cheltenham & Gloucester, Co-op, First Direct and ING Direct are the only providers that promise to notify consumers about any changes that would affect their cash.

However, this claim has been disputed by Barclays, which today (July 28th) released a statement arguing that, since November 2009, it had "gone beyond the regulatory requirement" to tell customers of alterations to their rates.

Chief executive of the consumer champion Peter Vicary-Smith commented: "Our rigorous research shows that outdated and inconvenient methods of notice on interest rate changes are keeping savers in the dark for longer."

With most banks, Which? noted, people relied on adverts in newspapers or visits to branches to find out changes to their accounts.

Many major institutions only notify customers if rates are cut by over 0.25 per cent or a series of decreases total more than 0.5 per cent over the course of 12 months, the study found.

Self-employed people critical to economic recovery

Wed, 28 Jul 2010 04:43:23 GMT

Posted by Sarah Glenister

Self-employed people are vital to the health of the economic recovery and tackling the budget deficit, one expert has argued.

Emyr Williams, director Bytestart.co.uk, suggested it was important that the government provides an environment in which minor firms could thrive.

"As the bloated public sector is shrunk it's vital that small businesses are there to provide employment and stoke the engine of the economic recovery," he said.

The expert's comments follow the release of figures from Bibby Financial Services, which found that 72 per cent of less-sizeable companies felt optimistic about their future, despite a drop in output of 12.4 per cent during the second quarter.

Indeed, Mr Williams noted that the early stages of the coalition government's rule have shown promise, describing the current leaders as more "pro-business" than its predecessor.

Although the public sector spending cuts are going to slow down the rate of the economic recovery in the short-term, he explained, it is likely to lead to a healthier fiscal situation in the future.

London Olympics to create contractor opportunities

Tue, 27 Jul 2010 10:20:30 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK could be among those to benefit from untapped 2012 Olympics opportunities.

According to a new report from Lloyds Banking Group, the London 2012 Organising Committee is procuring over £700 million worth of goods and services ahead of the event, opening up numerous new contracts.

With exactly two years to go until the opening ceremony, the company is urging small firms and contractors to take advantage of the opportunities available.

It points out that so far, contracts have been geared towards large companies, but as the Olympic venues take shape, there is a chance for smaller businesses and contractors to get involved in the supply chain.

"These contracts are truly wide open to businesses anywhere in the country, no matter what their sector," said Chris Daniels, head of Lloyds Banking Group's London 2012 business team.

Earlier this month, figures published by the Olympic Delivery Authority showed that there are now 6,450 people working on the construction of the Olympic Park and a further 2,909 contributing to the development of the Olympic Village.

29% of Brits 'would make savings over the phone'

Mon, 26 Jul 2010 04:51:39 GMT

Posted by Sarah Glenister

As many as 29 per cent of British people would consider taking on a telephone savings account with a good interest rate, a study has found.

Research conducted by BM Savings has found that many people do not like leaving their mobiles at home and many would use them for banking.

In fact, 51 per cent of Britons claimed they would not go out without their phones, while 44 per cent said they could not live without the communications device.

When it comes to banking on the blower, 52 per cent of respondents claimed that this was the most convenient way for them to conduct their affairs, with 49 per cent saying that this was because they liked to speak to a real person.

Meanwhile, 60 per cent of 45 to 54-year-olds said they couldn't make it to a branch and preferred to phone their financial institutions because they could then organise their savings from anywhere.

This follows calls from the Fair Investment Company to provide more options for those who would like to make savings for children by reintroducing Isas for kids.

Economic growth 'better than expected'

Mon, 26 Jul 2010 10:29:47 GMT

Posted by Alex Turner

Contractors working as limited companies or sole traders may be encouraged by the news that the UK economy grew at a much faster pace than expected in the second quarter of the year.

Official figures show that gross domestic product increased by 1.1 per cent during the April to June period £ almost double the previous forecast of 0.6 per cent.

The Office for National Statistics said the growth was down to expansion "across the board" in services, construction and production.

In a statement, it confirmed: "The largest contribution to the growth in this quarter was from business services and finance.

"There was also growth in distribution, hotels and restaurants and in government and other services but transport, storage and communication declined."

Howard Archer, an economist at IHS Global Insight, described the figures as "absolutely incredible" and said they were way above all expectations.

In the first quarter of the year, the UK economy grew by 0.3 per cent.

Interest rates 'to remain at record low' until 2014

Mon, 26 Jul 2010 10:26:13 GMT

Posted by Alex Turner

Contractors who are concerned that interest rates will soon start to rise again may welcome a new report by the Ernst and Young Item Club.

The economic forecaster has predicted that borrowing costs will remain low for another few years.

It said it expects the Bank of England to keep interest rates at the record low of 0.5 per cent until 2014.

The Monetary Policy Committee cut rates to their current level in March 2009 and they have remained unchanged since then.

In its report, the Item Club said a low interest rate environment would need to continue in order to offset the impact of the government's spending cuts.

"A base rate of 0.5 per cent will begin to look like the new normal," claimed spokesman Professor Peter Spencer.

"I have no doubt that if the Bank does raise rates, it will then be forced to reduce them," he added.

REC advocates entrepreneurship

Fri, 23 Jul 2010 11:53:10 GMT

Posted by Alex Turner

The Recruitment and Employment Confederation (REC) has claimed that the current employment environment in the UK should encourage entrepreneurship among Britons.

This could inspire a number of people to set out working for themselves as sole traders or limited companies.

According to the organisation, young people stand a better chance of gaining employment in the current market by looking at alternative routes.

It follows the 60th birthday of one of the UK's most successful businessmen Richard Branson, which has seen entrepreneurship covered by the media in recent weeks.

Sam Strange, director of the REC's Business Support Unit, said: "The current environment makes it necessary for young people to start looking for alternate ways of getting on the jobs ladder and sometimes, one good, marketable idea can provide the catalyst.

"Entrepreneurship can be enhanced through effective support structures - it is a source of innovation and individual fulfilment that we need to do more to tap into. In addition, it is increasingly recognised as a key driver for future job creation as new businesses flourish and expand."

Report shows increase in IT recruitment

Fri, 23 Jul 2010 11:52:37 GMT

Posted by James Curtis

The IT jobs market has improved over the last three months, according to a new report.

This could come as good news to a number of sole traders and limited companies working in the UK.

Recently-released figures from recruitment website CWJobs.co.uk have revealed that 8.1 per cent more jobs were advertised in quarter two compared to the first three months of the year.

The report also showed that software developers remain in high demand, with developers of all levels accounting for 41 per cent of all IT jobs advertised.

According to the report, the top skill demanded by recruiters in the current market is SQL, with SQL server skills also highly sought after.

"From the start of the year demand for developer-type roles has gone up by 15.1 per cent," the firm explained.

"Elsewhere, prospects are equally as good with virtually all vacancies such as support, administration and networking increasing in volumes."

Contractor interview expenses explained

Fri, 23 Jul 2010 09:57:51 GMT

Posted by James Curtis

Contractors working in a wide range of industries could be among those to benefit from new advice regarding interview expenses.

Responding to a question on advice website ContractorUK's Expert Answer series, former HM Revenue & Customs tax inspector Bob Jones explained that the ability to claim travel expenses on interviews depends on whether a contractor operates as a limited company or through an umbrella firm.

The comments were in response to a contractor's query about how to claim the £200 costs incurred while travelling to an interview overseas in the most tax-efficient manner.

He explained that umbrella contractors will be unable to claim the costs as an expense as they will be seen to have been incurred outside of employment.

"Moreover, expenses have to be paid out of income and if there is no income (as the job has not materialised) then there is nothing against which the expense can be set," he added.

"On the other hand, if you are working through your own limited company and the company foots the bill, then the test is less strict - namely it has to be 'for the purposes of the trade.'"

Contractors could be encouraged to seek the advice of a specialist accountancy service for the avoidance of doubt over expense claims.

FSB calls for LBRO overhaul

Fri, 23 Jul 2010 09:49:50 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK could be among those to be encouraged by new calls for better local regulations.

The Federation of Small Businesses (FSB) has called on the government to implement a series of changes in the way business regulations are upheld.

It follows an announcement from the coalition that the Local Better Regulation Office (LBRO) is set to undergo a review.

The FSB has welcomed the review, but at the same time expressed caution that the LBRO could end up being scrapped.

John Walker, the organisation's national chairman, said the "vital" regulatory body is in need of an overhaul but should continue to function.

"Creating a robust relationship between small firms and regulatory services locally should be a high priority for the coalition government if they are to truly deliver on their pledge to cut red tape," he commented.

"At the FSB we know that small businesses prefer to receive information from a local, single source and so this power should be provided locally."

Brookson passes FCSA code of conduct review

Thu, 22 Jul 2010 12:11:53 GMT

Posted by Alex Turner

Contractors working in various UK industries could be among those encouraged by the recent launch of a new code of conduct for umbrella firms and businesses providing accountancy services to small limited companies.

The Freelancer and Contractor Service Association (FCSA) recently raised the compliance stakes in the industry by initiating a series of reviews, which are being carried out by an independent "big four" accountancy practice.

Brookson, one of the founding members of the FCSA, which was formerly known as the Service Providers' Association, has become one of the first firms to pass the new review process.

As part of the review, companies will be subjected to a "challenging questionnaire", an on-site audit and further investigation of director quality and company finance.

All audit documentation will then be passed on to HM Revenue & Customs (HMRC).

FCSA chairman Stuart Davis told advice website Contractor Calculator: "Contractors will benefit from the knowledge that, if they choose an FCSA service provider, that supplier meets the stringent requirements of the FCSA code of conduct.

"And that code has been developed with contractors' interests at its heart, plus with significant input from HMRC, the Recruitment and Employment Confederation and the Association of Professional Staffing Companies."

Contractors warned to 'tread carefully' with 'troubled' firms

Thu, 22 Jul 2010 11:27:55 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a range of UK industries could be among those to benefit from the advice of one recruitment specialist.

Richard Herring, European staffing services director at Volt, noted that a number of London-based firms are "taking their finger off the pause button" by reigniting projects that have been on hold for as long as 18 months,

However, he said that contractors should express caution when supplying services to companies that are likely to struggle in the current climate.

In an interview with Contractor UK, the expert also said that despite increases on this time last year, contractor pay rates are likely to remain relatively low for some time.

"Clients are more realistic, acknowledging the need to maintain 'business as usual' while using contractors because they are taking their time bringing on the right person permanently," he said.

"[So] pay rates may take some time to reach pre-recessionary levels, but they are better than they were six to 12 months ago."

Recently-published figures from ReThink Recruitment showed that 64 per cent of the UK's IT vacancies were based in London and the south-east in June.

IR35 replacement will take time, says OTS

Thu, 22 Jul 2010 11:14:34 GMT

Posted by Alex Tuner

Drawing up measures to replace the controversial IR35 tax legislation will take time and proposals will not be made until next year's Budget, the Office of Tax Simplification (OTS) has said.

This could come as a blow to a number of sole traders and limited companies in the UK who were expecting a quick turnaround after the OST launched a review of IR35 and small business taxation.

John Whiting, tax director at the OTS, told news provider ContractorUK that any alternative measures will need to consider the income sources of the country's contractors.

The expert said immediate changes or abolition are out of the question as if there were an easy way for this to be achieved it "would have been done already".

He added that the OTS is looking to work on proposals to submit to chancellor of the exchequer George Osborne and exchequer secretary David Guake.

"They will be able to accept or reject our reports because ultimately they have the responsibility for the tax system," he told the website.

"But I would hope that if we do our job properly, our recommendations will be easy to follow; and if they do reject unreasonably, they will get lots of questions as to why."

Does the tax system take up too much time?

Thu, 22 Jul 2010 09:49:35 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK could be among those who have to spend too much time worrying about tax compliance.

The Chartered Institute of taxation (CIOT) has said that the complex nature of the UK's tax regime means that smaller enterprises have to spend a disproportionate amount of time on administration.

Andrew Hubbard, immediate past president of the CIOT, said the tax environment is "very unstable" due to changes being made on an annual basis.

He claimed that this has led to there now being "lots of anomalies in the system".

"We need to create stability so that someone setting up a small business knows what tax regime they are going to need for the next five years, and all around ease of operation because the burdens on small business in terms of running the tax system take up a disproportionate amount of time," he added.

It follows the creation of the government's Office of Tax Simplification, which is set to carry out a review into small business taxation, including the controversial IR35 tax legislation.

REC to host AWR update

Wed, 21 Jul 2010 10:40:38 GMT

Posted by James Curtis

UK contractors could be among those to benefit from a new event updating recruitment firms about the agency workers regulations (AWR).

The EU-inspired regulations are set to come into effect on October 1st 2011 and the Recruitment and Employment Confederation (REC) is to hold an online event for its members to update them with "key challenges" the implementation will present.

On Thursday (July 22nd), the organisation will host a webinar, in a bid to provide recruiters with the practical guidance and support needed to prepare for the AWR's launch.

Tom Hadley, the REC's director of external relations, said: "An overriding priority for agencies is to demonstrate the added value that they provide their clients.

"Being ahead of the game on new regulations and being able to work with clients to implement changes such as the AWR is one of the best examples of added value that there is."

The event will focus on how to calculate the AWR's 12-week qualifying period as well as helping recruiters understand the "pros and cons" of the new model.

PCG welcomes 'prompt' launch of OTS

Wed, 21 Jul 2010 10:38:21 GMT

Posted by James Curtis

The Professional Contractors Group (PCG), the self-styled voice of freelancing, has welcomed the "prompt" launch of the government's new Office of Tax Simplification (OTS).

Setting up the office was announced in the emergency Budget in June and the PCG has voiced its "delight" that the coalition has acted quickly to "make good" on its commitment.

The OTS has been instructed to carry out a review of small business taxation in the UK as its first task.

This could have a positive effect on sole traders and limited companies as the controversial IR35 legislation is set to be included in the review.

John Brazier, managing director of the PCG, said: "We are delighted that the government has now set up this vital office and that they have already set out the terms of reference for a small business tax simplification review, including IR35.

"The fact that IR35 has been highlighted as a priority is good news. We will be working to ensure that this iniquitous tax will go and that all freelancers and small businesses will be able to operate within a fairer and more transparent tax system."

CIOT welcomes IR35 review

Wed, 21 Jul 2010 09:59:49 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a number of UK industries could be among those to benefit from a new review of the country's small business taxation.

The coalition government has announced that the first task of its Office of Tax Simplification will be to review small business taxation, including the controversial IR35 legislation.

This has been welcomed by the Chartered Institute of Taxation (CIOT), which said the UK's system needs an increase in "certainty, simplicity and stability".

Colin Ben-Nathan, chairman of the organisation's employment taxes sub-committee, said: "In a modern, flexible labour market, workers and engagers should be free to form the contractual relationships they choose, without having their arrangements second-guessed because the tax consequences of their choice differ from those of another possible arrangement."

According to the CIOT, the review is long overdue and will finally "even the playing field" for the UK's small businesses.

Website exposes flaw in HMRC IR35 review service

Tue, 20 Jul 2010 11:50:04 GMT

Posted by Alex Turner

Contractors working in the UK have been reminded of a service provided by HM Revenue & Customs (HMRC) to provide clarity over IR35.

HMRC's Contract Review Service will let a contractor know their status with regard to the controversial tax legislation.

However, a number of limited companies and sole traders could be encouraged to consult a specialist tax accountant after advice website Contractor Calculator explained that HMRC will only review a contract once it has been entered into.

The website commented: "Those who then choose to dispute the findings of HMRC's IR35 unit can find their battle to prove their innocence drag on for years, costing significant sums in professional fees, back taxes, interest and penalties."

Contractor Calculator advised not to seek an HMRC review once a tax specialist has declared a contract out of IR35 as HMRC's opinion could differ and it would cost a lot of time and money to prove otherwise.

By consulting an expert, the website added that contractors can demonstrate "duty of care" if they are subsequently investigated by HMRC.

Vince Cable: Lending figures are misleading

Tue, 20 Jul 2010 11:49:26 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a range of UK industries could be among those being misled by bank lending figures, it has been suggested.

The Royal Bank of Scotland and the Lloyds Banking Group recently stated that 80 per cent of the business loan applications they receive are being approved.

This rate is also being upheld by the rest of the UK's banking industry, according to Simon Pegge, chairman of the British Bankers' Association.

However, business secretary Vince Cable has said obtaining credit is harder than the banks are making out, describing the figures as "misleading".

He commented: "This is misleading. I think they are raising the hurdle.

"All the evidence from business, from the Institute of Directors (IoD) and other bodies, is that banks are not lending as much as is needed."

A recently-released report from the IoD revealed that 39 per cent of its members applied for bank credit in the first six months of this year.

However, 33 per cent of those applications were declined by the financial organisations.

REC issues legal update

Tue, 20 Jul 2010 10:50:06 GMT

Posted by Alex Turner

UK contractors could be among those to benefit from the publication of a new legal bulletin.

The Recruitment and Employment Confederation (REC) has published a document highlighting changes to the law since the election.

It is hoped the document will provide recruitment firms with an up to date guide of what has changed and what is set to change.

The REC said the bulletin includes information on the delay of voluntary registration with the Independent Safeguarding Authority, which has been put in place while the government reviews the Vetting and Barring Scheme.

Fiona Coombe, the organisation's director of professional services, said: "David Cameron called for change this year on the campaign trail and this certainly seems to be the theme for the early days of the coalition government.

"But a number of changes were already in the pipeline and it remains to be seen whether planned legislation will go ahead with alterations or at all."

Contractors urged to supply clients with terms and conditions

Tue, 20 Jul 2010 09:54:36 GMT

Posted by James Curtis

Contractors working in the UK as sole traders or limited companies could be among those to benefit from new advice on how to avoid client disputes.

Blythe Valley, a leading insurance specialist, told information website Freelance Adviser that contractors should include terms and conditions up front in order to clarify the business relationship between them and the client.

The firm said written terms and conditions should be an "essential part" of a contractor's business tool kit.

According to the company, producing such a list will enhance the professional image of a contractor, showing prospective clients that they take their business seriously.

"Terms and conditions don't have to be lengthy or complex. One page on the back of a quote or purchase order can often suffice and, as long as you can prove that you've presented the customer with your terms, you don't necessarily need them to return a signed copy," the firm explained.

Blythe Valley urged UK contractors to consult a well-briefed legal professional to draw up a relevant set of terms and conditions to be supplied with new quotes.

Martin Hesketh, Brookson managing director, commented: "This is common sense advice to anyone who is in business of their own account. It is an excellent way for limited company contractors to ensure that there is a contract in place which accurately demonstrates their independence from the client for IR35 purposes and gives some protection if things go wrong.

"Working with a business which has its own terms and conditions also gives clients confidence that they are dealing with experienced professionals. As ever, Brookson is on hand to provide advice and assistance in this regard and work closely with solicitors to ensure you receive accurate and workable documents at affordable prices negotiated exclusively for our customers."

Renewed confidence in marketing and design

Mon, 19 Jul 2010 11:52:14 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK's marketing and design sectors could be among those to be encouraged by a new report.

Recently-published figures from recruitment consultancy Aquent have revealed that the sectors are seeing "strong signs" of renewed confidence, according to online recruitment publication Onrec.

According to the firm's latest European Market Eye study, 80 per cent of firms in the marketing, advertising, design and digital sectors are predicting a rise in employees this year.

Peter Geary, Aquent's UK regional director, told the news provider: "The UK marketing and design sector was hit hard by the global downturn and after 18 months of little hiring across the industry, we're certainly now seeing signs of recovery and the market hotting up.

"It is especially interesting to see the boom in recruitment for the digital sector as web 2.0 becomes an increasingly important tool for businesses looking for new ways to engage with their customers."

Red tape is like an additional tax, says FSB

Mon, 19 Jul 2010 11:36:26 GMT

Posted by James Curtis

Sole traders and limited companies operating in the UK could be among those to be affected by regulations that still "threaten" the country's business growth.

A recently-published report by the Local Better Regulation Office (LBRO) has revealed that growth is still affected by the burden of regulation but there are signs of improvement.

The study, which consulted 2,000 enterprises, showed that around half of respondents feel their local authority does not understand their sector well enough to regulate them.

According to the report, one in six businesses feel that complying with regulation is still their "biggest challenge".

Clive Davenport, policy chairman of trade and industry at the Federation of Small Businesses, said: "Small businesses create a huge proportion of the country's wealth yet are most vulnerable to inconsistency in regulation.

"Firms with few employees face considerable pressure on their time and resources, and are in no position to deal with overly complex administration. Red tape is like an additional tax."

IT contractor hiring on the rise

Mon, 19 Jul 2010 09:59:19 GMT

Posted by James Curtis

The hiring of IT contractors in the UK "surged" in June, according to recently-published figures.

This could come as good news to a number of sole traders and limited companies working in the UK's IT sector.

Data from a report by pre-employment specialist Powerchex has revealed that employment offers to IT contractors increased by 320 per cent between May and June this year.

The firm believes the surge can be attributed in part to a recruitment increase in the investment banking industry, as the two sectors are "highly correlated".

According to the firm, IT contractors are becoming more in demand as the number of approved technology projects in the finance sector is rising.

Alexandra Kelly, managing director of Powerchex, said: "Fears of a double-dip recession are beginning to dissipate.

"Recruitment in the financial sector has generally flattened in the last quarter, but IT contractor hiring shows signs of another round of optimism in investment banking this summer."

HMRC to increase 'costly' tax investigations

Fri, 16 Jul 2010 04:18:32 GMT

Posted by James Curtis

Contractors operating as sole traders or limited companies in the UK could be encouraged to seek advice from a specialist accountant as HM Revenue & Customs (HMRC) ups its investigation campaign.

Last month HMRC vowed to seize another £4 billion from investigations and UHY Hacker Young calculated at the time that the "more aggressive stance" would take the total amount to £16.1 billion in the 2010-11 financial year.

According to the firm, in order to achieve such a result HMRC is going to have to "widen the scope" of its operations.

It said this could lead to enquiries into marginal cases, which will increase the risk of innocent businesses being "caught in the net".

John Ierston, a partner in the firm's Chester Office, said: "£4 billion more tax is a massive increase that shows how urgently the Budget deficit needs to reduced.

"To achieve such an extreme target, HMRC will be forced to come down hard on legal tax avoidance and illegal evasion."

HMRC scored a record payment earlier this month after obtaining a confiscation order for £92.3 million from the proceeds of a VAT scam.

Brookson managing director Martin Hesketh commented: "This news is further evidence of HMRC's commitment to target tax evasion generally. At Brookson, we have always held the view that strong enforcement action is required by HMRC if they are to drive up levels of compliance across all tax legislation.

"For more than 14 years Brookson has emphasised the importance of compliance to all our customers. With the support of our in-house employment law specialists and tax advisors our customers continue to receive expert advice they can rely upon to ensure peace of mind in light of any increased enforcement from HMRC.

"It is now more important than ever for contractors to seek professional advice from specialist accountants and lawyers to ensure they are working compliantly and their financial and tax affairs are in order."

Contractors fill employment gap

Fri, 16 Jul 2010 11:35:38 GMT

Posted by Alex Turner

The rise in UK employment, recently announced by the Office for National Statistics (ONS), can be attributed to the increased use of temporary workers.

This could include a number of sole traders and limited companies working in the country.

Commenting on the ONS figures, the Chartered Institute of Personnel and Development (CIPD) noted that "all the net new jobs being created were either part-time, temp positions or filled by the self-employed".

However, Dr John Philpott, the CIPD's chief economic adviser, has claimed that the rise in unemployment could be the "calm before the storm".

The expert said that while the ONS figures are the best to be released since the start of the recession, things might not look so "rosy" next year.

"While the jobs market was clearly much perkier in the spring quarter, with close to 2.5 million people unemployed it is still far from in the pink," he commented.

"And with a big public sector jobs squeeze already underway and the pace of economic recovery uncertain, things may look a lot less rosy by spring 2011 than they do at present."

Contractors urged to prioritise

Fri, 16 Jul 2010 09:52:46 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a number of UK industries could be among those to benefit from new guidance from one freelance adviser.

Business mentor Toby Buckle recently told Freelance Adviser that prioritising and planning is a "key skill" for people to become great freelancers.

The expert said contracting provides workers with a great deal of freedom as they can essentially do what they want, when they want.

However, he added that in today's climate it can be easy for contractors to become distracted by emails, Twitter and other interruptions.

Mr Buckle also said that making time for other aspects of life can help contractors focus on work-related tasks.

"Make sure you pay attention to health, home and relationships and if you feel they haven't had attention recently blitz them," he advised.

"It doesn't need to be a whole day of focus, just an hour or two could do it. Doing this on a regular basis allows the focus to remain on work tasks."

Public sector can learn from private employers, says REC

Thu, 15 Jul 2010 10:56:44 GMT

Posted by Alex Turner

Public sector employers can learn from their private sector counterparts with regard to operating on a reduced budget.

That is according to the Recruitment and Employment Confederation (REC), which said by following the private sector's lead, the public sector can ensure that employment figures continue to rise.

This could mean a number of public sector employers increase their use of sole traders and limited companies to ensure projects are completed on time during times of spending cuts.

It follows the publication of Office for National Statistics figures , which revealed that the number of people who are out of work in the UK fell by 34,000 between March and May this year.

Kevin Green, the REC's chief executive, said: "These figures are an encouraging sign of the stability returning to the jobs market.

"But the public sector still has an opportunity to avoid massive job losses through learning from the private sector how costs can be reduced while at the same time, holding on to its best talent."

Recruiters voice concerns over industry regulation

Thu, 15 Jul 2010 10:56:12 GMT

Posted by James Curtis

Contractors working in the UK as sole traders or limited companies could be among those to be affected by a lack of confidence in the country's regulation of the recruitment industry.

A recently-published report by the Association of Professional Staffing Companies (APSCo) has revealed that just ten per cent of the UK's recruiters believe that current regulations are boosting the reputation of the industry.

The study also showed that more than half (52 per cent) would like to see the introduction of licensing, which would "drive out rogue agencies" and ease the sector's funding issues.

Ann Swain, chief executive of the APSCo, said: "The clear consensus among recruiters is that current regulation does little to enhance the professionalism of the industry.

"This is a concern as the negative perception of recruiters is a threat to margins. Whether the solution to this is better regulation, or some kind of kite mark or quality standard, needs to be debated further."

Legislating for contractors is a 'global challenge'

Thu, 15 Jul 2010 10:51:30 GMT

Posted by Alex Turner

Creating an environment that suits contractors with regard to taxation and business laws is a global challenge.

That is according to Dave Chaplin, chief executive officer of advice website Contractor Calculator, who said the issues facing UK sole traders and limited companies are seen in a number of other countries.

The comments follow the recent round table discussion event held by the Professional Contractors Group (PCG), which aimed to gain an understanding of how the contractor scene differs around the world.

Mr Chaplin said the event highlighted that the UK is not the only nation that suffers from "hostile" tax regimes, heavy regulation and a lack of political understanding.

"The 'third way' of working, that between employment and self-employment, is not properly recognised in most countries," he commented.

"This means that labour, business and tax laws are frequently drafted without taking into account the unique characteristics of contractors. PCG's event identified that legislating appropriately for contractors is a global challenge."

FSA announces end of self-cert mortgages

Thu, 15 Jul 2010 09:51:45 GMT

Posted by James Curtis

The Financial Services Authority (FSA) has published a series of mortgage proposals that could see the end of self-certification.

This could have an impact on a number of sole traders and limited companies working in the UK as mortgage providers will be obliged to verify a borrowers' income before a deal can be arranged.

Included in the publication are proposals for "affordability tests" to be imposed for all mortgages, verification of income in "every case" and extra protection for vulnerable borrowers.

The report also showed that almost half of all mortgages granted between 2007 and the first quarter of this year were provided without income verification.

Lesley Titcomb, FSA director responsible for the mortgage market, said: "There is a clear link between financial overstretch and mortgage arrears and repossessions, and we are determined to protect vulnerable consumers by making sure that everyone who takes on a mortgage can afford to pay it back."

REC report points to falling confidence

Wed, 14 Jul 2010 11:37:57 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in a wide range of UK industries could be among those to be affected by falling confidence among employers.

The latest JobsOutlook report by the Recruitment and Employment Confederation (REC) has revealed that a drop in employer confidence has hit demand for temporary and contract workers.

According to the organisation, this comes at a time when demand for such workers has been steadily building.

Roger Tweedy, the REC's director of research, said: "The uncertainty of the wider global economic situation and the contents of the much anticipated emergency Budget have made it difficult for employers to be more positive about their hiring intentions at this stage.

"The longer term trends are encouraging but we may now have to wait until the autumn for further positive momentum to return to the labour market."

Official employment figures are set to be released later today (July 14th) by the Office for National Statistics.

CIPD issues jobs outlook warning

Wed, 14 Jul 2010 11:37:29 GMT

Posted by James Curtis

Limited company contractors and sole traders working in the UK could be among those to notice a bleak jobs market if economic growth is weaker than predicted.

That is the view of the Chartered Institute of Personnel and Development (CIPD), which said that if the growth is just "slightly weaker" than that predicted by the Office for Budget Responsibility (OBR) then things will be "a lot worse" that the government hopes.

According to the CIPD, the UK's economy needs to grow by 2.5 per cent per year until 2015 if the private sector is to provide enough work to counteract a reduction in public sector activity.

The organisation said anything less would "seriously diminish" job prospects.

Dr John Philpott, chief economic adviser at the CIPD, commented: "Against the backdrop of massive public sector job downsizing it doesn't require anything like a double-dip recession to cause a serious prolonged jobs deficit.

"A slightly milder growth outcome – which many would consider a decent recovery in output given the various strong headwinds at present facing the economy – is easily as imaginable as the OBR's central forecast and would leave unemployment still close to 2.5 million by 2015."

Online job searches increase in post-World Cup climate

Wed, 14 Jul 2010 11:36:53 GMT

Posted by Alex Turner

IT contractors working in the UK as sole traders or limited companies could notice increased competition for jobs now that the World Cup is over.

According to a new report by global online competitive intelligence service Experian Hitwise, there has been a 23 per cent rise in the number of people conducting online job searches since England were knocked out of the competition.

Alex Farrell, managing director of The IT Job Board, commented: "Looking at the stats, it seems the World Cup acted as a real distraction from UK job searching; with the IT sector proving to be no exception.

"Our recent World Cup survey highlighted tournament fever was failing to distract UK IT departments, but this doesn't seem to be the case when it comes to IT pros' job searches."

Mr Farrell explained that since England's exit, the IT Job Board has seen a "real increase" in the number of people visiting and uploading CVs onto the site.

Contractors reminded of 24-month rule

Wed, 14 Jul 2010 09:47:20 GMT

Posted by James Curtis

Contractors working in the UK's technology sector have been reminded of the 24-month expenses rule.

Advice website Contract Eye recently published a "simple explanation" of the rules in order to make sure contractors know what they are entitled to claim.

The website explained that if a contract is to last fewer than 24 months, contractors are entitled to claim travel expenses to and from the "temporary" place of work.

However, for the avoidance of doubt, Contract Eye reminded workers that this entitlement stops as soon as it becomes apparent that a contract will exceed two years.

"This means that if you are aware from the outset of a new contract that the project is likely to last beyond 24 months, you must not claim any travel expenses between your home and place of work - from day one," the firm said.

The website urged contractors to seek professional advice before making a claim as the "40 per cent rule" can make calculation complicated.

"If you look back over the previous 24 months, and you spent 40 per cent or more time at your current workplace, you cannot claim travel expenses," it added.

Govt asks suppliers to cut costs

Tue, 13 Jul 2010 11:09:12 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK's technology sector could be among those to be affected by new government pressure on efficiency.

The coalition recently met with the heads of a number of service suppliers to discuss how they can help the government in its quest to save £6.2 billion by 2011.

Among the suppliers represented at the discussion were a number of technology firms including Hewlett Packard, BT, Capgemini, Fujitsu, IBM, Microsoft and Vodafone.

The 19 largest government service suppliers are now set to consult with the Efficiency Board to see how savings can be made.

Francis Maude, co-chair of the Efficiency Board, said: "I am laying down the challenge to major government suppliers to ask them what they can do to take costs out of contracts.
"Some of this will come out of margins, but we will also invite ideas on how we can structure things differently to reduce complexity and cost."

1.2% growth 'would not be bad'

Tue, 13 Jul 2010 10:49:21 GMT

Posted by Alex Turner

Contractors working as limited companies or sole traders in a number of UK industries could be among those encouraged by news the country's economy is expected to rise.

The latest forecast from the International Monetary Fund has predicted that the UK's economy will grow by 1.2 per cent this year.

This growth is expected to be followed by an increase of 2.1 per cent in 2011.

Martin Bamford, chartered financial planner at independent adviser Informed Choice, said the 2010 prediction would not be "a bad outcome" for the country.

"This level of growth would not be a bad outcome, following so much concern about a double-dip recession and the generally febrile state of economic recovery in the UK," he commented.

"Most of our exports go to Europe and the US, so the Asian market remains one with huge potential for the UK, as evidenced by the growing desire for UK insurance groups to boost their operations in Asian markets."

Recently-published figures from the Office for National Statistics revealed that UK GDP increased by 0.3 per cent for the first quarter of this year, 0.2 per cent lower than the first three months of 2009.

Lying on a CV could be a breach of contract, expert warns

Tue, 13 Jul 2010 09:36:17 GMT

Posted by James Curtis

UK contractors working as sole traders or limited companies have been warned not to lie on their CVs no matter how tempting it may be in the current climate.

Russell Dyer of Accendo Career Management Services said that contractors have a legal obligation to be honest on their CVs as they will form part of any contract that is drawn up with a client.

The expert was responding to a question on advice website Contractor UK's Expert Answer series, which saw one trader ask what the consequences would be of "talking up" his achievements.

"You must remember that the information you are giving your future employer or client, including the references, form part of a contract, and if you are found to be lying then you are in breach of that contract," said Mr Dyer.

"At best, the employer is under no obligation to keep you and, at worst, you could face criminal prosecution for fraud."

REC: GLA confirmation means recruitment standards to be raised

Mon, 12 Jul 2010 11:20:49 GMT

Posted by James Curtis

Contractors working in the UK could soon benefit from improvements in the country's recruitment industry following a government announcement on the Gangmaster Licensing Authority (GLA).

The coalition has written to the Recruitment and Employment Confederation (REC) to confirm that the GLA should not be extended.

According to the REC, this confirmation means the organisation will now be able to concentrate its efforts on raising standards in UK recruitment.

REC chief executive Kevin Green said: "We are delighted that the new coalition government has dealt with this matter quickly and effectively so that we can both concentrate on the real issues affecting our industry.

"Moving forward, the REC can now concentrate its efforts on raising standards in recruitment, as well as the reputation of our industry."

The comments come after employment regulations minister Edward Davey wrote to the REC to say that the government is committed to regulating recruitment through the Employment Agency Standards Inspectorate and other bodies.

Expert highlights the importance of completed contracts

Mon, 12 Jul 2010 09:51:36 GMT

Posted by James Curtis

Contractors in the UK should ensure all sections of a work contract are fully completed before signing the document.

This is the advice of Gary Cousins, a solicitor at Cousins Business Law, who said that not doing so could leave a limited company or sole trader having to complete tasks they are unable or unwilling to do.

The advice comes after a contractor wrote to advice website Contractor UK after noticing that the Statement of Work section of his contract had been left blank.

Responding to the query, Mr Cousins said: "It is dangerous to sign a contract that has not been fully completed and leave it for someone else to fill in later, despite what your agent might say.

"My advice is to go back to the agent and ask them to complete this part of the contract. If it is the case that the work detail isn't yet known, then they should amend the contract to make this clear."

Martin Hesketh, managing director at Brookson commented: "This is very sensible advice to all contractors. Not only will it enable you to charge for additional services as required and therefore maximise your income, but it will also help you to demonstrate that you comply with the IR35 legislation and are in business of your own account. It will also prove invaluable in the event of a dispute.

"Where relevant, Brookson customers are entitled to free and unlimited IR35 reviews as part of their standard service, ensuring total peace of mind when it comes to compliance."

Contractors 'should not be punished'

Fri, 09 Jul 2010 11:45:17 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK could be encouraged by recent calls for the government to work with service providers to cut the deficit rather than order them to reduce pay.

A number of contractors providing services for firms such as Capgemini, Capita and Serco could face a reduction in earnings after cabinet officer Francis Maude called the chiefs of such firms in for discussion, the Guardian reported.

According to the newspaper's Mark Kobayashi-Hillary, Mr Maude and the Office of Government Commerce are expected to make some "tough demands" including a cut in rates and the renegotiation of contracts.

Mr Kobayashi-Hillary said the demands are understandable but questioned the long-term benefit of such actions.

"Contractors are generally unloved, so it's easy to squeeze them," he said.

"Thumbscrews on suppliers in the full view of the media makes for an impressive spectacle – we are clamping down on cost. But the return of the clunking fist is unwelcome."

The expert said previous attempts to "screw down" prices in the IT and hi-tech services sector have shown that the "tough" stance does not always work.

Therefore, the government would be better served asking contractor chiefs to help it build a new public sector service strategy.

North-west recruiters to benefit from REC advice

Fri, 09 Jul 2010 11:44:48 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a wide range of industries in the north-west of the UK could be among those to benefit from forthcoming discussions.

The Recruitment and Employment Confederation (REC) is set to hold a series of discussion in the region later this month.

Recruiters in the area will be invited to discuss a number of issues facing the recruitment industry at the events on July 14th and 15th.

Kevin Green, REC chief executive, commented: "These discussions are very much driven by members who are facing many challenges including the huge cuts in the public sector and also the Agency Workers Regulations (AWR) which come into force next year.

"This is the ideal opportunity for our members to tell us about their most pressing concerns so that we can take on board their views for our future lobbying and campaigning work."

The AWR was laid before parliament earlier this year and will come into force from October 1st 2011.

Will IRP award boost contractors' confidence?

Fri, 09 Jul 2010 11:44:16 GMT

Posted by Alex Turner

The UK's limited company contractors and sole traders could be among those to have their confidence in the country's recruitment sector boosted by the awarding of a recent honour.

At the recent Trades Association Forum's Best Practice Awards, the Recruitment and Employment Confederation's (REC) Institute of Recruitment Professionals (IRP) picked up is second high-profile marketing award.

According to the organisation, the accolade will help it achieve higher levels of professionalism within the recruitment industry.

Anita Holbrow, IRP director and REC director of marketing and membership services, commented: "With such a landmark event as the launch of the IRP last June, we had to ensure that our offering to members was exemplary and this award is an excellent endorsement from the trades' association community that we succeeded in our aim.

"This gives us a real boost in our continuing drive towards the professionalisation of the recruitment industry through the IRP."

The award follows an earlier win for the IRP at a Memcom ceremony in May.

London and south-east prove hotspots for IT workers

Fri, 09 Jul 2010 09:52:17 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the IT industry in London and the south-east could be among those to be encouraged by a recent report.

Figures published by ReThink Recruitment have revealed that 64 per cent of IT vacancies in the UK were based in the areas last month.

This represents an increase on the 58 per cent concentration reported two years ago as the country entered recession.

Michael Bennett, director at ReThink Recruitment, said: "The financial crisis has prompted significant investment in compliance and risk management systems in the banking sector. We have seen a substantial increase in demand for candidates skilled in these areas.

"The wave of mergers between financial institutions brought about by the credit crunch has fuelled demand for IT candidates in London and the south-east to handle post-merger integration of banking IT systems."

Mr Bennett added that banks are now "kick-starting projects" which had been put on hold during the recession.

Demand for IT workers on the rise

Thu, 08 Jul 2010 12:02:06 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK's IT sector could be among those to be encouraged by a recent report.

The recently-published Report on Jobs from the Recruitment and Employment Confederation revealed that demand for IT professionals has increased in the last year, V3.co.uk reported.

According to the research, demand for temporary IT workers showed "significant" improvement, with the REC's index rising from 43.3 to 56.9 in the last 12 months.

The report marks demand on a sliding scale between 0 and 100, with a score of 50 representing no change and higher or lower score showing a rise or fall respectively.

Dave Pye, executive committee member of the REC technology sector group, told the news provider: "A lot of the growth we have seen has been for business technology skills, rather than just pure-play technology skills, for areas like financial services or pharmaceuticals, underlining demand for people that can get things done.

"The demand we have seen will ease off somewhat, but we still expect growth for the next few months as confidence continues to sustain the market and help companies grow."

According to the REC study, job availability for contractors and temporary workers across all UK industries also increased last month.

Expert urges use of flexible working

Thu, 08 Jul 2010 11:59:27 GMT

Posted by James Curtis

Contractors working as limited companies or sole traders in a range of UK industries could be among those to be encouraged by a recent call for private sector employers to embrace flexible working.

Mike Petrook, a spokesperson for the Chartered Management Institute, recently stated that the amount of hours that a person spends in their place of work is not as important at the results that they achieve.

The expert's comments follow the publication of a report from recruitment firm Hays, which showed that while public sector employers are embracing contractors for the specific skills they can offer, their private sector counterparts use them merely to keep permanent headcounts down.

"Flexibility is the key. As everybody knows, the UK is suffering from a skill shortage at the moment, so by being inflexible in terms of the type of employment that you're offering, your organisation could be shutting itself off to reams of top talent," he commented.

Contractors urged to keep on top of timesheets

Thu, 08 Jul 2010 09:59:54 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in a number of UK industries could be among those to benefit from recently-published guidance regarding timesheets.

Advice website Contract Eye has urged UK contractors to keep on top of their timesheets in order to minimise the risk of payment delays.

The website said that contractors should establish who will be in charge of counter-signing their timesheets immediately after a contract has been signed.

They should also confirm who will sign the documents if the primary signatory is unavailable for any reason, the website advised.

"Many contractors will have stories to tell about the difficulties they have had getting their timesheets signed on time," the website explained.

"You will typically need to submit your timesheet within a fixed time window to guarantee prompt payment. If you miss the cut-off date, you'll have to wait until the next weekly or monthly payment cycle," it added.

HP cuts will not affect contractors

Wed, 07 Jul 2010 11:57:44 GMT

Posted by Alex Tuner

Job cuts at Hewlett Packard (HP) will not affect the firm's 2,000 contractors, it has been announced.

HP recently revealed that it is to cut 934 jobs in the UK, where it currently employs 16,500 workers.

However, the company has assured the 2,000 people working on a temporary or contract basis that they will not be affected by the decision.

A spokesperson for HP told Contractor UK: "The changes HP is proposing are part of the company's ongoing review of its business that will ensure it continues to grow in a globally competitive marketplace and deliver world class products and services to its customers."

However, Peter Skyte, national officer of union Unite, has warned that those workers who remain at the firm could become more stressed as the amount of pressure put on them increases.

Adrian Treacy, an IT recruitment director, told the news provider that technology firms often choose to retain contractors over permanent staff in order to create a "more flexible workforce".

Economic recovery is still in early stages, says expert

Wed, 07 Jul 2010 11:57:12 GMT

Posted by James Curtis

Limited company contractors working in the UK could be among those interested in recent comments regarding the economy.

Charles Davis, managing economist at the centre for Economics and Business Research (CEBR), has warned that whilst the UK's economy is improving, the recovery is not yet "robust".

"If you look at the data the recovery is not robust yet, the recovery is in [play] but it is still at a relatively early stage and we still have got an unprecedented fiscal policy tightening coming almost immediately," he said.

The comments come ahead of the Bank of England's Monetary Policy Committee meeting later this week, which is set to decide if the Bank's interest rate is to be maintained.

Currently, the rate is being held at an historic low of 0.5 per cent, something which Mr Davis feels is unlikely to change.

"I think interest rates are going to stay on hold. There is a fairly strong case to keep monetary policy looser for longer as long as there is that fiscal policy focus," he added.

Olympic recruitment head to address REC members

Wed, 07 Jul 2010 11:56:40 GMT

Posted by Alex Turner

Contractors who are hoping to gain work off the back of London's hosting of the 2012 Olympic Games could be among those to be encouraged by a recent announcement.

Paul Modley, head of recruitment for the London Organising Committee for the Olympic and Paralympics Games (LOCOG), has been confirmed as a guest speaker at a forthcoming recruitment event.

The expert is set to address members of the Recruitment and Employment Confederation (REC) at the organisation's annual summer dinner on July 22nd.

Mr Modley is expected to speak to recruiters about the challenges of recruiting for large projects in order for them to cope with the Games, which are expected to require 100,000 contractors in order to be a success.

Dave Pye, REC Technology executive member, commented: "We are delighted Paul will be able to join us.

"London 2012 is a mammoth work programme and members will be able to benefit from hearing about challenges at this scale and how they can be overcome."

Temporary staff appointments continue to rise, report shows

Wed, 07 Jul 2010 10:01:17 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a number of UK industries could be among those to be encouraged by recent figures from the country's leading recruitment body.

The Recruitment and Employment Confederation's (REC) latest Report on Jobs has revealed that temporary staff appointments continued to rise last month.

However, despite the growth being described by the REC as "solid", it increased at the slowest rate for seven months.

The report also showed that job availability for temporary and contract workers increased at its sharpest rate for three months.

According to the report, temporary workers also benefitted from higher pay rates in June.

This was echoed by a recent publication from ITjobswatch.co.uk, which revealed that contractors working in various sectors of the IT industry have seen their daily pay rates increase by as much 275 per cent in the last 12 months.

Kevin Green, chief executive of the REC, said the figures were an "encouraging sign that the jobs market is stable and, in some sectors … rapidly growing".

Report shows pay increase for IT contractors

Tue, 06 Jul 2010 11:39:20 GMT

Posted by Alex Turner

IT contractors working as sole traders or limited companies in the UK could be among those to be encouraged by recent research showing that average daily rates have increased.

According the latest figures from ITjobswatch.co.uk. IT contractors have seen their earnings increase by up to 275 per cent over the last 12 months.

The reports showed that database architects saw the most improvement with 275 per cent growth, while contractors working in speech recognition and communications engineering in general saw pay rise by 266.66 and 248.83 per cent respectively.

Contractors working in IT strategy management were shown to be in the most lucrative section of the industry, with daily rates of £875.

Webmethods specialists and senior Java consultants also commanded top-end rates with daily earnings of £800.

However, the figures showed that developers were the IT contractors most in demand in the three months to July 2010, with 14,798 matching job adverts found in the last three months.

IT contractors working in finance (13,510), analysis (13,333), banking (11.652) and SQL (8,389) made up the top five.

Private sector missing an opportunity with flexible work, says Hays

Tue, 06 Jul 2010 11:38:16 GMT

Posted by James Curtis

The private sector could be missing an opportunity by not taking advantage of flexible working and hiring contractors and temporary workers.

This is the view of recruitment company Hays following the publication of its latest research.

According to a report in industry publication Recruiter, a recent study by Hays revealed that the main reason to use contractors given by private sector employers is to avoid increasing permanent headcount.

By way of contrast, public sector employers said they are motivated by access to specific skills held by contractors.

Charles Logan, director at Hays, told the news provider: "As we start to see signs of an improvement in the economy a flexible workforce will be essential in allowing businesses to grow, without the commitment of a permanent member of staff.

"The private sector could be missing the opportunity to use a flexible workforce as a key part of their plans, to take better advantage of the upturn and drive recovery."

Public sector employers may increase their use of contractors in the coming months after being asked by the government to show how they could shed 40 per cent of their spending.

UK economy continues to grow

Tue, 06 Jul 2010 11:36:58 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK could be among those to be encouraged by recent figures published by the British Chambers of Commerce (BCC).

According to the organisation's latest Economic Survey, the UK's economy continued to grow during the second quarter of the year.

The report also revealed that business conditions, such as export orders, investment plans and employment expectation improved between April and June.

However, the BCC has warned that despite the improvements, there are still weaknesses remaining in the economy.

David Frost, director-general of the organisation, said: "With very austere times ahead, no one should kid themselves into thinking that the UK’s economic recovery is totally secure. There will need to be an unwavering focus on ensuring business is able to deliver growth, create jobs and drive a lasting recovery.

"Interest rates will have to stay low for longer, burdensome new employment red tape must be blocked, and we will have to generate growth across all regions of the country."

The Bank of England is currently holding interest rates at a all-time low of 0.5 per cent.

Contractors reminded of legal obligations

Tue, 06 Jul 2010 10:08:46 GMT

Posted by James Curtis

Limited company contractors working in the UK have been reminded of their legal obligations with regard to company accounts.

A number of contractors may be encouraged to seek the services of a specialist accountant following comments made by Gary Cousins, a solicitor at Cousins Business Law.

Responding to a question of what limited company directors are legally required to do, Mr Cousins told Contractor UK that detailed accounting records must be maintained.

The expert explained that limited companies have a legal duty to explain company transactions and disclose their financial position when asked.

They must also keep records of balance sheets, money paid in and out and stock levels.

"It is also recommended that you keep records to enable you to create useful management information, profitability and cashflow forecasts, budgets and regular balance sheets so you can tell if you're still solvent," he added.

The expert recommended that bank statements, paying-in book receipts, ledgers and invoices to and from the company are kept up to date and stored safely.

Brookson managing director Martin Hesketh commented: "This is a timely reminder for contractors to ensure that they are meeting all their obligations as a director of their own limited company. Our customers have the reassurance that Brookson's service is set up to ensure they meet obligations and with 24-7 access to monthly management accounts we can provide them with the information they need to monitor the profitability and solvency of their limited company.

"Providing our customers are working via one of our banking partners, all their transactions and bank statements are captured and stored within our systems automatically. As well as management accounts, our customers also have access to other important information such as details of their assignments and invoices, which again are stored and available 24-7 through our Members' Area."

Recruiters to benefit from REC discussions

Mon, 05 Jul 2010 11:31:17 GMT

Posted by Alex Tuner

Contractors working as sole traders or limited companies in Plymouth could be among those to benefit from recruitment industry discussion set to take place in the area.

The Recruitment and Employment Confederation (REC) is set to hold the latest of its On the Road events later this week (July 8th) in a bid to discuss a number of issues facing the recruitment industry with its members.

Commenting on how recruiters will benefit, Kevin Green, REC chief executive, said: "There are many challenges facing the recruitment industry including the current situation regarding public sector resourcing and the Agency Workers Regulations which come into force next year.

"This is the perfect opportunity for our members to tell us what are their most pressing concerns and wherever possible, we will take on board their views in any of our future lobbying work and campaigns. No opinion put forward at these updates is ever overlooked."

Topics discussed at recent meetings included industry standards, the current licensing debate and how to counter negative perceptions of the industry.

PCG chief given leadership award

Mon, 05 Jul 2010 11:30:00 GMT

Posted by James Curtis

UK contractors concerned about the uncertain future of IR35 could be boosted after a group determined to shape its review was honoured at a recent awards ceremony.

The Professional Contractors Group (PCG) picked up two prizes and was shortlisted for another at the recent Trade Association Forum 2010 Best Practice Awards.

John Brazier, PCG managing director, picked up the Leadership Award while the organisation also scooped the Website of the Year prize and was recognised in the Membership Recruitment section.

PCG Chairman, Chris Bryce said: "John's leadership award is a huge feather in the cap of PCG, highlighting the significant strides forward that the organisation has made.

"John has led from the front to create an environment where the energy of the membership is harnessed, change is championed and staff are supported in their decisions and encouraged to make a difference."

Mr Brazier took charge of the PCG three years ago and has seen the organisation's membership increase by 16.5 per cent in that time.

Contractors warned to be careful what they wish for with IR35

Mon, 05 Jul 2010 09:51:31 GMT

Posted by Alex Turner

UK contractors who are longing to see the back of IR35 tax legislation should be careful what they wish for.

This is the view of information website Contractor Calculator, which said a replacement for the controversial rules could see contractors forced to pay more tax.

The website explained that the introduction of IR35 indirectly led to the emergence of the umbrella solutions provider sector.

According to the firm, as umbrella companies are "extremely efficient" collectors of tax and National Insurance contributions (NICs), the "overstretched HM Revenue & Customs" will urge the chancellor to keep them returning a "steady cashflow" to the Treasury.

"Taking a simplistic approach, a scenario where the chancellor requires all personal service companies, however they may be defined, to pay income tax and NICs on a percentage of fee income, to be determined but potentially quite high, is not beyond the bounds of possibility," the website said.

"This would require all contractors to pay more tax. Is that what we would wish for as an IR35 replacement?"

Tech expert to address recruiters

Fri, 02 Jul 2010 11:22:41 GMT

Posted by Alex Turner

Contractors working as limited companies or sole traders in the UK's technology sector could notice an improvement in the knowledge of recruitment firms after an event planned for later this month.

The Recruitment and Employment Confederation (REC) has confirmed that Paul Fryer, Field Enablement leader for IBM UK and Ireland, is to be the guest speaker at its forthcoming summer dinner.

Mr Fryer will address members of the REC's Technology Sector Group and discuss how recruitment firms can "inject intelligence" into their everyday interconnected systems.

Jeff Brooks, chair of REC Technology, commented: "Earlier this year, we published Technology 2020, which looks at where technology will be in ten years time and the implications it will have on consumers, businesses and recruiters.

"We are pleased that Paul Fryer will be speaking to members at our summer dinner as it will allow us to take the next step on this ten-year journey and give members food for thought to take away with them for the future."

Cutting red tape committee up and running

Fri, 02 Jul 2010 09:59:28 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK could be among those to be encouraged that a "tough" new committee charged with cutting red tape is up and running.

The new Reducing Regulation Committee, which is headed up by business secretary Vince Cable, met for the first time yesterday (July 1st) to discuss how to ease the administrative burden on the UK's businesses.

Commenting on what the committee hopes to achieve, Mr Cable said: "We need to change the balance of power away from the state and back to individuals, businesses and communities. For too long, there has been a misplaced notion that government's job is to regulate.

"We need businesses to drive the growth our economy needs, not be tied up with form filling, and the government is determined to do all it can to make that happen."

The committee's first meeting coincided with the launch of a new government campaign, entitled Your Freedom, which invited businesses and individuals to let the coalition know which laws and regulation they think should be abolished.

IT managers confident of rising budgets

Thu, 01 Jul 2010 11:39:43 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK's information technology (IT) sector could be among those to be interested in the results of a new survey.

Recently published figures from Numara Software, a leader in service management and asset management solutions, have revealed that UK businesses have seen their IT budgets affected by the recession more than some of their European neighbours.

According to the report, 42 per cent of UK IT managers said their budgets have been reduced as a result of the economic downturn, compared to 33 per cent in Germany and 28 per cent in France.

However, IT contractors could be boosted by the news that more than half (60 per cent) of respondents think IT investment will improve this year, with a further 29 per cent saying 2011 will see IT budgets increased.

The Confederation of British Industry recently published a forecast for the industry, in which it claimed IT investment will remain "broadly flat" this year.

OBR: 600,000 job losses by 2016

Thu, 01 Jul 2010 11:37:57 GMT

Posted by James Curtis

The Office for Budget Responsibility (OBR) has announced that it expects public sector spending reductions in the UK to result in more than 600,000 job losses by 2016.

This could come as good news to a number of sole traders and limited companies as public sector employers could increase their reliance on them in order to complete projects on time.

According to the OBR, an increase in the number of private sector jobs means employment will actually rise by more than one million.

However, the Chartered Institute of Personnel and Development (CIPD) has described the OBR's growth estimate as "optimistic".

Dr John Philpott, CIPD chief economic adviser, commented: "A favourable outcome depends on a return to health of the wider economy and increased demand for labour from the private sector.

"The conditions necessary for such a favourable outcome are at present far from self-evident and unlikely to emerge simply as a consequence of swifter and tougher action to reduce the deficit."

Will new sourcebook strengthen contractor-recruitment relationships?

Thu, 01 Jul 2010 11:37:22 GMT

Posted by Alex Turner

Contractors working as sole traders in a number of UK industries could be among those to benefit from the publication of a new research sourcebook.

To mark the fifth anniversary of the launch of its industry research unit, the Recruitment and Employment Confederation (REC) has published a summary of the information contained in the 50 reports the unit has produced since 2005.

According to the REC, the guide will help recruitment firms improve the relationships with their clients, win tenders and build "powerful" business plans.

This could come as good news to a number of UK contractors who are in regular contact with recruitment agencies.

Commenting on the launch of the publication, REC director of research Roger Tweedy said: "I think many recruiters will be surprised by the depth of knowledge that we now have and how this new resource can be used both to win business and to project a positive, professional image of the industry to the outside world.

"We have always had a focus on producing practical research that makes a real difference. The new sourcebook is a fantastic showcase for this research – and a great map that recruiters can use to navigate straight to the information they need."

Contractors need 'more than technical ability'

Wed, 30 Jun 2010 11:01:22 GMT

Posted by Alex Turner

IT contractors working as limited companies or sole traders in the UK need more than just technical ability if they are to succeed, it has been claimed.

Information website Contract Eye said additional skills needed by freelancers will come into play at time when contracts are up for negotiation.

"Your personality and sales ability will certainly influence the likelihood of negotiating successfully with your recruitment agency or end client," the firm explained.

"You need to appear professional, but firm when negotiating, but you should try not to appear overly keen and certainly not desperate," it added.

The advice comes as part of a new guide to negotiating published by the website, which said a contractor's ability to negotiate can be influenced by a number of factors.

According to the guide, the state of the market, the current demand for skills and experience levels can all play a role in negotiations.

Banking sector increases job numbers

Wed, 30 Jun 2010 10:55:59 GMT

Posted by James Curtis

The UK's banking sector has increased the number of jobs for financial advisers and planners, according to one recruitment expert.

This could come as good news to a number of sole traders and limited company contractors working within the country's financial services industry.

Mark Seymour, director of Hays Insurance and Financial Services, said there is now more work available and said professionals with a "proven track record" in finance are more likely to benefit.

"The insurance market has shown resilience to the recession with steady demand for experienced personnel over the last six months," he said.

"Recently we have seen opportunities increase for executives in the City and internationally."

The comments follow the publication of a report by the Confederation of British Industry, which revealed that the UK's financial services sector has grown at the fastest pace since September 2007 over the last three months.

However, according to the report, many firms in the sector believe activity levels are still "well below normal".

Demand returning for marketing professionals

Wed, 30 Jun 2010 09:47:31 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK's marketing sector could be among those to benefit from an increased demand for their skills.

According to a recently-published report by a marketing recruitment specialist, demand for marketing skills has returned over the last six months.

Emily King, senior account manager at marketingrecruitmentagency.com, which carried out the study, said the increase was encouraging, given the "slowdown" the industry suffered in 2009.

"We have certainly seen the demand for candidates with online marketing experience grow dramatically and this is one area where employers are looking to recruit," she added.

"It is clear that clients are looking to gain an online share and candidates with strong search engine optimisation, pay per click and e-marketing experience are highly sought after."

The report also showed that the average annual earnings for people in the marketing industry are now above GBP32,000 per year, with high-end earnings being around GBP75,000.

REC to discuss impact of AWR

Wed, 30 Jun 2010 09:47:03 GMT

Posted by James Curtis

Umbrella contractors working in the UK engineering and technical sectors could be among those to benefit from new discussion about the agency workers regulations (AWR).

The UK's leading recruitment body, the Recruitment and Employment Confederation, is to hold a briefing with its members and other recruitment organisations to discuss the impact the regulations will have on the sectors early next month.

Semta, the skills council for engineering and manufacturing, will also be in attendance to show recruiters how they can provide a "workforce for tomorrow".

Philip Higgins, Chair of the REC's dedicated engineering and technical group, said: "We always aim to address the key issues faced by our members at our briefings. This briefing will provide that, by focussing on both day to day business and the long term structure of the industry.

"From a range of topics members can gain food for thought and some practical steps and advice for their companies."

The EU-inspired AWR is due to be implemented on 1st October 2011.

Cloud services revenue set to grow

Tue, 29 Jun 2010 10:43:23 GMT

Posted by Alex Turner

Contractors working as limited companies or sole traders in the UK's IT sector could be among those to benefit from projected growth in the cloud services market.

According to business and technology research giant Gartner, revenue in the sector is set to reach $68.3 (£45.5 billion) billion worldwide this year.

This will represent an increase of 16.6 per cent on the $58.6 billion reported in 2009.

Gartner has predicted that the sector will benefit from continued strong growth until 2014, when revenue is expected to reach $148.8 billion.

Ben Pring, research vice-president at Gartner, said: "We are seeing an acceleration of adoption of cloud computing and cloud services among enterprises and an explosion of supply-side activity as technology providers manoeuvre to exploit the growing commercial opportunity.

"IT managers are thinking strategically about cloud service deployments; more-progressive enterprises are thinking through what their IT operations will look like in a world of increasing cloud service leverage."

Late payments getting worse, says FPB

Tue, 29 Jun 2010 10:42:41 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK could be among those suffering as the country's late payment trend is worsening.

According to a recent survey conducted by the Forum of Private Businesses (FPB), 18 per cent of respondents feel the problem of late payments from larger companies has become worse.

The report also revealed that 36 per cent of small enterprises' turnover is held up in late payment at any one time.

Leading IT firm Dell recently announced that it is to standardise its payment terns from 50 to 65 days due to the current economic conditions.

This has led the FPB to add Dell to its late payment Hall of Shame alongside a number of other large firms including Argos, United Biscuits and Carlsberg.

FPB spokesman Phil McCabe said: "Small businesses continue to suffer from the blight of late payment, which devastates cashflow and forces firms into administration.

"Companies like Dell have a responsibility to pay promptly – failure to do so can mean the whole supply chain seizes up. In the meantime we will continue to give small firms a voice by holding them to account publicly in our late payment Hall of Shame."

IT investment to remain 'broadly flat' in finance sector

Tue, 29 Jun 2010 09:39:05 GMT

Posted by James Curtis

Contractors who are working as sole traders or limited companies in the UK's IT industry could be among those to notice increased competition for jobs in the finance sector.

According to the latest report by the Confederation of British Industry (CBI), investment into IT among the UK's financial service providers is expected to remain "broadly flat" for the next 12 months.

The comments come despite activity in the finance sector growing in the last three months at its fastest rate since September 2007.

According to the CBI, the growth was "much lower than expected" and many firms believe activity levels are still "well below normal".

John Cridland, the organisation's deputy director-general, said: "The modest pick-up in activity in the financial services sector in the past three months fell short of expectations.

"But firms hope that activity will strengthen over the coming quarter and are now planning to expand their staff numbers."

One in every ten pounds 'to be spent online'

Tue, 29 Jun 2010 09:37:37 GMT

Posted by James Curtis

Contractors offering goods and services in a number of sectors could be among those inspired by a recent report to increase their online activity.

A recent Experian study, carried out for PayPal, has revealed that one in every ten pounds will be spent online by the end of 2012.

The report also revealed that online sales are set to grow by 36 per cent over the same period.

By way of contrast, off-line sales are set to increase by just one per cent.

Experian said the growth will see online double its market share over the next 18 months to £30 billion.

Carl Scheible, managing director of PayPal UK, said: "Online is booming even in the current economic uncertainty because people turn to the internet when they are trying to be thrifty.

"Two-thirds of online shoppers are now convinced their money goes further online compared to less than half who believed it last year, an increase of 8.5 million people."

UK MPs uninspiring, report finds

Mon, 28 Jun 2010 04:49:38 GMT

Posted by James Curtis

Contractors and other entrepreneurs working in the UK could be among those to find the country's leading politicians uninspiring.

According to a new report by technical recruitment agency CBSbutler, the engineering and technical sector is "decidedly uninspired" by the management styles of Nick Clegg, David Cameron and Gordon Brown.

When asked which of the MPs' leadership styles most reflect their own, 82 per cent of respondents said "none of them".

The prime minister and deputy prime minster received nine per cent of the votes each, while Mr Brown failed to receive a single vote.

David Leyshon, managing director of CBSbutler: "It is interesting that Nick Clegg and David Cameron came out with equal votes £ particularly as they are now in a collaborative form of leadership £ often the most beneficial in business.

"It's not easy to get disparate groups of people to work together at the best of times as the initial coalition talks between the various parties clearly demonstrated £ it will be interesting to repeat the poll a little further down the line when results can be more readily evaluated."

REC welcomes auto-enrolment considerations

Mon, 28 Jun 2010 11:53:37 GMT

Posted by Alex Turner

The government's recognition that "circumstances have changed" since pension auto-enrolment recommendations were first made in 2005 have been welcomed by the recruitment industry's leading body.

According to the Recruitment and Employment Confederation (REC), the organisation will now be able to argue its case for a more flexible approach to auto-enrolment.

It follows comments made by pensions minister Steve Webb, who stated that any system would have to "strike the right balance" between cost and benefits to individuals, employers and taxpayers.

Anne Fairweather, the REC's head of public policy, said that in its current form "the scheme would be of limited value to those completing a series of short-term assignments" such as umbrella contractors.

"We are calling for a common-sense approach and for the specific nature of agency work to be recognised and factored in," she added.

The REC said the "significant development" follows months of lobbying to highlight a number of issues that auto-enrolment will mean for temporary and contract workers.

Did minister's interview give contractors false hope over IR35?

Mon, 28 Jun 2010 11:52:27 GMT

Posted by Alex Turner

Contractors working in a wide range of UK industries may have been given false hope over the abolishment of IR35 tax legislation, it has been suggested.

It was recently thought that the controversial tax rule was set to be abolished after a Daily Telegraph interview with small business minister Mark Prisk suggested that the government's "comprehensive review" of business tax would look at making IR35 "redundant" and replacing it with something long lasting.

However, despite being published after the emergency Budget, contractor information website Contractor UK (CUK) has claimed the interview took place several weeks before the chancellor's speech.

According to CUK, this means the government's stance has not changed and the coalition has promised nothing more than a review of IR35.

HM Revenue & Customs told the website: "The review of IR35 is linked to the proposed wider review of small business [tax].

"Until the precise terms of reference are agreed, we cannot say much more."

IR35 is cumbersome and ill thought out, says PCG

Mon, 28 Jun 2010 09:55:36 GMT

Posted by James Curtis

The government should make sure that its review of the IR35 tax legislation is not rushed.

This is the view of the Professional Contractors Group (PCG) following the coalition's promise to look at the rules as part of a wider review of the UK's business tax system.

According to the PCG, the "cumbersome and ill thought out" tax rule has been a "blight on freelance workers" for more than ten years.

The group has long campaigned for the abolishment of IR35 and is calling on the coalition to deliver a workable alternative.

John Brazier, the organisation's managing director, said the tax rule has caused "great heartache" for many contractors and claimed the "cost in distress has been high, but the revenue for HM Revenue & Customs has been minimal".

Commenting on the review, Mr Brazier added: "We have done a lot of work on IR35 with independent experts and also taking in our members' experiences.

"Our view to everyone involved in this review is; don't rush it - just get it right."

IT directors not happy with services, report shows

Fri, 25 Jun 2010 12:04:40 GMT

Posted by Alex Turner

IT contractors working in the UK's technology services sector offering high standards could see demand for their services increase after a report revealed low satisfaction levels among IT directors.

According to a recent study by research firm Winmark, IT directors scored their third party service providers five out of ten when rating the performance of IT service providers they have worked with in the last three years.

The report also revealed a level of dissatisfaction with software development providers (5.1 out of ten) and software services management (5.9 out of ten).

Alex Wright, researcher at Winmark, said: "These figures are very worrying. In the services industry we would typically expect figures to be at about eight out of ten

"To be around, or even lower, than the five mark suggests that IT services providers have got a long way to go to deliver the value that IT directors are looking for."

Could contractors benefit from blogging?

Fri, 25 Jun 2010 12:04:11 GMT

Posted by James Curtis

Contractors could be among those inspired to add a blog feature to their websites following comments recently made by one expert.

Nick Baggott, founder of Navigate Consulting, a provider of CRM, data and digital marketing and training services, said there is "very much a clear role" for blogging as part of a wider business strategy.

"Blogging is about thought leadership and sharing opinions and a much more personalised view of things, whereas your site is about promoting your business and your services. A blog is good for reputation management as well," he commented.

"Blogs are dynamic and can be quickly and easily updated without the need for great expertise and this is of particular benefit to small businesses."

The expert urged bloggers to make sure their content is regularly updated in order to increase its value.

A recent report by EPiServer revealed that only 34 per cent of blogs are updated on a regular basis.

Tech firm to recruit via social media

Fri, 25 Jun 2010 12:03:41 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK's technology sector could be inspired to keep an eye on social media networks for job opportunies following a recent announcement.

Technology outsourcing and consultancy firm Accenture has unveiled new recruitment plans for the remainder of this year.

The firm is looking to recruit around 50,000 workers this year, with 40 per cent of the work being advertised on social media websites like Twitter and LinkedIn, Computer Weekly reported.

According to the company, the move will help it "fight the war for talent" in the technology sector.

Suzy Style, Accenture's head of recruitment, told the news provider: "Currently there is a war for talent and we believe an organisation's ability to develop long-term relationships with candidates will become part of their competitiveness.

"The recruitment industry has changed and our sourcing strategy has changed. Social media gives us the ability to build networks with people and find niche skills we might not normally see."

VAT hike to lead to job losses, says expert

Fri, 25 Jun 2010 09:48:39 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK could be set to see demand for their services increase following the announced VAT rise.

Chancellor George Osborne announced earlier this week that VAT will rise from 17.5 to 20 per cent from January 4th next year.

According to some experts, the increase will mean hundreds of thousands of jobs are lost over the next few years.

Human resources recruitment firm Ortus believes the increased VAT rate will see 201,000 jobs lost over the next eight years, Personnel Today reported.

This could see a number of businesses turn to contractors to make sure that projects are completed.

The Ortus estimate is based on Dutch research which showed that a one per cent rise in VAT led to 20,000 job losses in the country.

Ortus said if the same applied to the UK's 31 million-strong workforce, a one per cent rise would mean 80,815 job losses.

Tax organisation welcomes govt proposals

Thu, 24 Jun 2010 11:43:41 GMT

Posted by James Curtis

Government plans to improve the tax policy-making process in the UK have been welcomed by one tax organisation.

The Chartered Institute of Taxation (CIoT), which has been campaigning for tax law reform over recent months, said the publication of the coalition's Tax Policy Making: A New Approach paper is a "big step forwards".

This could encourage a number of contractors working as sole traders or limited companies in a wide range of UK industries.

Vincent Oratore, the organisation's president, said: "Our tax law process is deeply flawed. There is not enough expert scrutiny and there is insufficient parliamentary time to consider properly the effect that changes will have in practice.

"As a result we often end up with badly constructed laws, which give some taxpayers unintended opportunities to avoid tax while others face unintended losses."

The expert highlighted plans to create an independent Office of Tax Simplification as a "crucial" part of plans to make the UK's tax system "more transparent".

CIOT questions need for GAAR

Thu, 24 Jun 2010 11:42:49 GMT

Posted by James Curtis

The Chartered Institute of Taxation (CIoT) has questioned whether the introduction of a general anti-avoidance rule (GAAR) would add anything to the UK's tax system

It follows an announcement from the government that a GAAR will once again be looked at to see if it could form part of a "strengthened defence" on tax avoidance.

John Whiting, tax policy director at the CIoT, said the organisation is "happy" to examine the idea of a GAAR, but warned that some of the concerns that existed in 1999, when the idea was last mooted, are still around.

"To provide certainty, a clearance mechanism would be needed; to provide fairness, some of the existing clutter of anti-avoidance rules would have to be abolished," he said.

"Much has changed since a GAAR was last looked at: we have the successful disclosure regime; we have targeted anti-avoidance rules and we have the courts taking a much stronger line on avoidance."

The expert said given the success of the current system it could be questioned whether a GAAR is necessary.

Real momentum behind abolition of IR35, says expert

Thu, 24 Jun 2010 11:41:37 GMT

Posted by Alex Turner

The Professional Contractors Group (PCG) has claimed that its campaign to see IR35 tax legislation abolished is gathering "real momentum".

It follows comments made by small businesses minister Mark Prisk that the government is looking to make the rules "redundant".

In an interview with the Telegraph newspaper, Mr Prisk said: "We want to make sure whatever we change is a lasting settlement. One of the problems with IR35 is that it's a constantly changing set of rules."

Chris Bryce, chairman of PCG, said: "Today I am delighted to say there is now real momentum behind the abolition of IR35.

"We are delighted that Mark Prisk has said publicly what he has said to us privately. There is still much work to be done but we hope we can work with the government ? to find a fair and acceptable settlement for all freelancers and contractors."

The government has said it will look at IR35 as part of a "comprehensive review of small business taxation".

'Disastrous' pension changes hidden in Budget small print

Thu, 24 Jun 2010 09:54:57 GMT

Posted by James Curtis

Chancellor George Osborne's Budget contained a potentially "disastrous" measure which could affect a number of contractors, it has been claimed.

Contractor Financial, a dedicated mortgage, pensions and insurance adviser, has claimed that the government could cut the annual limit for contractor pension contributions.

According to the firm, hidden in the small print of HM Treasury's Budget document was a paragraph reading: "Provisional analysis suggested that an annual allowance in the region of ?30,000 to ?40,000 might deliver the necessary yield."

If this measure were to be introduced, contractors would see the limit for contributions cut from the current level of ?255,000 per year.

"This could have disastrous implications for the many contractors who currently use pension investment as a way of minimising tax liabilities," the firm said.

"If the annual limit is reduced from its current level of ?255,000 to just ?30,000 then this will severely restrict the ability to tax efficiently transfer funds from contract and into personal hands."

Govt sets out plans to clamp down on tax avoidance

Wed, 23 Jun 2010 10:17:46 GMT

Posted by Alex Turner

The new coalition government has set out its plans to clamp down on tax avoidance in the UK.

In a statement released yesterday (June 22nd) HM Treasury said that it is "committed to making every effort to tackle tax avoidance".

"The government will take a more strategic approach to the risk of avoidance to prevent increasing complexity and reduce the need for frequent legislative change," the department said.

"In this context, the government is tackling long-standing avoidance risks in a way that makes it clear what result the legislation intends to achieve. The government will continue to shut down avoidance schemes as they emerge."

One of the plans put forward by the government is the creation of a General Anti-Avoidance Rule.

HM Treasury said it will discuss if a general rule should form a part of its "strengthened defences".

Further plans to clamp down on tax avoidance on stamp duty, inheritance tax and life insurance policies were also announced by the government.

Mixed bag for contractors in emergency Budget

Wed, 23 Jun 2010 10:17:11 GMT

Posted by James Curtis

UK contractors were dealt a mixed bag by yesterday's emergency Budget, it has been suggested.

Information website Contractor Calculator said certain announcements will please the UK's contracting community, while others will be less welcome.

The website said the confirmation of a review of the IR35 tax legislation is good news.

However, it claimed that while contractors on lower and middle incomes will benefit from a rise in personal tax allowance, those on higher earnings will pay more tax.

Chancellor George Osborne confirmed that the personal allowance will rise by ?1,000 to ?7,475 from the start of the next tax year.

Mr Osborne also announced, as was widely expected, that VAT will rise from 17.5 to 20 per cent from January 4th next year.

Contractor Calculator said: "Although VAT-registered contractors won't feel the impact of the rate rise on their business costs, consumer goods will become more expensive and that could potentially have a negative impact on the economy as a whole.

"Those categories already VAT exempt such as food, books and children's clothes, will remain so. However, most contractors are likely to be hit by the cost of business and domestic insurance VAT rates rising from five to six per cent."

FSB welcomes tax moves

Wed, 23 Jun 2010 09:19:52 GMT

Posted by Alex Turner

Contractors working in a number of UK industries could be among those to have benefitted from new tax measures introduced by the government.

The Federation of Small Businesses (FSB) has welcomed a number of the changes unveiled by chancellor George Osborne in yesterday's (June 22nd) emergency Budget.

Among the changes to be welcomed by the organisation was a ?1,000 increase in the personal tax allowance, taking the total to ?7,475 from next April, and the reduction in small companies corporation tax.

However, the FSB said that the decision to increase VAT from 17.5 to 20 per cent in January will be met with disapproval by many small enterprises.

John Walker, national chairman of the federation, commented: "The measures announced in the emergency Budget will go a long way to reducing the deficit and will please the 93 per cent of FSB members who called for a clear plan on tackling the country's debt."

He added: "The increase in VAT to 20 per cent will however, hurt small firms who will have to pass the increase on to their customers, unlike big business which can absorb the cost."

PCG: Budget sees fairer time ahead for UK freelancers

Wed, 23 Jun 2010 09:19:19 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK could be among those to have benefitted from an "intelligent" Budget, according to one industry organisation.

The Professional Contractors Group (PCG) has said that it is delighted that the chancellor used yesterday's (June 22nd) announcement to declare Britain "open for business" and said contractors can look ahead to "fairer times".

Commenting on the new coalition's first Budget, John Brazier, PCG managing director, said: "George Osborne delivered an intelligent and decisive Budget which has tried to tackle the massive deficit this country faces.

"He stated he wanted to create certainty and stability and we believe that many of his measures will do this. The roadmap for corporation tax and the laying out of income tax changes over the course of the Parliament are welcome and will help PCG members in their businesses."

Anne Redston, a visiting professor of taxation at King's College London, told the PCG that freelancers had emerged "relatively unscathed" from the Budget and pointed to the promise of a small business review and the creation of the Office of Tax Simplification as particular highlights.

MPS extends ICT outsourcing contract

Tue, 22 Jun 2010 11:36:39 GMT

Posted by Alex Turner

Contractors in the UK who have provided services for leading information and communications technology (ICT) firm Capgemini could be among those to benefit from a recent contract extension.

The company announced yesterday (June 21st) that its contract to supply the Metropolitan Police Service (MPS) with ICT services has been extended by three years.

Under the terms of the deal, the MPS will rely on Capgemini and its subcontractors BT and Unisys for all its ICT requirements until 2015.

The deal is expected to generate around ?43 million worth of savings in assisting the 55,000 police officers, staff and community support officers working for the MPS.

Dean Grant, vice president and MPS client director of Capgemini, said: "I am naturally delighted that our work with one of the world's finest and largest police forces has been recognised and rewarded, following rigorous benchmarking, by the award of this important three-year extension.

"I am confident that further success lies ahead on the road to 2015 as we pursue our policy of continuous improvement and no-standing-still with energy and determination."

Chancellor urged to protect 'delicate' jobs market

Tue, 22 Jun 2010 11:36:00 GMT

Posted by James Curtis

Chancellor of the exchequer George Osborne has been urged to protect the UK's "delicate" jobs market when announcing the emergency Budget later today (June 22nd).

The Recruitment and Employment Confederation (REC) has called on the coalition government to protect the "fragile" labour market by making job creation a priority and limiting the impact on public sector employment opportunities.

Commenting ahead of the Budget, REC director of external affairs Tom Hadley said: "The stakes are high for the UK's already delicate jobs market.

"In the short-term, expenditure cuts will not only impact on employment in the public sector but will also affect all those supplying services into public bodies. The government will need to deliver cost-effective guidance and support for job-seekers ? for example, by harnessing the expertise of professional recruiters and employers."

Mr Osborne is expected to announce a wide range of spending cuts as well as increases to taxes when the Budget is announced at 12:30

IT pros resist World Cup temptation

Tue, 22 Jun 2010 09:54:38 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK's IT sector could be among those demonstrating a certain resolve during the World Cup.

A recently-published report from leading recruitment firm the IT Job Board has revealed that just 14 per cent of IT workers have scheduled time off to coincide with England's matches during the tournament.

Almost two-thirds (62 per cent) of IT professionals said they will not be tempted to watch England's matches during working hours.

Alex Farrell, managing director of the IT Job Board, said: "It would be fair to say that a large number of commentators have suggested that - so far - the first round of the World Cup has failed to live up to expectations.

"It's positive to see that businesses have put measures in place, such as flexible working. But the results lead us to believe that absenteeism simply won't pose a problem."

England's final group game takes place against Slovenia tomorrow (June 23rd) at 14:30.

Report shows increase in financial services hiring

Mon, 21 Jun 2010 09:53:35 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK's financial services sector could be encouraged by recent hiring levels revealed in a new report.

The latest London Employment Monitor by recruitment firm Morgan McKinley has shown that new job vacancies in the capital increased by three per cent in May.

According to the firm, the increase meant that May saw the second highest volume of new jobs since September 2008.

Andrew Evans, managing director of Morgan McKinley's financial services division, commented: "Overall, the market is improving with some ups and downs along the way, which is always going to be the case as recovery continues.

"May 2010 city hiring activity shows a gradual upward trajectory despite the distractions of a change in government and the continuing eurozone issues in that month."

The study also showed average pay for financial services workers increased by nine per cent between April and May this year.

HMRC ends seven-day 'grace' concession

Fri, 18 Jun 2010 02:27:28 GMT

Posted by James Curtis

Contractors working in the UK have been given an added reason to make sure their tax returns are filed on time after HM Revenue & Customs (HMRC) announced that it is axing its late filing concession.

Introduced in 1995, Extra Statutory Concession (ESC) B46 meant that HMRC would not issue penalties for late filing of company tax returns for employers and contractors if they were received by the last working day within seven days of the filing date.

However, the department has now announced that ESC B46 will come to an end on March 31st next year.

From that date onwards, returns must be filed no later than the specified date using HMRC online filing facilities.

The department explained that in order for late penalties to be removed, special request will have to be made.

"Any customers filing a return late will, as now, be able to request us to remove any penalty, if they believe they had a reasonable excuse for the delay in filing. We will consider every case on its own merits," it said.

IT jobs on the rise

Fri, 18 Jun 2010 02:25:30 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK's IT sector could be among those to be encouraged by an increase in job postings.

The latest Employment Index report from recruitment firm Monster has revealed an 11 per cent increase in online job availability between April and May.

IT, along with transport and logistics, education and training, legal and administrative was one of the best performing sectors across the month.

Julian Acquari, managing director at Monster UK and Ireland, commented: "The job market has shown gradual upward progression in 2010, despite recent turbulence in the European financial markets.

"Business investment improved in the first quarter of this year and we can see increased levels of online job availability compared to this time last year; another positive trend is the growth in human resources positions year-on-year."

The report showed that online postings for jobs in the education sector increased by 13 per cent month-on month, while the legal sector saw an increase of 12 per cent over the same period.

Contractor pensions tax relief looks under threat, says expert

Thu, 17 Jun 2010 02:03:05 GMT

Posted by James Curtis

Tax relief on contractor pensions could be under threat, according to one financial expert.

Tony Harris, of independent financial advisors ContractorMoney, which specialises in contractor mortgage and pension advice, said that it is looking "increasingly likely" that next week's emergency Budget will contain further restrictions on higher rate tax relief.

Writing for information website Contractor UK, Mr Harris explained that HM Revenue & Customs has already introduced two separate restrictions on what had been an "almost unlimited scope" for contractors to invest, after pensions simplification led to billions of pounds worth of lost revenue.

"It seems increasingly likely that some form of further restriction on higher rate tax relief will come into force in the emergency Budget on June 22nd," the expert said.

"This grim prospect for individuals earning more than £100,000 is made all the more likely by suggestions in the Lib Dem manifesto that relief for such wealthy investors should be axed outright."

50,000 public sector jobs to go by next spring, says CIPD

Thu, 17 Jun 2010 12:33:34 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies that rely on work in the UK's public sector could be among those affected by a jobs cull.

According to the Chartered Institute of Personnel and Development (CIPD), spending cuts announced by the new coalition government mean that around 50,000 public sector roles will be lost by next spring.

The comments follow the publication of the latest labour market report from the Office for National Statistics, which revealed that employment increased by 12,000 in the private sector between February and April this year, while the number of people working in the public sector dipped by 7,000 during the same period.

Dr John Philpott, the CIPD's chief economic adviser, said: "Signs of recovery in the private sector jobs market … are welcome but beg the question whether the private sector will be able to fill the jobs gap once the process of public sector downsizing gets fully underway.

"Next week's emergency Budget will contain measures that will lead to a subsequent mass cull of public sector jobs. In the absence of a strong private sector jobs recovery, the cull will lift headline unemployment toward three million by 2012.

Enterprises urged to plan ahead

Thu, 17 Jun 2010 10:01:50 GMT

Posted by James Curtis

Limited company contractors could be among those urged to plan ahead in order to cope with any changes announced in next week's Budget following the comments of one financial expert.

Edward Rimmer, UK chief executive of Bibby Financial Services, has said that the enterprises most likely to survive and cope with changes to VAT, funding options and tax breaks are those that are prepared.

The comments come as chancellor George Osborne prepares to deliver the new coalition government's first emergency Budget at 12:30 on June 22nd.

According to Mr Rimmer, the chancellor is likely to announce a number of changes that could affect contractors and other enterprises who rely on the public sector for work.

"Taking steps to improve cash flow can reap considerable benefits during these unpredictable times and businesses should not wait to see the content of the emergency Budget to address these issues," he explained.

"Firms should be identifying where cash is tied up now to spot potential 'bottlenecks' and act to reduce their impact."

IR35 review expected 'in due course'

Wed, 16 Jun 2010 02:59:23 GMT

Posted by James Curtis

Contractors operating in the UK could be among those to expect an announcement about IR35 in next week's emergency Budget after the Treasury admitted that details will be revealed "in due course".

Shortly after the election the new coalition government said that IR35 would be looked at as part of a "wholesale" review of the UK's tax system.

Chancellor George Osborne commented at the time that the tax legislation resembled a spider web due to the vast amount of regulations added under the Labour administration.

Conservative MP Tony Baldy has now pressed the chancellor for more details on the promised review of the controversial tax law and when it is to be completed..

In response, the Treasury's David Gauke simply said: "The government intend to review IR35 as part of a wholesale review of small business taxation. Further details will be announced in due course."

The emergency Budget, the first under the new government, will be delivered on June 22nd.

REC: Confidence returning to jobs market

Wed, 16 Jun 2010 12:18:39 GMT

Posted by Alex Turner

UK contractors working as limited companies or sole traders could be among those to be encouraged by a return to confidence among employers.

According to the latest Jobs Outlook report by the Recruitment and Employment Confederation (REC), one in three employers are now looking to grow their workforce in the long term.

This represents one of the highest levels recorded by the report in the last 12 months.

The study follows the publication of figures from the Office for National Statistics, which revealed that 50,000 more temporary and contract workers were employed in the first quarter of 2010 compared with the previous year.

Roger Tweedy, the REC's director of research, commented: "There are increasingly positive signs of a gradual upturn in employers' hiring intentions, probably linked to greater post-election stability and a feeling that a Conservative government is likely to be best for future job creation.

"Recruiters should also take heart from the fact that greater fluidity seems to be returning to the jobs market with recent survey data from Gfk NOP suggesting that up to six million workers are now planning to move jobs."

LITRG voices concern over HMRC enquiry centre cuts

Wed, 16 Jun 2010 10:05:11 GMT

Posted by James Curtis

Contractors working in the UK as sole traders or limited companies could be encouraged to seek the services of a specialist accountant as HM Revenue & Customs (HMRC) is planning to cut the opening hours at its enquiry centres.

A recently-published report by the Low Income Tax Reform Group (LITRG) revealed that HMRC is planning to reduce the opening times at 117 of its 280 enquiry centres.

This comes after the department already made a series of cuts at 58 branches, leaving some only open for one or two days of the week.

The moves are leading taxpayers to face "the slow death of the enquiry centre", according to the LITRG.

Robin Williamson, the organisation's technical director, said: "HMRC seem to believe that the reduction in footfall at enquiry centres is the consequence of a decline in demand for face to face services.

"However our response, supported by voluntary sector experience, shows the converse - that demand for face to face services remains high, but the inaccessibility and frequently poor quality of the service now provided by enquiry centres has caused that demand to flow instead to the voluntary sector."

Report reveals 'slump' in financial recruitment

Wed, 16 Jun 2010 09:58:48 GMT

Posted by Alex Turner

Contractors working as limited companies or sole traders in the UK's financial services sector could be among those to notice increased competition for jobs over the coming months.

A recently-published report by pre-employment screening firm Powerchex has revealed that recruitment activity in the sector declined by 12 per cent last month.

The fall comes after a continuous seven-month period of growth in financial service recruitment activity in the UK.

According to Alexandra Kelly, one of the firm's directors, the figures could signal the start of a "period of conservatism" among financial services sector employers.

"With the UK economy going through a period of almost unprecedented volatility, turbulent financial markets, the weakening euro and political change are all making the financial services understandably nervous about recruitment at pre-recession levels," she explained.

"However, if you look at the recruitment levels of 12 months ago, you can see that we have made considerable progress."

Government must provide continuity, says FSB

Tue, 15 Jun 2010 03:12:05 GMT

Posted by James Curtis

Contractors working as limited companies in the UK could be among those to be encouraged by new calls for governmental continuity.

The Forum of Private Businesses (FPB) has outlined what it believes should be the government's "key priorities" ahead of next week's emergency Budget.

According to the organisation, the new coalition should focus on providing "continuity of government" for small enterprises in the UK.

The forum has also called on the government to improve market conditions, reduce the country's deficit and strengthen "traditional sectors".

It follows an announcement from the coalition's new Office for Budget Responsibility, which revised the growth forecast for 2011 from 3.25 per cent to 2.6 per cent.

Matt Goodman, the FPB's head of policy, said: "These are more realistic projections of growth which reflect feedback from our member businesses and the general mood of the economy at the moment.

"The government has a difficult task in this emergency Budget. While addressing the gaping public deficit in order to stabilise the economy must be the first priority this must be balanced with continued support for the drivers of growth – small businesses."

Pay increases for UK IT workers

Tue, 15 Jun 2010 12:43:21 GMT

Posted by Alex Turner

Contractors working as limited companies or sole traders within the UK's IT sector could be among those to have noticed an increase in their earnings.

According to recently-published statistics from recruitment firm CVScreen, people working in the IT industry saw their earnings increase by two per cent between 2009 and 2010.

The report showed that software development managers, programme managers and IT directors were the highest earners, with takings of between £55,286 and £95,000.

After studying almost 7,500 online IT job posts, the firm found that the average annual pay for people working in IT stood at £36,818 at the beginning of this year.

The report also revealed that IT positions involving PHP development, SharePoint and .Net were on the rise.

By way of comparison, demand for IT workers with experience of PC support, VB development, SAP, Lotus and DB2 declined.

However, the latest Ashdown Group Jobs Index showed that the number of computing and technology jobs advertised online last month increased by almost three per cent when compared with April.

CIPD: Unemployment to hit three million

Tue, 15 Jun 2010 10:24:57 GMT

Posted by James Curtis

Sole traders and limited company contractors working in the UK could be among those to be affected by a forthcoming rise in unemployment.

The Chartered Institute of Personnel and Development (CIPD) has said that the new government's plans to reduce the UK's deficit will "stall any recovery" in the country's jobs market.

According to the organisation, unemployment will peak at three million later this year.

Speaking at a recent presentation, Dr John Philpott, the CIPD's chief economic adviser, said: "Although tough fiscal medicine is unavoidable and may boost the UK's long-run economic growth and job prospects, reliance on cuts in public spending rather than tax increases as the primary means of cutting the deficit makes the short-term outlook especially bleak for those individuals and communities already suffering the greatest hardship in society."

The expert also said that it is now likely that the government will announce an 80:20 split between public sector cuts and tax hikes, rather than the 60:40 that the organisation originally predicted.

This will mean that sole traders and other workers in the public sector will contend with job losses of around 725,000, he added.

Should contractors look to rent office space?

Tue, 15 Jun 2010 09:56:33 GMT

Posted by Alex Turner

Contractors in the UK could see their business boosted by renting office space and taking their operations out of their homes, it has been suggested.

Writing for Freelance Folder, professional writer Laura Spencer said office space could help a number of contractors whose work levels make it hard for them to operate at home.

The writer said freelancers who have frequent face-to-face meetings with clients or regularly work with subcontractors could benefit from the extra space.

She said those who can afford the extra expense will benefit from a working environment that is quieter and offers fewer distractions.

While Ms Spencer said that contractors working in large cities may find office space expensive, there are "bargains" to be had on the outskirts of many areas.

"There are some real office space bargains located just minutes outside of many metropolitan areas," she said.

"Often, you can lower your costs even more by sharing the office space and professional staff, such as a receptionist or administrative assistant, with other local professionals."

Compliance contractors 'could benefit from hedge fund regulation'

Mon, 14 Jun 2010 03:26:47 GMT

Posted by Alex Turner

Limited company contractors working in the area of compliance could find their skills in high demand thanks to proposed hedge fund regulations.

Michelle Myers, head of compliance within the financial services division at Twenty Recruitment, said increased scrutiny for regulatory bodies and investors will mean that hedge funds need increasingly high standards of risk management.

She predicted a "flurry" of recruitment activity in this area if the regulations are put into law, as companies root out the most talented professionals.

Ms Myers said that compliance teams are today seen as "trusted advisors" and "gatekeepers" for financial firms.

She claimed that since it is still unclear how the legislation will take shape, hedge funds will not be in a "tearing hurry" to take on permanent employees.

"Consequently the contractor and interim market is likely to take up the slack in the medium term and so this could be a huge growth area," she remarked.

European governments backed strict new regulations for hedge funds last month, despite opposition from the UK chancellor George Osborne.

Demand for IT staff increasing

Mon, 14 Jun 2010 03:03:34 GMT

Posted by Alex Turner

Limited company IT contractors may welcome a new report which shows that demand for IT staff is continuing to rise.

According to the Recruitment and Employment Confederation (REC), labour demand in the sector has risen by four per cent in the last quarter.

Demand for IT skills has increased by ten per cent during the period.

Employers are having more difficulty recruiting in some areas than in others, the report revealed.

For example, skilled workers have found to be lacking in areas such as systems development, .NET and SQL SVR.

Contractors with experience in these areas may find that their skills are in greater demand.

Jeff Brooks, chair of REC Technology, said: "IT systems are clearly seen as tools that can help drive growth and help reduce cost across the enterprise and we expect to see this growth maintained."

Earlier this month, the REC's Report on Jobs showed that the availability of short-term workers continued to rise in May, while permanent staff availability fell for the first time in more than two years.

Staff turnover rates affected by recession

Mon, 14 Jun 2010 02:37:33 GMT

Posted by Jim Ottewill

Contractors seeking work with limited companies may be interested to hear that the recession has affected staff turnover rates at organisations across the UK.

According to the latest report from XpertHR, more than half of employers in the country believe the economic downturn has had an impact on voluntary resignation rates, Personnel Today reported.

Last year, the average national voluntary resignation rate was 8.6 per cent, down from ten per cent in 2008, with almost two-thirds of companies reporting a fall.

Rates were lowest in the manufacturing and production sector, with just six per cent of employees leaving their employer voluntarily.

Employers in London experienced the highest level of staff turnover. The median resignation rate in the capital was 29 per cent.

The Chartered Institute of Personnel and Development put the average UK-wide staff turnover rate for 2009 higher at 15.7 per cent.

It said that levels varied from region to region, with those areas where unemployment is lowest seeing the highest rates, as it is "unproblematic for people to secure desirable alternative employment" in these parts of the country.

Chancellor urged to avoid 'damaging' tax hikes

Thu, 10 Jun 2010 10:01:03 GMT

Posted by Alex Turner

Calls for a focus on spending cuts over tax rises may be welcomed by contractors working as sole traders or within limited companies in the UK.

The Confederation of British Industry (CBI) has urged chancellor George Osborne to avoid introducing "damaging" tax hikes in his emergency Budget.

Deputy director general John Cridland said the nation's deficit must be brought under control rapidly.

However, he said this must be done in such a way that does not put economic growth at risk.

"This needs to be a bold and ambitious Budget, with a credible pathway for restoring sound public finances and a convincing narrative for growth," Mr Cridland remarked.

He called for a "radical re-engineering" of public services in order to avoid tax hikes for businesses and individuals.

Mr Osborne is due to unveil his emergency Budget on June 22nd.

He is also facing calls from the Chartered Institute of Taxation to review the way that tax laws are made in the UK.

Demand is high for skilled workers, says report

Wed, 09 Jun 2010 03:09:58 GMT

Posted by James Curtis

UK contractors operating in a number of industries could be among those to be encouraged by a recent jobs market report.

The latest Report on Jobs by the Recruitment and Employment Confederation (REC) has revealed that accountants, human resources professionals, software developers and chefs are in "high demand" with professional recruiters.

According to the study, temporary staff billings increased at a "strong rate" in May.

The REC said that recruitment consultancies reported that the growth of vacancies was "strong" although it was slightly slower than in the previous month.

Kevin Green, the organisation's chief executive, said: "With fewer opportunities in the public sector and jobs growth in the private sector improving only very slowly, predictions of a jobless recovery are looking more likely."

Mr Green said the demand for workers in a number of industries was encouraging but expressed caution about the future.

"We remain concerned about the overall employment outlook as public sector recruitment freezes start to bite," he added.

Government announces Spending Review details

Wed, 09 Jun 2010 12:35:24 GMT

Posted by James Curtis

The government has announced details of how the next Spending Review (SR) will be conducted.

A number of contractors who regularly work with public sector employers could be interested in the SR spending limits for every government department.

The next SR is due to conclude in autumn this year and will outline spending plans for the period 2011-12 to 2014-15.

Chancellor of the exchequer George Osborne and chief secretary to the Treasury Danny Alexander have said that the new SR will include a requirement for departments to submit their plans before the summer recess and demonstrate that they meet a "tough new criteria" to deliver value for money.

Mr Osborne said: "This is the great national challenge of our generation: after years of waste, debt and irresponsibility, to get Britain to live within its means. It is a time to rethink how government spends our money.

"We didn't choose the terrible economic situation we inherited. But we can work to put it right, to deal with our debts, to set our country on a brighter economic course, and show that we are all in this together."

Contracting group launches new resource tool

Wed, 09 Jun 2010 11:18:58 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK could be set to see an increased demand for their services following the launch of a new guide.

The Professional Contractors Group (PCG) has published a new "pre-flight" checklist for companies to use when starting a new project that will require the use of freelance contract services.

"It has been produced as part of PCG's 'Britain's Brain Gain' campaign, spotlighting the rich talent pool amongst the UK's 1.4 million freelance workers and highlighting their £82 billion contribution to the UK's economic output," the PCG explained.

The 12-point checklist is one of a series of resources being offered by the organisation which are designed to "maximise the benefit of the flexible working model".

Earlier this week the PCG announced that its annual national Freelancers Day event will carry a "freeing up potential" theme and will be used to highlight the lifestyle options available to contractors and the contribution they make to the UK economy.

Social networks 'more popular than search engines'

Wed, 09 Jun 2010 10:04:42 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in a wide range of UK industries could be encouraged to market their products and services through social media networks following the results of a new study.

According to research specialist Experian Hitwise, social networks are now more popular than search engines.

Figures from the Hitwise Intelligence report revealed that social networks accounted for 11.88 per cent of all UK internet visits last month.

By way of comparison, search engines accounted for 11.33 per cent.

This is the first time the report has shown social media to be more popular than search-based websites.

The report revealed that Facebook is the most popular social network, with three times as many visitors as YouTube. Twitter is the third most popular followed by former favourites Bebo and MySpace.

Robin Goad, research director at Hitwise UK, said: "Google UK was the most visited website in the UK during May, accounting for 9.29 per cent of all visits. Facebook, in second place, accounted for 7.04 per cent of all UK internet visits during the same month."

Will contractors gain from new instant advice service?

Tue, 08 Jun 2010 04:58:12 GMT

Posted by James Curtis

Contractors working as limited companies or sole traders in a wide range of sectors could be set to benefit from improvements in the recruitment industry.

The Recruitment and Employment Confederation (REC), the UK's leading recruitment body, has launched a new service aimed at giving instant advice and guidance to recruitment firms.

'Ask the Expert' will run online from 12:00 to 15:00 on June 11th and will see the REC's business mentor team answer any recruitment-related questions firms may have.

The REC said the service has been set up to help recruiters who feel they are "lacking inspiration about how to best drive [their] businesses forward".

"This service is free to REC and IRP members so get yourself and your business on track again with some friendly, helpful guidance from a recruitment expert," the organisation said.

According to the REC, the service will help recruiters whose sales techniques have "come to a juddering halt" get their businesses back on track

REC launches new 'Hire Power' guide

Tue, 08 Jun 2010 02:03:37 GMT

Posted by Alex Turner

Contractors working in a number of UK industries could be among those to benefit from the launch of a new guide.

The Recruitment and Employment Confederation's (REC) Industry Research Unit has published a practical guide called 'Hire Power', which is intended to assist public sector hiring managers in making "informed recruitment choices".

Kevin Green, the REC's chief executive, said: "With the continuing uncertainty and fragility of the jobs market, it is important public sector employers are given the most comprehensive and practical guidance to help them reach some crucial decisions within their organisations.

"Hire Power is a big step forward in helping both recruiters and employers take a measured look at how best to bring about the changes in the way they go forward during such a repressive financial climate."

The guide has been launched to coincide with today's (June 8th) REC summit, which the organisation hopes will enable recruiters to forge "dynamic relationships" with both private and public sector employers.

PCG announces theme for National Freelancers Day

Tue, 08 Jun 2010 12:15:46 GMT

Posted by Alex Tuner

The Professional Contractors Group (PCG) has announced that this year's National Freelancers Day, the organisation's annual event, will focus on "freeing up potential".

It follows on from last year's event, which had a "future of work" theme, and is scheduled to take place on November 23rd.

This year's event is intended to highlight the lifestyle choice that freelancing can offer as well as showing how contractors can make a "growing contribution" to the UK's economy.

John Brazier, managing director of the PCG, said: "More and more people see freelancing as their ideal 21st century work choice. They see the potential of freelancing as a positive and rewarding choice for their work while enhancing their lifestyle.

"We reached out to the freelance community throughout the UK and the attendance at regional events underlined the growing confidence and pride freelancers have in their role in society."

Mr Brazier added that National Freelancing Day is fast becoming a "significant date" for many contractors.

CIOT calls for tax law reform

Tue, 08 Jun 2010 09:53:29 GMT

Posted by James Curtis

Contractors working in the UK as sole traders or limited companies could be among those to be encouraged by new calls for tax law reform.

The Chartered Institute of Taxation (CIOT) has called on the government to change the way that tax laws are made in the country.

According to the organisation, the new coalition should follow the model used in the US, which it claimed provides more scrutiny over tax legislation.

The CIOT said the UK would benefit from the creation of a Joint Committee on Taxation, similar to that which is in operation in the US.

Vincent Oratore, the organisation's president, said: "The way tax law is made in the UK is deeply flawed. There is not enough expert scrutiny and there is insufficient parliamentary time to consider properly the effect that changes will have in practice.

"I believe we can learn something from the Americans, who have a well resourced Joint Committee on Taxation which enables members of both Houses of Congress to play a meaningful and constructive role in the making of tax law."

Banks launch new online support package

Mon, 07 Jun 2010 04:36:04 GMT

Posted by James Curtis

Contractors working in the UK could be among those to benefit from a new business support package.

NatWest and the Royal Bank of Scotland (RBS) have launched a new online "one stop shop" for support and advice aimed at helping enterprises "trade their way out of recession".

The launch follows a recent NatWest and RBS survey, which showed that 33 per cent of respondents are looking at business growth as a priority as the UK recovers from the economic downturn.

Commenting on the initiative, David Frost, director-general of the British Chambers of Commerce (BCC), said: "I have been really impressed with the new support NatWest and RBS are offering.

"It is one of the most comprehensive and practical tools I have seen for a long time. At the BCC we recognise the need for small businesses to better equip themselves for a changing economic environment and anything that supports them in considering their options is a good thing."

Interest rate will not change, says expert

Mon, 07 Jun 2010 03:58:27 GMT

Posted by Alex Tuner

Contractors who are concerned about how a rise in interest rates would affect their operations can put off their worries until next year.

That is the view of Michael Baxter, editor of e-mail magazine Investment and Business News, who said the Bank of England will maintain its interest rate at 0.5 per cent when it makes an announcement next week.

The comments follow the publication of a report by insolvency trade body R3, which revealed that a number of enterprises fear a rise to anything above two per cent would leave them likely to face insolvency.

However, Mr Baxter said the Bank is unlikely to change the rate next week or at any point in 2010.

He said: "I don't think it's going to change. It will stay as it is.

"I doubt there would be any forces emerging in the Bank that would manifest itself in the form of pushing for a [higher] rate of interest for a while. For now the majority of movers within the Bank will stick with low interest rates for quite a long time yet – certainly until the end of this year."

Recruitment firms honoured at awards bash

Mon, 07 Jun 2010 11:43:36 GMT

Posted by Alex Turner

Contractors using recruitment firms to find placements could be encouraged to seek the help of a handful of companies honoured at a recent awards ceremony.

The first ever Recruitment Consultant magazine Industry Awards were held last week and several firms operating under Recruitment and Employment Confederation (REC) membership were among the prize winners.

Ocean Edge, a specialist in housing and care recruitment, picked up the Best Small Recruiter award, while Candelisa People was highly commended for its work in the same category.

The Best Large Recruitment Company award went to SkyBlue, with Encore Personnel Services earning the highly commended citation.

WH Marks Sattin, Office Angels and A La Carte Search were also among the evening's winners.

Alison Henderson, the REC's press manager, commented: "Once again, our members have shown they are blazing a trail in the recruitment industry through continuously striving and achieving excellence in all their endeavours.

"Our congratulations go to all seven businesses that were honoured at the awards and we hope this will spur them to either enter or nominate their staff for our IRP awards in October."

Summit is 'critical' for recruiters, says REC

Mon, 07 Jun 2010 10:08:50 GMT

Posted by James Curtis

The Recruitment and Employment Confederation (REC) is staging its public sector summit tomorrow (June 8th) and the organisation has described the day as the most critical in 30 years for recruiters.

Contractors working as sole traders or limited companies could also stand to benefit as recruitment firms are to be given instructions on how to build productive relationships with public sector groups in the wake of new budget restrictions.

Kevin Green, the REC's chief executive, said: "The chancellor's announcement on £6.2 billion of public expenditure cuts a fortnight ago acted as a catalyst in our view that the whole focus should be on long-term sustainable reform rather than short-term slash and burn cuts.

"Nobody in recruitment working with the public sector can afford to miss this summit because of the opportunities it provides for building dynamic and productive partnerships which will help shape the future of how both private and public sectors can work together."

David Frost, director-general of the British Chambers of Commerce and Dean Shoesmith, president of the Public Sector People Managers' Association are among the confirmed speakers at the event.

Interest rate speculation sparks insolvency fears

Fri, 04 Jun 2010 01:37:28 GMT

Posted by James Curtis

Contractors operating as limited companies could be among those to be concerned about plans to increase interest rates to 3.5 per cent.

According to insolvency trade body R3, seven per cent of the UK's small enterprises feel that if the interest rate was to rise to between two and 3.5 per cent they would be likely to become insolvent.

This number increased to 12 per cent if the rate increased to between 3.5 and four per cent and 18 per cent for a rate of between four and five per cent.

The Bank of England is currently holding the interest rate at an all-time low of 0.5 per cent.

Steven Law, R3 president, said: "For businesses that are repaying bank loans and rely on consumer spend, an increase in interest rates would be a double blow.

"Pressure will be keenly felt among highly geared businesses and an increase in the cost of finance either for working capital or to fund expansion are factors than can lead to insolvency."

Job postings on the rise

Fri, 04 Jun 2010 01:04:11 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in a number of UK industries could be among those to be encouraged by the rising number of online job postings.

According to the latest report by the Ashdown Group, online postings for jobs in IT, marketing, accountancy and human resources all increased in April.

The Ashdown Group Job Index tracks the number of positions advertised on its websites and other leading jobs boards.

According to the figures, human resources saw the largest growth with 10.06 per cent more placements than in the previous month.

Marketing (6.89 per cent), accountancy (4.07 per cent) and IT (2.97 per cent) also showed signs of improvement.
John Lynes, director of the Ashdown Group, said: "The private sector appears to be performing well with much hiring activity and decent annual reports among many of the FTSE listed companies.

"The job market is strong now but the future is very uncertain. I don't believe we will see a true picture until the end of the summer."

'Attack' on red tape backed by FSB

Fri, 04 Jun 2010 10:24:56 GMT

Posted by James Curtis

Limited company contractors working in the UK could be among those who have been "stifled" by business regulation.

The Federation of Small Businesses (FSB), which represents small enterprises in the UK, has said people have been suffering under the weight of red tape for too long.

It follows an announcement from business secretary Vince Cable that the new government has an "action plan" to rid the country of "excessive" legislation.

The plans include creating a Reducing Regulation Committee, adopting a one-in, one-out policy for legislation and reviewing impending regulations that are left over from the Labour administration.

Mike Cherry, the FSB's policy chairman, said: "Regulation has long been stifling business growth so these plans to put an end to the excessive legislation … are welcome news.

"Small enterprises have repeatedly said that the burden of regulation and the time it takes to comply with it is just too much and could prevent them from taking on staff - and stunts economic growth."

Figures recently published by the British Chambers of Commerce showed that the cost of complying with regulation has increased by £11 billion over the past year.

Unemployment set to rise

Thu, 03 Jun 2010 04:20:58 GMT

Posted by Alex Turner

Contractors working in the UK could be among those to be affected by further rises in unemployment in the coming months.

According to the British Chambers of Commerce (BCC), the unemployment rate is set to rise from 2.51 million to 2.65 million in the first quarter of next year.

This will represent 8.4 per cent of the country's entire workforce, the organisation said.

The BCC has also revised its GDP growth estimate for 2011 from 2.1 per cent to two per cent.

According to the organisation, GDP growth is expected to be slower as obstacles to a "sustained medium-term recovery are now greater".

The report also predicted that VAT will rise to 20 per cent in the next 18 months with an increase to 18.5 per cent likely in April next year.

David Frost, director general of the BCC, said: "The UK economy is now recovering. But, the improvement is fragile, businesses large and small are still facing considerable pressures and there are significant risks posed by the current crisis in the eurozone.

"The coalition must avoid new business taxes and measures that might damage enterprise and entrepreneurship."

Contractors to benefit from government discussions

Thu, 03 Jun 2010 12:12:09 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK who are regularly required to obtain Criminal Records Bureau (CRB) checks for placements could be among those to be encouraged by new discussions.

The UK's leading recruitment body, the Recruitment and Employment Confederation (REC) has met with senior officials from the new coalition to discuss issues with CRB checks and the new Vetting and Barring Scheme.

REC members have been told that the organisation will alert them with any changes made to the scheme, which is currently under review before its July implementation.

Commenting on potential changes to the scheme, Anne Fairweather, the REC's head of public policy, said: "We are pressing home the point that the repeat CRB checking of temporary workers just leads to bureaucracy for agencies and expense to workers.

"We are fighting for the re-introduction of the portability service, which the CRB used to run, to improve this situation."

Cable announces action plan to reduce red tape

Thu, 03 Jun 2010 10:04:16 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK could be among those to benefit from the launch of an action plan to reduce business legislation in the country.

Business secretary Vince Cable has unveiled details of how the government intends to rid the UK of "excessive legislation".

Included in the new plans is the creation of a new cabinet "star chamber", which will see a Reducing Regulation Committee enforce a new approach to laws and regulations.

Contractors who are having difficulties complying with the numerous employment regulations currently operating in the UK could benefit from the new Specialist Company Secretarial Services recently launched by Brookson.

Commenting on the action plan, Mr Cable said: "The deluge of new regulations has been choking off enterprise for too long. We must move away from the view that the only way to solve problems is to regulate.

"This is a real challenge and it will not be easy. We need to reduce regulation and at the same time meet our social and environmental ambitions."

Business critical areas remain 'crucial' says expert

Wed, 02 Jun 2010 04:46:43 GMT

Posted by Alex Turner

Business critical areas in the public sector such as finance remain "crucial" in terms of recruitment and retention, it has been claimed.

This could come as good news to contractors working as sole traders or limited companies in the UK's finance sectors.

The latest annual market report from financial recruitment specialists Advantage Professional has highlighted a need for robust financial reporting in the wake of public sector spending cuts.

It follows the Treasury's announcement that public spending is to be slashed by £6.25 billion.

Lee Dempster, Advantage Professional's operations director, said: "While managing redundancies and downsizing is seen as the top challenge in the coming year, the need for robust accounting and financial reporting has never been more important.

"This translates into a critical requirement to attract and retain key skills. Having worked hard in recent years to attract talent from the private sector for the necessary commercial approach, it would be unfortunate to lose it again."

According to the report, the "slow road to economic recovery" will coincide with an increased demand for workers with financial, strategic management, project management and systems skills.

Action needed to ensure growth of financial sector, says expert

Wed, 02 Jun 2010 02:42:15 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK's financial services sector could be among those to be encouraged by recent comments from the country's leading recruitment body.

The Recruitment and Employment Confederation (REC) has stated that action is needed to ensure the future growth of the sector.

According to the organisation, financial services in the UK have come under increased pressure in recent times.

In a bid to help recruiters overcome challenges to the sector, the REC's Accounting and Financial Services Sector Group has organised a discussion meeting later this month.

The event, which is to be held on June 9th, will allow REC members to discuss the challenges facing the industry such as future skills requirements.

Steve Bellamy, a spokesperson for REC Accounting and Financial Services, said: "Our industry has seen its reputation come under pressure over the last two years and this has created a negative impression on possible new recruits to the industry.

"We need to act now to ensure future growth of this vital sector of the UK economy."

Contractors to do more with less

Wed, 02 Jun 2010 11:42:15 GMT

Posted by James Curtis

UK contractors working within the IT sector could be expected to do more with less this year as businesses keep tight control over their budgets.

New research from ReThink Recruitment has revealed that the majority of IT directors expect workloads to increase in 2010, while budgets are expected to remain stable or be reduced.

According to the study, 66 per cent of IT directors believe that workloads are set to rise for the remainder of this year.

However, 48 per cent have "major concerns" about delivering the IT projects in those workloads within the specified budget.

This could lead to a number of contractors seeing their earnings limited or expected to do more for less.

Michael Bennett, ReThink's director, said: "For many IT departments this will be the second consecutive year in which budgets have not kept pace with workload demands.

"Concern is growing among IT directors that budgets simply won't be able to cope with workload demands, as projects which were shelved during the recession are revived."

REC is 'dominant force' in IT recruitment

Wed, 02 Jun 2010 09:49:02 GMT

Posted by James Curtis

IT contractors working as sole traders or limited companies in the UK could be set to benefit from a more unified approach to recruitment in the country.

New figures released by the Recruitment and Employment Confederation (REC) have revealed that its membership base for its technology sector group grew from 160 to 406 last year.

According to the organisation, the group is now the "dominant force" in IT and telecoms recruitment within the UK.

Jeff Brooks, chair of REC Technology, said: "2009 was a difficult year for our sector members and we are not out of the woods yet. 2010 brings with it unique challenges including a new government to engage with, public sector cuts and the changing procurement landscape.

"We will continue to listen to our members, deliver opportunities and advice that makes a positive difference and be the main voice within our sector."

Dave Pye, chief executive officer of the JM Group, one of the REC's newest members, said the organisation provides "excellent" research and informative meetings to deliver a "strong presence" within the sector.

Firms could turn to contractors as staff set to leave

Tue, 01 Jun 2010 03:44:30 GMT

Posted by Alex Turner

Contractors working in a wide range of industries could be set to see an increased demand for their services.

A recently-released report by market research specialist GfK NOP has revealed that around 25 per cent of employees plan to leave their company within the next year.

This could leave a number of businesses looking to sole traders and limited companies to replace highly-skilled workers.

According to the report, employees who have been "battening down the hatches" during the tough economic climate are now looking to move on amid pay and recruitment freezes.

Figures from the study showed that 13 per cent of employees are looking to leave their firms immediately, while a further 11 per cent expect to leave within 12 months.

Sukhi Ghataore, employee engagement specialist at GfK NOP, said: "It's clear that the measures put in place to counteract the recession are hitting morale, with this being most evident in the public sector.

"It's completely understandable why organisations have put these steps in place but in order to come out stronger they need to examine the impact this is having on productivity and ultimately profitability."

Increasing interest rate could be 'catastrophic'

Tue, 01 Jun 2010 12:17:06 GMT

Posted by Alex Turner

Contractors working in the UK could be among those interested in the recent comments of one expert with regard to the country's economy.

Michael Baxter, editor of online magazine Investment and Business News, has claimed that an increase in interest rates to 3.5 per cent could have "catastrophic" consequences for the UK's economy.

The comments follow the publication of a report from the Organisation for Economic Cooperation and Development (OECD), which implored the Bank of England to increase its interest rate by the end of 2011.

Currently, the Bank's rate is at an all time low of 0.5 per cent.

Mr Baxter commented: "I thought the OECD report was a bit funny; it was almost contradictory.

"Apparently we had a crisis earlier this month, which could have been as serious as the Lehman Brothers going bust. This goes to prove the economy globally is still very vulnerable. Yet the OECD is recommending the rate of interest goes up over the next 18 months."

IoG director to speak at recruitment conference

Tue, 01 Jun 2010 10:20:25 GMT

Dr David Halpern, director of research at the Institute of Government (IoG), is to be the opening speaker at a forthcoming recruitment conference.

The Recruitment and Employment Confederation (REC) has confirmed that the expert will deliver a speech at its Public Sector Summit at London's Congress Centre next week.

A number of UK contractors could stand to benefit from the event and the REC said it will enable recruiters to build "dynamic, productive partnerships" with human resources practitioners and public sector employers.

Dr Halpern is expected to outline the government's proposed budget deficit programme at the start of the summit.

Commenting on the expert's involvement, Kevin Green, REC chief executive, said: "Nobody is probably better placed currently to give a totally up to the minute assessment on the new government's thinking on how best to tackle one of the biggest financial challenges the UK has ever faced.

"The profile of the summit has continued to gather momentum with the appearances of the highest possible calibre of speakers, all of whom are committed to ensuring there is a greater understanding of the roles that both the private and public sectors need to play at an extremely crucial time both politically and economically."

Other speakers at the event include the Conservative Party's efficiency adviser Sir Peter Gershon, Jackie Orme, chief executive of the Chartered Institute of Personnel and Development and David Frost, director general of the British Chambers of Commerce.

Future unclear about IR35

Tue, 01 Jun 2010 09:21:11 GMT

Posted by James Curtis

The future of the controversial IR35 tax legislation is currently unclear, according to one contractor news provider.

A recently-released report by ContractorCalculator has revealed that HM Revenue & Customs (HMRC) has updated its Employment Status Manual.

According to the website, this could potentially "widen the net" to catch an increased number of contractors within IR35.

The comments follow the new coalition government's pledge to review the tax legislation and replace it with "simpler" measures as part of a "wholesale" review of small business taxation in the UK.

As such the contractors should be "careful what they wish for", said Dave Chaplin, chief executive officer of ContractorCalculator.

"What we should all be wary of is what new 'simpler measures' might be. After all, they are likely to form a new definition of who should be taxed as an employee and who should pay tax as a genuine contractor working through their own limited company," he said.

"Clearly, the 'simpler measures' need to be fair; after all, that's what anti-IR35 campaigners have been battling for."

Contractors 'provide firms with flexible working models'

Fri, 28 May 2010 05:02:00 GMT

Posted by Alex Turner

Contractors and other temporary workers can help provide businesses with a flexible means of working.

This is the view of the Association of Recruitment Consultancies (ARC), which has voiced its concerns that EU guidelines depict agency work in a negative light.

According to the organisation, Guideline 7 of the EU Strategy for smart sustainable growth suggests a correlation with temporary agency work and "precarious" employment.

"The use of language that associates agency work with 'precarious employment' or with 'vulnerable workers' - a common term used by the unions and the last government - serve only to create a negative image of agency work," the group said.

A statement from the association confirmed its support for proposals from the European Confederation of Private Employment Agencies that the guidelines be re-drafted.

It said this will help make the "valuable contribution that temporary agency work will make towards economic recovery in the UK" more recognisable.

ID card scrap confirmed

Fri, 28 May 2010 02:23:14 GMT

Posted by James Curtis

Contractors working in the UK's IT industry could be among those to be affected by a recent announcement by the Home Office.

Following the Treasury's announcement that £6.25 billion worth of spending cuts are to be made, the Home Office has confirmed that government plans to introduce identity cards and a national Identity Register have been scrapped.

Had the project gone ahead, it could have meant a boost in placements for IT contractors working as sole traders or limited companies.

The scrappage comes after the Treasury confirmed that as part of the £6.25 billion savings plan the government will reduce the amount it spends on IT projects by £95 million.

Deputy prime minister Nick Clegg said: "The wasteful, bureaucratic and intrusive ID card scheme represents everything that has been wrong with government in recent years.

"By taking swift action to scrap it, we are making it clear that this government won't sacrifice people's liberty for the sake of ministers' pet projects."

Government warned over communication cuts

Fri, 28 May 2010 12:15:22 GMT

Posted by Alex Turner

The new coalition government has been warned about the knock-on effects of reducing its funding for communications services.

It follows the Treasury's announcement that £1.5 billion will be cut in consultancy costs including communications services.

According to the Recruitment and Employment Confederation (REC), during tough economic times a "interactive and open" relationship between the government and the public is "more essential than ever".

In a move that could benefit contractors working as sole traders or limited companies in the media and marketing sectors, the REC has called on the coalition to invest in communications now to save money in the long term.

Konstantinos Makrygiannis, policy advisor at the REC's marketing, media and creative sector group, said: "In an era of fragmented communications, the government should invest in modern means of communication to make sure that the right messages reach the widest possible audience.

"This will be achieved more efficiently through specialist professionals than through the civil service."

Government should realise that 'red tape isn't needed'

Fri, 28 May 2010 11:18:55 GMT

Posted by James Curtis

Contractors operating as limited companies in the UK could be among those encouraged by a recent call regarding business red tape in the country.

Professor Joshua Bamfield, director of the Centre for Retail Research, said the only way for the government to reduce red tape is for it to realise that "it just isn't needed".

Prof Bamfield's comments follow the publication of a report by the British Chambers of Commerce, which revealed that the cost to businesses of complying with red tape has increased to £88.3 billion.

This represents an increase of £11 billion on last year's figure.

The expert said concentrating too much on legislation could be dangerous for a number of small enterprises.

"When you are small it is vital to direct efforts towards driving a company forward - it is easy to fall into the dangers of all this regulation," he said.

"Most businesses would say to you, let's compile the 300 most inconvenient modes of red tape and get rid of them – then replace them with something simpler."

PCG: Queen's Speech confirms good news for contractors

Thu, 27 May 2010 04:13:10 GMT

Posted by Alex Turner

The Queen's Speech, which was delivered earlier this week, has "confirmed positive news" for the UK's contractors.

This is the view of the Professional Contractors Group (PCG), which welcomed plans to make the country's tax system simpler and fairer.

John Brazier, the organisation's managing director, said the plans will be a relief to many contractors who have "struggled" under the IR35 legislation.

"In particular we warmly welcome the government's stated commitment to establish an 'Office of Tax Simplification'.

"Once IR35 is placed under the scrutiny of such a body, it will be exposed for the iniquitous and overly complex block on enterprise it really is."

The expert also stated that simplifying the tax system and reducing "regulatory burdens" on the UK's 1.4 million freelancers will help the country's economic recovery.

Further announcements on the UK's tax regime are expected to be announced when chancellor George Osborne delivers his first Budget on June 22nd.

Enterprises in 'limbo' until June

Thu, 27 May 2010 02:50:42 GMT

Posted by Alex Turner

Limited company contractors and other small enterprises will be in "limbo" until the emergency Budget is revealed despite measures being outlined in the Queen's Speech.

This is the view of the Forum of Private Businesses (FPB), which said the UK's future, with regard to taxation, will not be settled until the Budget is revealed.

Chancellor of the exchequer George Osborne is scheduled to deliver the first emergency Budget of the new coalition government's regime on June 22nd.

Jane Bennet, head of campaigns at the FPB, said: "The speech didn't appear to contain anything smaller businesses should be unduly concerned about.

"However, business owners will be in something of a state of limbo until June 22nd, when the chancellor will hopefully outline fully detailed taxation and spending policies in his Budget."

Ms Bennet also commented that the measures outlined in the Queen's Speech, such as changes to National Insurance, will "hopefully" contribute to rebuilding the UK's finances without jeopardising economic recovery.

Umbrella firms should be 'squeaky clean'

Thu, 27 May 2010 01:11:32 GMT

Posted by James Curtis

Contractors working with umbrella companies should ensure that the firms are "squeaky clean".

This is the view of Bob Jones, a former HM Revenue & Customs (HMRC) inspector, who said the department is increasingly becoming active in the umbrella market.

The expert told freelance news source Shout 99 that in the last few years, advice given by frontline umbrella staff has not been "entirely accurate".

"When HMRC come to call they will be looking at the correct operation of the expense rules. In particular they will pay close attention to workplace assessment to ensure that permanent/temporary workplaces are correctly identified," he explained.

"This means that front line staff must obtain accurate information and give the correct advice to the contractor."

The comments come as Mr Jones launched a training course for umbrella staff and management teams, which is intended to help firms offer accurate information to contractors on a range of tax and employment issues.

Job competition will 'remain tough'

Thu, 27 May 2010 10:05:41 GMT

Posted by James Curtis

Contractors working across a wide range of UK industries could be among those to find competition for places remaining tough despite an increase in hiring.

Lisette Howlett, managing director and founder of recruitment agency information source HireScores.com, said that although UK businesses are set to increase their recruitment activity, employers will be "quite selective".

The comments follow the publication of a report by the Confederation of British Industry, which revealed that the number of companies implementing recruitment freezes now stands at just five per cent.

This represents a fall from 37 per cent six months ago and more than 60 per cent one year ago.

Ms Howlett commented: "Many of these firms will not have taken on new staff for some time.

"As things start to ease in the economy more people will also be looking to move on and this creates a knock-on effect. It is likely that employers will be quite selective with who they hire which will make competition for jobs remain tough."

Consultancy market set to grow, says report

Wed, 26 May 2010 04:19:41 GMT

Posted by Alex Turner

Contractors working as consultants could be among those set to see an increased demand for their services this year.

This is the view of Plunkett Research, which said after a "miserable" 2009, corporate clients are ready to spend again.

According to the firm's latest market research and competitive analysis report, many organisations had turned to internal consulting in a bid to cut costs as a result of the tough economic conditions.

Jack Plunkett, chief executive officer of Plunkett Research, said: "New IT projects and consulting assignments that focus on cost control and operating efficiencies will be in favour.

"Also, globalisation of the consulting industry will expand, with a strong focus by consultancies on assisting multinational clients."

The comments could come as good news to a number of IT contractors that are set to see their public sector placements reduce after the government announced it is to cut spending on IT projects by £95 million.

Report shows lack of support for employment regulations

Wed, 26 May 2010 03:50:42 GMT

Posted by James Curtis

A number of UK employers believe that certain regulations are a hindrance to businesses.

According to a recently-published report by the Chartered Institute of Personnel and Development (CIPD), 32 per cent of employers believe the Agency Workers Regulations, which are due to come into effect on October 1st 2011, will hinder their operations.

The study also showed that only 28 per cent of employers have faith in the Working Time Regulations.

Mike Emmott, employee relations adviser at the CIPD, said: "Employers are … yet to be convinced about the merits of the Agency Workers Directive and the Working Time Directive.

"The CIPD believes that the Working Time Regulations in particular have negligible value in limiting unhealthy workplace behaviour. We are, therefore, calling for its repeal in the context of the review currently being undertaken by the European Commission."

According to the survey, there was support for some regulations among employers, with 45 per cent of respondents backing the Disability Discrimination Act, 42 per cent the Age Discrimination Regulations and 42 per cent the Data Protection Act.

CIPD: Is this the right time for cuts?

Wed, 26 May 2010 12:12:38 GMT

Posted by Alex Turner

The £6.25 billion worth of public sector spending cuts announced by the Treasury earlier this week could have come at the wrong time.

This is the view of the Chartered Institute of Personnel and Development (CIPD), which said the measures could lead to a reduction of 50,000 public sector jobs in this financial year.

According to the CIPD, the government has made the right decisions in reducing spending on quangos, IT, consultancy, advertising and property.

However, Dr John Philpott, the organisation's chief economic adviser, has questioned the timing of the cuts.

"While the scalpel has been applied with considerable skill, one must nonetheless question whether now is the right time to begin major surgery on the UK's fiscal deficit," he said.

"There will be knock-on effects into the private sector on businesses that undertake contract work for the central and local government and other public bodies … given the current weak state of the labour market this is likely to have a detrimental impact on unemployment."

Government warned over IT cuts

Wed, 26 May 2010 10:06:53 GMT

Posted by James Curtis

Contractors working within the UK's IT sector could be among those to be encouraged by the recent comments of the country's leading recruitment body.

Following the Treasury's announcement of how £6.25 billion worth of spending cuts will be made, the Recruitment and Employment Confederation (REC) has warned the government of the impact "indiscriminate" cuts on IT projects could have.

Among the casualties of the Treasury's cuts were the civil service, which will undergo a recruitment freeze in order to save £120 million, and local government, which has had its funding reduced by £1.2 billion.

The government has also outlined plans to reduce the amount of money spent on IT by £95 million.

Jeff Brooks, chair of REC Technology, said: "We would advise the new government not to sever critical IT investment projects indiscriminately.

"IT can help the government and public services to function more efficiently but if we start randomly dropping IT projects now, that could act to add costs rather than eliminate them in the long run."

The expert also urged IT professionals to contact IT recruiters if they are concerned that the cuts will affect their workloads.

Slight decline in online recruitment

Tue, 25 May 2010 05:37:12 GMT

Posted by Alex Turner

Contractors operating in the UK could be among those to be affected by a slight decline in online recruitment.

The latest index report from Monster has revealed that the activity on its website declined by four per cent in April.

However, despite the overall drop, a number of sectors, including research and development (R&D), healthcare and social work, reported an increase in recruitment activity.

According to the report, R&D recruitment increased by four per cent, while online recruitment for banking, finance and insurance fell by two per cent.

Julian Acquari, managing director at Monster UK and Ireland, said: "The state of economic recovery in the United Kingdom remains fragile.

"However, conditions are not uniform across the country and across sectors. Unemployment actually fell in London more than in any other region during the three months up to February, and we are seeing online recruitment in London trend relatively favourably."

Recruitment in education and training suffered the biggest decline, with a fall of 11 per cent, according to the index.

Tough times ahead for healthcare recruitment, says expert

Tue, 25 May 2010 03:06:07 GMT

Posted by James Curtis

Contractors working in the UK's healthcare sector could be among those to notice increased competition among recruitment agencies.

According to Tracy Ward, director at Medic International, a number of firms have moved into healthcare from finance and IT, which has led to more competition in the sector.

In an interview with industry publication Recruiter, the expert said firms can gain knowledge in other sectors and the "basics of recruitment are the same".

However, Ms Ward warned that as the healthcare sector is subject to a wide range of regulations, people should ensure that an agency has the relevant knowledge before looking for placements.

"There are agencies that have moved into the sector but whether they have got the database available to manage this is uncertain," she told the news provider.

"Clients should be concerned over whether agencies know the compliances that are required in order to place an NHS doctor, as it is a very legislated industry. The main concern would be new agencies not understanding these stringent processes."

The Department of Health was one of few public sector sections not to be affected by yesterday's (May 24th) spending cuts, which were announced by the Treasury.

REC: Cuts will increase need for flexible staff

Tue, 25 May 2010 12:08:29 GMT

Posted by Alex Turner

The long-term effect of public sector spending cuts will be a greater need for flexible staffing, according to the Recruitment and Employment Confederation (REC).

This could come as good news to a number of sole traders and limited companies operating in UK industries.

REC director of external affairs Tom Hadley said there could be real benefits for the public sector in adopting flexible working systems.

The comments come after the Treasury announced £6.2 billion worth of spending cuts including an £863 million reduction in the business department's funding.

Mr Hadley commented: "There will be huge changes in the way that public services are delivered. In the mid and longer term, these will require a greater need for flexible staffing rather than less.

"The reality is that there are real benefits in being able to 'flex' staffing requirements to meet peaks in demand and avoid undue pressure on the permanent workforce."

Cuts are painful but necessary, says CBI

Tue, 25 May 2010 11:15:14 GMT

Posted by James Curtis

Contactors working in the UK who have been affected by the wide ranging public sector spending cuts have been told the measures are "painful but necessary".

The comments come after the Treasury announced £6.2 billion worth of cuts including an £863 million reduction in the business department's budget.

According to the Confederation of British Industry (CBI), the cuts, which include a £780 million reduction in the Department for Communities and Local Government's funds, are needed to tackle the country's deficit.

Richard Lambert, the organisation's director-general, said: "The measures announced by the chancellor, including departmental spending cuts and a civil service recruitment freeze, are painful but necessary steps to demonstrate the UK's seriousness about tackling the deficit.

"Just as private sector firms had to take strong action to cut costs during the recession, so too must the public sector."

The £6.2 billion worth of cuts was £243 million more than experts had predicted and contractors could also soon face further financial changes when the Budget is announced on June 22nd.

Global IT spend set to rise, report shows

Mon, 24 May 2010 05:12:46 GMT

Posted by Alex Turner

Contractors working as limited companies or sole traders in the IT sector could be set to see an increased demand for their services.

A recently-published report by technology research giant Gartner revealed that worldwide enterprise IT spending in 2010 is set to increase by 4.1 per cent compared to last year.

According to Gartner, this will see the global IT spend surpass $2.4 trillion (£1.7 trillion).

Kenneth Brant, research director at Gartner, said: "2010 will see IT spending in all major industries returning to growth, although that growth will vary by individual sector.

"Among the two largest industry segments, IT spending in the banking and securities market will rebound to $396.9 billion in 2010 … whereas IT spending will recover more slowly in manufacturing and natural resources."

The Gartner report showed that IT spending in banking and securities as well as communications media services will top $390 billion each with respective growth of 4.6 and 4.4 per cent.

However, the healthcare sector is expected to increase its IT investment by just 2.8 per cent, with a total spend of almost £89 billion being forecast.

Government warned off 'knee-jerk' public sector cuts

Mon, 24 May 2010 02:53:27 GMT

Posted by James Curtis

Contractors who rely on the public sector for some of their work placements could be among those to be encouraged by recent calls from the UK's leading recruitment body.

The Recruitment and Employment Confederation (REC) has called on the new government to implement long-term sustainable reform, rather than make "knee-jerk", short-term cuts.

It comes as chancellor George Osborne prepares to announce how £6 billion of cuts in public sector spending will be made.

The chancellor is scheduled to outline details of the spending cuts later today (May 24th).

Kevin Green, chief executive of the REC, has called on Mr Osborne to recognise the vital role that temporary and contract workers can play in delivering public sector services.

"In relation to recruitment freezes, at a time when the public sector is going to need ever increasing talent and leadership to transform service provision, limiting the ability of public sector organisations to recruit the talent and capability they need to transform themselves will be self-defeating," he said.

BCC: Cut red tape for businesses

Mon, 24 May 2010 11:59:17 GMT

Posted by Alex Turner

Contractors operating in a number of British industries could be among those to benefit from new calls to reduce business legislation in the UK.

The British Chambers of Commerce (BCC) has called on the new coalition government to cut the amount of red tape that UK enterprises face.

According to the organisation, the high level of legislation has cost UK businesses £88.3 billion since 1998.

This represents an increase of £11 billion since last year, according to the BCC's latest Burdens Barometer.

David Frost, BCC director general, said: "The cost of dealing and complying with new laws and regulations over the last 12 years has been far too high.

"During this critical time for the economy, we need businesses to be driving recovery and creating jobs. But, the government must play its part by putting the brakes on the relentless flow of red tape."

Mr Frost added that today's (May 24th) Queen's speech is the "perfect opportunity" for the government to demonstrate its commitment to a better business environment.

More people turning to entrepreneurship

Mon, 24 May 2010 10:25:47 GMT

Posted by James Curtis

More people are deciding to start their own businesses in the post-recession climate, according to new figures.

Steve Cooper, managing director of Barclays Business, said that the bank helped 10,000 people start their own enterprise in April.

This was the highest number that the bank has helped in a single month.

Mr Cooper said he was surprised at how resilient the smaller outfits have been in the current economic climate and said there have been fewer business failures than the bank would have expected.

"We have seen more people who have lost their jobs decide to change their lives by starting up their own business to do their own thing," he explained.

The comments follow the launch of the bank's Barclays Trading Places awards, which have been created to recognise the achievements of people who have succeeded in business against the odds.

"What we are trying to do is recognise and celebrate individuals who have managed to overcome personal challenges to establish a business and livelihood for themselves and families around them," he added.

New partnership to benefit PR contractors

Fri, 21 May 2010 12:36:01 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the marketing and public relations (PR) sector could be among those to benefit from a new partnership between two leading trade bodies.

The professional Contractors Group (PCG) has teamed up with the Public Relations Consultants Association (PRCA) to create a new PR freelancers network.

According to the partnership, members of the network will benefit from expert advice and a range of other benefits including legal help lines, market intelligence and business and lifestyle services.

Francis Ingham, PRCA director general, commented: "Freelancers are a vital, but often neglected part of the PR industry. They support peaks in activity, are experts in their field and provide value for money.

"By working in partnership with the PCG, we will not only be able to provide outstanding benefits to the network, but also offer a significant new service to existing PRCA agency and in-house members."

New secretary to crack down on tax avoidance

Fri, 21 May 2010 11:57:10 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK who don’t currently use the services of a specialist accountancy service provider could be encouraged to do so after a recent pledge to crack down on tax avoidance.

Liberal Democrat MP Vince Cable, who was recently appointed secretary of state for business in the new coalition government, has vowed to make sure that all taxpayers "pay their share".

In a recent interview with the Telegraph newspaper, Mr Cable said: "This new government will be working towards a tax system that is robust and fair and everyone pays their share.

"Tackling tax avoidance by businesses is essential and this is an area that I will be looking at closely in my new role."

Contractors and other enterprises could also be affected by a number of changes to the UK's tax regime next month when chancellor George Osborne delivers his first emergency Budget.

Mr Osborne has vowed to improve the UK's tax regime by reducing the amount of tax legislation and red tape faced by the country's businesses.

Chancellor promises simpler tax regime

Fri, 21 May 2010 11:05:35 GMT

Posted by James Curtis

Contractors working across a number of different industries in the UK could be among those to be encouraged by a recent pledge to reduce business red tape.

Chancellor of the exchequer George Osborne has vowed to cut the amount of tax legislation faced by enterprises in a bid to create a simpler tax system.

In a speech at the Confederation of British Industry's (CBI) annual conference Mr Osborne said that the UK's tax legislation handbook now resembles a "spider web".

The Conservative MP explained that since labour came to power in 1997, the handbook has doubled in length and now includes more than 11,000 pages.

Mr Osborne, who is scheduled to deliver his first emergency Budget on June 22nd, vowed to announce measures that will "improve our society with radical tax reform".

He said: "This spider-web of tax rules is holding back people who want to set up businesses … so we need wholesale reform.

"I want corporate tax reform to be a priority for this government and I can confirm that the final coalition agreement … will commit us to lower and simpler corporate tax rates."

Demand for technology experts 'remains high'

Thu, 20 May 2010 05:00:25 GMT

Posted by Alex Turner

Contractors working in the UK's high technology sector could be among those to be encouraged by claims that demand for their skills has remained high despite the recession.

According to a new report by recruitment consultancy ATA Selection, high technology firms have weathered the economic storm better than most and as a result demand for workers with specialist skills in electronics, embedded software development, circuit design and research and development has remained high.

Andrew Hardaker, managing director of ATA Selection, said: "As politicians keep reminding us, the future competitiveness of the UK's economy will depend on us thinking more smartly and developing an innovative, high-technology sector of world-beating standards.

"Certainly companies in this sector appear to be thriving and there are good opportunities for highly-skilled people in these fields."

The comments follow the publication of a report from the Confederation of British Industry (CBI), which revealed that in the future, demand for highly-skilled workers is set to increase.

However, according to the CBI study, a number of employers are already having difficulties in filling roles that require high-levels of qualification

REC to discuss AWR at 'earliest opportunity'

Thu, 20 May 2010 02:19:08 GMT

Posted by James Curtis

The Recruitment and Employment Confederation (REC) has voiced its intentions to hold discussion with new members of the cabinet with regard to recruitment industry regulations.

This could come as good news to a number of contractors as the REC highlighted the impending Agency Workers Regulations (AWR) as a priority for the discussions.

It follows the recent announcement that Liberal Democrat MPs Vince Cable and Edward Davey have been appointed as secretary of state for business and business minister respectively.

Anne Fairweather, head of policy at the REC, said the organisation will look to discuss the "vital" role of temporary and contact workers with the MPs as soon as possible.

She said: "The REC will be making immediate representations to ensure that the industry's concerns are taken on board and that the vital role of agency work is well understood.

"The current economic climate makes it more important than ever to implement the regulations in a way that protects the flexibility of the UK labour market."

Government should 'rebalance tax system' to create tech jobs

Thu, 20 May 2010 11:59:29 GMT

Posted by Alex Turner

UK contractors working as sole traders of limited companies in the technology sector could be among those to be encouraged by recent calls from a new report.

Technology sector trade association Intellect has published a new manifesto entitled Making BrITain Great Again, which called on the new coalition government to "rebalance" the UK's tax system in order to create 250,000 new IT jobs.

The manifesto makes a number of recommendations including a "radical" change of tax incentives available to enterprises looking to invest in technology businesses and the implementation of financial incentives for tech-based enterprises capable of "accelerating world-leading research".

According to Intellect, by extending the research and development scheme to all ICT outfits in the UK, the government could create 131,368 jobs in the ICT sector and a further 63,605 in the supply chain.

John Higgins, the firm's director general, said: "Software and technology can make a more significant contribution to Britain's GDP and deliver the high value jobs of the future. We must put them at the heart of economic growth in this country.

"However, in order for high tech businesses to thrive in the UK we must create the right tax environment, a healthy supply of skilled workers and ensure that we have a first-class digital infrastructure."

New CIOT president calls for 'simple' tax regime

Thu, 20 May 2010 11:00:40 GMT

Posted by James Curtis

Contractors working in the UK could be among those to be encouraged by the recent calls of one tax organisation.

In a letter to George Osborne, the new chancellor of the exchequer, the Chartered Institute of Taxation (CIOT) has called for the UK's tax regime to consist of "simplicity and certainty".

The calls come as the chancellor prepares to deliver his first Budget on June 22nd.

Vincent Oratore, who became the CIOT's new president at its recent annual general meeting, has written to the chancellor to suggest that tax law reform should be high on his list of priorities.

"As you prepare for your first Budget, I am sure you will have regard to the administration of tax as well as its rates and incidence," the president said.

"Taxpayers understand the pressures of the times but they will not understand if the Budget makes compliance with their legal obligations more difficult."

Professional social networking boosted by recession

Wed, 19 May 2010 04:27:38 GMT

Posted by Alex Turner

Limited company contractors could be among those using professional social networks to establish links with potential employers.

According to Reuters, web experts at its Global Technology Summit said activity on professional social networking sites has soared during the recession.

They said membership of websites such as LinkedIn and Viadeo has risen substantially in recent years.

"Because of the recession a lot of people have updated their resumes and increased their professional networking activities," said Martin Olausson, director of the digital media strategies unit at research firm Strategy Analytics.

There are more than 65 million people using LinkedIn as part of their job hunting strategy, while 30 million people use Viadeo.

Clare Goodwin, sales director at networking portal womenintechnology.co.uk, claimed recently that knowledge of social networks is now key to job hunting.

She said that social networking sites have made networking with other industry professionals much easier and can help job seekers land their dream post.

33 million UK adults to work beyond retirement

Wed, 19 May 2010 10:12:20 GMT

Posted by Alex Turner

Contractors working in the UK could be among those who find themselves working beyond retirement age.

According to a new survey by insurance group Aviva, almost 70 per cent of UK adults intend to carry on working into their retirement years.

The research showed that although 31 per cent of people would like to retire between the ages of 61 and 65, some 29 per cent envisage working until they are between 66 and 70.

Six out of ten cited financial issues as their reason for working past retirement, while keeping the mind active and interacting with others was the motivation for almost half of those questioned.

Self-employment was named as the most attractive post-retirement employment option by 61 per cent of respondents, followed by retail work, which was cited by 44 per cent.

Clive Bolton, at-retirement director for Aviva Life, said: "With 61 per cent of people seeing self-employment as the best career choice for retirement, it is important to ensure that sensible financial plans are made to boost income after the traditional retirement age."

A recent report by Kensington Mortgages revealed that the recession had prompted many people to turn to become self-employed contractors, with 24 per cent of those who are currently self-employed having been so for less than two years.

FSB call on government not to place further 'tax burden' on business

Tue, 18 May 2010 03:40:03 GMT

Posted by James Curtis

Limited company contractors working in the UK could be among those to be encouraged by the recent calls of one businesses organisation.

The Federation of Small Businesses (FSB) has called on the new coalition government not to increase the tax burden faced by UK enterprises.

It follows the recent announcement that chancellor George Osborne will deliver an emergency Budget on June 22nd.

A recent FSB-ICM poll revealed that 93 per cent of small UK enterprises feel the new government must outline "robust" plans for reducing the country's budget deficit.

John Walker, national chairman of the FSB, said: "We welcome the news that the government will set out a clear spending review in the coming weeks ahead of the Budget as this is an issue of concern to many small business owners.

"We urge the government not to place further taxation burdens on small businesses at a time when the recovery is fragile and would like to see measures announced which will promote business growth and encourage employment."

UK set for increased demand of highly-skilled workers, says CBI

Tue, 18 May 2010 12:20:06 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK's science and engineering sectors could be among those to benefit from an increasing demand for their services, it has been suggested.

A recently-published report from the Confederation of British Industry (CBI) has revealed that demand for highly-skilled workers will "intensify" as the country recovers from the effects of the recession.

Richard Lambert, CBI director-general, said: "As we move further into recovery and businesses plan for growth, the demand for people with high-quality skills and qualifications will intensify."

However, the study also revealed that the UK is suffering somewhat of a shortage of highly-skilled workers, with 51 per cent of employers saying they are concerned that they will struggle to fill posts that require graduate level qualifications over the next few years.

Mr Lambert said the results show that the new government needs to focus on ensuring there are enough highly-skilled workers coming through the system to meet future demand.

"In the future, people with qualifications in science and maths will be particularly sought after, and firms say it is already hard to find people with the right technical or engineering skills. The new government must make encouraging more young people to study science-related subjects a top priority," he added.

Public sector spending cuts should be 'handled with care'

Tue, 18 May 2010 10:49:26 GMT

Posted by Alex Turner

Government plans to cut £6 billion from the public sector budget should be "handled with care", according to one employment group.

The recruitment and Employment Confederation (REC) has called on the new coalition not to make any "knee-jerk" cuts as this could damage the already fragile jobs market.

It follows the government confirmation that £6 billion will be cut from public sector spending and an announcement that George Osborne, the new chancellor of the exchequer, will deliver an emergency Budget on June 22nd.

Tom Hadley, the REC's director of external relations, said: "Agency budgets will come under pressure but the reality is that temporary and contract workers are not brought in on a whim - they perform crucial frontline roles.

"Challenging pre-conceived ideas and off-the-peg solutions will play a key role in achieving sustainable reform as well as lasting improvements in productivity and innovation."

Mr Hadley's comments come as part of the REC's ongoing Public Sector Resourcing campaign, which has been highlighting the important role temporary and contract staff can play in the UK's economic recovery.

Next few weeks 'will be crucial', says REC

Mon, 17 May 2010 04:55:35 GMT

Posted by Alex Turner

The next few weeks will be "crucial" in shaping the future of the UK's employment sector, it has been claimed.

According to the Recruitment and Employment Confederation (REC), as the new coalition government constructs its cabinet, the REC must seize the opportunity to enter discussion in order to ensure that employment issues are seen as a priority.

The comments follow the announcement of some of the cabinet roles that have recently been allocated including the Liberal Democrats' Vince Cable as secretary of state for business and the Conservatives' Iain Duncan Smith as secretary of state for work and pensions.

Anne Fairweather, the REC's head of public policy, said: "An important part of the REC's work over the last few years has been to build links with the opposition parties, which means that we already have a good relationship with a number of the new cabinet members.

"This is a good base but there is no doubt that the next few weeks and months will be crucial in getting our messages across on issues such as employment regulation, labour market policy, taxation and public sector reform."

Public sector job cuts will not be 'cataclysmic'

Mon, 17 May 2010 02:56:33 GMT

Posted by James Curtis

Contractors who rely on public sector work in the UK could be encouraged by the comments of one leading economist.

Philip Shaw, chief economist at specialist banking group Investec, said that while public sector spending cuts will lead to the loss of some jobs, the top priority of the new government will be to control wages.

"We are not expecting anything particularly cataclysmic, we think that cost cutting in the public sector will be centred on trying to control wages but there may well be some modest falls in employment across the public sector as a whole over the next couple of years," he said.

The expert said "mass lay-offs" are not to be expected, but if people leave public sector jobs or contracts they are unlikely to be replaced as quickly as in the past.

Contractors could also be encouraged by the economist's views on the private sector, which he said will see a growth in employment in the medium-term.

"Overall, say in an 18-month to two year period we expect to see the total number of jobs rising modestly but with all of those gains being placed in the private sector," he added.

PCG backs coalition government

Mon, 17 May 2010 11:58:20 GMT

Posted by Alex Turner

The Professional Contractors Group (PCG) has backed the newly-formed coalition government to lead the UK to economic recovery.

This could come as good news to a number of contractors as the PCG said the Conservative and Liberal Democrat parties can work together to address issues faced by freelancers.

According to the PCG, the formation of a Tory-Lib Dem government could be good news for the abolition of IR35, which the organisation said "hinders" the ability of contractors to contribute to the UK's economic recovery.

John Brazier, PCG managing director, said: "We are obviously in uncharted waters. However, PCG has established a good working relationship with both the Conservatives and the Lib Dems in opposition and we are confident this will continue in government.

"Both parties have expressed the need for change with regards to IR35 and both parties value the flexible, skilled workforce PCG members provide."

The organisation said it is ready and willing to work alongside the new government in a bid to help the UK's 1.4 million contractors work "unhindered" in providing the specialist skills the country needs to "climb out of recession".

Taxation must be fair and transparent, says CIOT

Mon, 17 May 2010 10:59:02 GMT

Posted by James Curtis

Contractors working in the UK could be among those to be encouraged by new calls from one tax organisation.

The Chartered Institute of Taxation (CIOT) has called on the UK to make sure its tax regime is "proportionate, fair and transparent".

It follows the publication of the organisation's review of the first year of HM Revenue & Customs' (HMRC) new powers regime.

According to the CIOT, the introduction of the new regime has not led to an "excessive and inappropriate" use of HMRC powers as some experts had warned.

However, the review highlighted a number of areas for improvement and called for greater clarity on the use of regulations.

CIOT president Andrew Hubbard said: "There is a clear need for a ‘route map' showing taxpayers and their advisers how the various powers and sanctions fit together," he said.

"HMRC seem reluctant either to impose high penalties for deliberate understatement or to accept that there have been innocent errors in some cases, instead going in almost every case for the middle option of determining a failure to take reasonable care."

ARC: Coalition should reduce employment regulation introduced by Labour

Fri, 14 May 2010 04:20:35 GMT

Posted by Alex Turner

The new coalition government should focus on cutting back on the excess of employment regulation that was created by the previous Labour government.

This is the view of the Association of Recruitment Consultancies (ARC), which said employers and recruitment agencies have been "flooded" with regulations and legislation over the last 13 years.

Adrian Marlowe, the organisation's chairman, said: "Employers and recruitment agencies have been flooded with legislation and regulations which have reportedly cost the UK economy well over £170 billion over the last decade.

"Much of this emanates from EU legislation and the new government should focus on weeding out regulations that inhibit business from generating new jobs."

The expert also noted the Liberal Democrats commitment to ending the "gold plating" of EU rules and the Conservatives desire to review Agency Workers Regulations as good news.

He added: "The Conservatives also promised to review the AWR if there was sufficient representation from the recruitment industry. The ARC will certainly be pressing for this."

Social networking 'key to job hunting'

Fri, 14 May 2010 12:47:31 GMT

Contractors seeking opportunities could be inspired to use social networking sites after hearing that such portals can assist job hunting.

Recruitment website womenintechnology.co.uk said that sites such as Facebook, LinkedIn and Twitter are very helpful for people looking for work.

This is because they allow users to maintain crucial contacts by staying in touch with friends, colleagues and business partners, both past and present.

Claire Goodwin, sales director at the online job board, said: "Without these [portals], networking would be significantly harder."

"The importance of networking can't be emphasised enough - you never know who could lead you to your next job or opportunity," she added.

Last week, a report from Kensington Mortgages suggested that the recession has led more than a million people to make the move from permanent roles to self-employment.

Almost one in four self-employed workers has been so for less than two years, the broker found.

Posted by Alex Turner

HMRC increasingly rejecting VAT Time to Pay requests

Fri, 14 May 2010 12:46:49 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a number of UK industries could be among those finding it more difficult to enter Time to Pay agreements with HM Revenue & Customs (HMRC).

New figures have revealed that HMRC rejected 11.2 per cent of all VAT Time to Pay requests in the first quarter of this year.

This more than doubled the 5.3 per cent of requests that were rejected in the same period in 2009.

The figures have been brought to light following a Freedom of Information request by IT finance provider Syscap.

According to the firm, many enterprises are unable to pay their VAT bills as they are awaiting payment of invoices form customers.

Philip White, Syscap chief executive, said: "[Enterprises] are still finding it incredibly hard to borrow money from their bank to pay HMRC VAT so news that the HMRC refusal rate has shot up is worrying.

"Whilst HMRC say there is no change in policy over granting credit for VAT payments it does seem they are enforcing existing policy in a way that has increased the number of refusals quite dramatically."

Fraudsters send out HMRC e-mails

Fri, 14 May 2010 09:55:56 GMT

Posted by James Curtis

E-mails from internet fraudsters claiming to offer tax refunds have been sent to a number of taxpayers.

The scam, which is an attempt to obtain private information including bank details, could see a number of sole traders and limited companies targeted.

People receiving the 'online notification' e-mails will be told they are due a tax refund from HM Revenue & Customs (HMRC), but due to the high volume of calls the department will be unable to deal with the rebate by telephone.

Victims are then urged to visit a fraudulent website in order to process their information and receive their rebate.

However, HMRC has moved to warn taxpayers that under no circumstances does the department notify taxpayers of a rebate by e-mail.

A spokesman for the department said: "HMRC would not inform customers of a tax rebate via email, or invite them to complete an online form to receive a rebate of tax."

Agency workers 'vital' in sustaining recovery

Thu, 13 May 2010 05:57:07 GMT

Posted by Alex Turner

Contractors and agency workers will play a "vital" role in sustaining the UK's "fragile" economic recovery.

This is the view of the Recruitment and Employment Confederation (REC) following the publication of its latest JobsOutlook report.

According to the survey, 88 per cent of employers expect to either maintain or increase their use of temporary workers in the next three months, a two per cent rise on the previous report.

REC director of research Roger Tweedy said: "Again, our findings show the vital role agency workers are now playing in helping to sustain the fragile economic recovery and in providing a bridge in capacity until employers begin to grow their permanent workforces more significantly in the autumn."

He added: "The current demand for agency workers is spearheading the jobs market and again reinforces the importance of a flexible workforce while the economic recovery continues."

The expert explained that contractors and agency workers will play a key role in supporting the economy while the new government focuses on delivering strong conditions for businesses to grow.

CBI: Labour market conditions to remain tough for some time

Thu, 13 May 2010 02:04:18 GMT

Posted by James Curtis

Contractors working in the UK could find placements hard to come by for some time, it has been suggested.

According to the Confederation of British Industry (CBI), recently-released unemployment figures show that the UK's labour market is in a "fragile" recovery.

John Cridland, CBI deputy director-general, said any recovery is expected to be slow with conditions remaining difficult for the foreseeable future.

The comments follow the publication of the latest Office for National Statistics labour market report, which revealed that 2.51 million people were out of a job in the UK between January and March of this year.

"These jobs figures show how fragile the recovery is, and we expect tough labour market conditions to continue for some time," said Mr Cridland.

"It is notable that [the number of people] working part-time because they cannot get a full-time job is over one million. Earnings growth, excluding bonuses, was largely driven by the public sector."

Unemployment creeps to 2.51 million

Thu, 13 May 2010 12:16:35 GMT

Posted by James Curtis

Contractors working in the UK could be among those to be concerned by the country's current unemployment rate.

Figures from the Office for National Statistics' (ONS) latest labour market report revealed that the unemployment rate in the UK was 8.0 per cent between January and March 2010.

The means that 2.51 million people were out of work in the first three months of the year.

According to the study, 8.17 million of the UK working-age population were "inactive" during the quarter.

However, the report also revealed that pay levels have increased, with workers earning 1.9 per cent more than last year in regular pay without bonuses.

Ann Robinson, director of consumer policy at uSwitch.com, said the figures should inspire people to curb their spending.

"Taking second or third jobs to fund lifestyles is becoming increasingly difficult for a nation that already works the longest hours in Europe," she said.

"And with the new government planning to cut the deficit, it is highly possible that public sector jobs will be at risk. It really is time for consumers to batten down the hatches."

New government should focus on jobs, says REC

Thu, 13 May 2010 10:24:40 GMT

Posted by Alex Turner

The new government should focus on job creation and boosting the country's flexible labour market, according to the Recruitment and Employment Confederation (REC).

It follows the news that the Conservative and Liberal Democrat parties have formed a coalition government; which sees party leaders David Cameron and Nick Clegg assume the roles of prime minister and deputy prime minister respectively.

Figures released yesterday by the Office for National Statistics revealed that 2.51 million people were unemployed in the UK between January and March of this year.

Commenting on the situation, REC chief executive Kevin Green said: "The latest unemployment figures are one of the first indicators that the new government has on the state of the economy and the fragility of the jobs market.

"Reducing unemployment and creating jobs should be the central priority of this new administration. Our flexible jobs market has already ensured that unemployment has not reached the levels seen in other European countries and will play a major role in helping people back into work."

IT contractor wins IR35 compliance case

Wed, 12 May 2010 03:21:52 GMT

Posted by Alex Turner

An IT analyst embroiled in an IR35 compliance case for the last five years has secured an unlikely victory in an appeal against HM Revenue & Customs (HMRC).

The tax department began an investigation into Novak Brajkovic, who worked as a self-employed computer analyst and programmer for Avecia.

Mr Brajkovic also owns the majority of company called Novasoft, shout99.com reported.

A Manchester tax tribunal ruled that the contractor had not been "part and parcel" of Avecia's organisation during the two years being examined - 2000 to 2002.

When IR35 legislation was introduced at the turn of the millennium, HMRC served formal notices to Novasoft on the grounds that Mr Brajkovic was essentially a "disguised employee".

"Brajkovic did not present an image of a businessman offering his services to the marketplace; rather, of someone comfortable working for the same client on terms equivalent to employment," HMRC said.

Commissioners later deemed that Mr Brajkovic's arrangement with Avecia, a bio-technology company, was satisfactory.

IR35's aim is to eliminate contractors not paying tax and national insurance contributions.

Commenting, Martin Hesketh, managing director of Brookson, said: "This is a borderline case which needed the Tax Tribunal's input. However, most contractors can address the deficiencies which Mr Brajkovic faced in this case by ensuring that their contracts contain clauses which, when mirrored in the working practices, demonstrate an arms length relationship as an independent contractor. This stresses the importance of contractors continually reviewing their IR35 status.

"The case highlights that working irregular and flexible hours is an excellent way of showing that you are not subject to your client's control. Whereas working fixed hours, similar to those worked by employees, will certainly go against you in the event of an HMRC enquiry."

EC launches double taxation consultation

Tue, 11 May 2010 04:40:17 GMT

Posted by Alex Turner

Contractors working in the UK who have suffered double taxation when two or more EU member states have applied tax on a single income could be among those allowed to air their views in a new consultation.

The European Commission (EC) has invited businesses and individuals who have encountered double taxation to submit their experiences for the report.

"We want to obtain a picture of the real size of the problem and of its financial impact," the EC said.

"In a case where the double taxation has been eliminated after your appeal to tax authorities, we would also like to know how long it has taken for this to happen. You are also invited to provide any suggestions you might have for ways in which the different cases of double taxation in the EU could be avoided."

Following the consultation, the EC said it will launch a debate to consider if there is a need for action to eliminate certain cases.

Government should increase outsourcing to private sector, says report

Tue, 11 May 2010 04:07:19 GMT

Posted by James Curtis

Contractors working in the UK's private sector could be among those interested in the results of a recent poll.

According to the survey, which was carried out by interim management solutions provider Interim Partners, the main priority of the next government should be to increase the outsourcing of work to the private sector.

The report, which questioned 1,475 interim executives, revealed that a 29.7 per cent majority of respondents feel outsourcing Whitehall functions to the private sector should be the top priority.

Reducing headcount by increasing investment in IT (21 per cent) and introducing "tougher" targets (20.6 per cent) were also seen as important to the future political agenda.

Doug Baird, managing director of Interim Partners, said: "A lot of interims have spent the credit crunch implementing belt-tightening measures for businesses so they are definitely a constituency worth listening to.

"From their hands-on experience of implementing cost saving programmes across thousands of public and private sector organisations, interims say that the best way of balancing savings against service is through outsourcing."

Recruitment firm signs up for trade body membership

Tue, 11 May 2010 11:21:11 GMT

Posted by Alex Turner

UK contractors who use recruitment firm Kelly Services to secure placements could be set to benefit from an improved service after the firm announced it had joined the recruitment industry's trade body.

John Callagher, the organisation's UK and Ireland country manager, confirmed that the business has signed up to become a member of the Recruitment and Employment Confederation (REC).

"Kelly Services is proud to be a member of the REC, an organisation that performs a critical role in making sure our industry is recognised for its contribution to the economy," he said.

"Perhaps more critically it helps our customers and prospective clients recognise that we adhere to the standards set out in the REC's Code of Professional Practice."

Kevin Green, chief executive of the REC, said the decision for Kelly Services to become one of its members will allow the recruitment industry to move forward in its bid to be "speaking with one voice".

Brown and out

Tue, 11 May 2010 09:56:29 GMT

Posted by James Curtis

Prime minister Gordon Brown has offered to resign as the UK's leader in the hope of encouraging the Liberal Democrats to form a coalition government with the Labour party.

Mr Brown made the announcement in a statement read outside number ten Downing Street last night (May 10th).

The decision comes at a time when sole traders, limited companies and other workers wait to find out what the future holds in terms of UK government.

Commenting on the fact that the general election failed to deliver an outright victor, Mr Brown said: "As leader of my party I must accept that that is a judgement on me. I therefore intend to ask the Labour Party to set in train the processes needed for its own leadership election.

"I would hope that it would be completed in time for the new leader to be in post by the time of the Labour party conference. I will play no part in that contest, I will back no individual candidate."

Experts have now voiced concerns that should Labour and the Lib Dems come to an agreement, the UK could be ruled by a second successive unelected prime minister.

AWR to restrict flexibility in oil and gas sector, says AGCC

Mon, 10 May 2010 04:52:34 GMT

Posted by Alex Turner

Contractors working in the UK's oil and gas sector could be set to see their opportunities restricted once the agency workers regulations (AWR) are enforced.

This is the view of the Aberdeen & Grampian Chamber of Commerce (AGCC) following the publication of its latest Oil and Gas Survey, which revealed a "marked difference" in how the economic downturn has impacted permanent and temporary workers in the sector.

One expert told the organisation that the introduction of the AWR, which are set to come into effect in October next year, is evidence of further regulation being brought in without sufficient attention being paid to the impact it will have on certain industries.

Peter Sharp, an employment and pensions team partner at law firm McGrigors', told the AGCC that the sector is in a "transition period" and requires a great deal of employment flexibility.

He said: "The survey shows the marked difference of the impact of a downturn in activity as between permanent and temporary and contract staff. This is in large measure explained by the regulatory protection of permanent employees.

"The flexibility which currently exists in relation to non-permanent staff will be restricted by the AWR coming into force next year."

IT services revenue declines

Mon, 10 May 2010 01:29:16 GMT

Posted by James Curtis

IT contractors working in the UK could be among those to have been affected by the declining revenue of the global IT services sector.

According to a recent report from technology research giant Gartner, revenue for IT services declined 5.3 per cent in 2009.

The study revealed that in 2009 $763 billion (£506 billion) was spent on IT services, compared to $805 billion in the previous year.

Kathryn Hale, research vice president for Gartner's worldwide IT services group, said service providers experienced "a year like no other" in 2009 as they changed their business focus from aggressive sales to managing costs and profitability.

While this year is set to see some recovery, IT contractors cold notice that large providers are still focussed on maintaining profits, Gartner said.

Ms Hale commented: "The discipline exercised in 2009 leaves the industry profitable and relatively nimble.

"But investors will expect to see revenue growth and managing those expectations, while maintaining margins will be more challenging than the comparatively unambiguous goals of 2009, a year in which expectations were modest."

Self-employed 'can make mistake of mixing business and personal finances'

Mon, 10 May 2010 12:10:59 GMT

Posted by Alex Turner

Sole traders and limited companies working in the UK could be inspired to seek advice from a contractor accountant following the comments of one financial organisation.

The Consumer Credit Counselling Service (CCCS) has highlighted how easy it can be for self-employed workers to mix their business and personal finances.

A spokesperson for the organisation said: "Self employment carries risks so it is essential that people considering it know how to manage and separate their business and personal finances.

"Some may take out loans and credit cards to support their businesses during tough times, or use the same bank account for both business transactions and their personal day to day spending."

The CCCS explained that once business and personal finances become mixed up, problems in one area can spill into others "more easily".

A report published by Kensington Mortgages, a specialist home loan provider, earlier this month revealed that self-employment has increased since the onset of the recession.

According to the study, 1.2 million people have started to work for themselves during the past 24 months.

Political 'twilight zone' to delay review of AWR

Mon, 10 May 2010 10:06:50 GMT

Posted by James Curtis

The hung parliament result in the general election is likely to have a negative impact on the recruitment industry, it has been suggested.

This could affect a number of contractors working in the country as the Recruitment and Employment Confederation (REC) said the "political twilight zone" could delay some of its priorities such as a review of the Agency Workers Regulations (AWR).

Since the result was announced, a number of meetings have taken place between the three main political parties to see if a coalition government of some description can be formed.

Kevin Green, REC chief executive, called on the next government to deliver an economic climate which will enable businesses to "create the prosperity and jobs our country needs".

Mr Green said whoever is in power must reduce the deficit and reform public services, rather than implement short-term cuts.

"We need a well executed programme of productivity improvement and innovation in the delivery of critical public services," he added.

REC steps up AWR campaign

Fri, 07 May 2010 04:43:05 GMT

Posted by James Curtis

Contractors working in a wide range of UK sectors could be set to benefit from an increased focus on client perspective among the country's recruitment firms.

Industry body the Recruitment and Employment Confederation (REC), has announced that the next stage of its Agency Workers Regulations (AWR) campaign will highlight how the legislation will affect internal procedures and managing temporary staff.

Tom Hadley, the REC's director of external relations, said: "One of the overriding messages from employers has been the need to work closely with their recruitment partners.

"Many employers are now in 'impact-assessment mode' which is why it is crucial to address common misconceptions about the new regulations."

The AWR was laid before parliament earlier this year and is scheduled to come into effect on October 1st next year.

Under the legislation, contractors and agency workers could be given the same employment rights as permanent staff members after 12 weeks in the same role.

Contractors urged to use 'transparent' service providers

Fri, 07 May 2010 02:46:36 GMT

Posted by Alex Turner

Contractors in the UK who decide to work through a recruitment business should ensure they are dealing with a "transparent" service provider.

That is according to the Freelancer and Contractor Services Association (FCSA), which said contractors should "move on elsewhere" if a potential provider appears to be pushing them into a particular working option.

Writing for advice website Contractor Eye, FCSA chairman Stuart Davis, said: "When examining what services they do offer, find out how far they will go to make your life easier.

"It is the difference between the provider providing you with advice and support on, for example, what travel expenses you can and can't claim, and them simply sending you a copy of the official guidance. Life as a freelancer can be stressful as it is, so why make it even more so?"

The FCSA, of which accountancy and support service provider Brookson is a member, was launched last month as a rebranded version of the Service Providers Association.

Pay decrease for web developers

Fri, 07 May 2010 11:08:53 GMT

Posted by James Curtis

IT contractors working in web development have seen their pay rates fall over the last decade, according to a new report.

Recently-released figures from the Association of Professional Staffing Companies (APSCo) revealed that average pay for contract web developers has decreased by 36 per cent over the last ten years.

According to the report, IT contractors working for dot com firms in 2000 could command wages of £60 per hour.

However, contractors with IT skills in programmes such as Java, now earn between £40 and £45 per hour.

"Huge numbers of developers jumped on the web development bandwagon just as the market nosedived," said the APSCo.

"The skills shortages that existed back in 2000 are nowhere near as acute ten years on, so rates have never really recovered."

Gerald Morgan, managing director of IT recruitment firm ReadyPeople said that while "the sky is the limit" for highly-skilled Java developers with PhD level maths, rates for developers are generally one-third below what they were ten years ago.

FPB: Enterprises to be disappointed with election result

Fri, 07 May 2010 11:06:33 GMT

Posted by Alex Turner

Limited company contractors and other UK enterprises could be among those to be disappointed with the outcome of last night's (May 6th) election.

With the most likely outcome being a hung parliament, the Forum of Private Businesses (FPB) has called on MPs to put aside their political differences and concentrate on creating a "credible" governing system.

With just 35 seats left to be declared this morning, none of the three main parties contesting the election can gain the required 326 to form a majority government.

Phil Orford, FPB chief executive said the result will leave many smaller enterprises disappointed.

"The outcome can't be changed so it is vital that the newly-elected MPs put aside party politics and work together to come up with a credible system of governance," he commented.

"With the economy still in a very precarious state and a mountain of public debt to be tackled, business owners need our elected representatives to move away from inter-party point-scoring and show political responsibility."

Contractors want rid of IR35, survey finds

Thu, 06 May 2010 11:58:47 GMT

Posted by Alex Turner

Nothing would please UK contractors more than to see the back of the "contentious" IR35 tax legislation, according to a new survey.

A sample of readers' opinions by advice website ContractorUK revealed that abolishing IR35 is "overwhelmingly" the one measure that contractors want to see from the next government.

According to the website, repealing the 1998 law as part of a wider reform of the tax system is more important to contractors than being guaranteed work from "lucrative" government contracts.

One contractor responded to the survey by saying improved access to public sector contracts will not work unless IR35 is removed.

"I'd like the party in power to encourage micro-businesses rather than view them with distrust and suspicion. Reviewing their tax laws, including IR35, would be a big help," she told the website.

Earlier this month, the Professional Contractors Group stated that its discussions with the three main political parties had left it "optimistic" that IR35 will be given a detailed review after the election.

The result of the election is expected to be announced in the early hours of tomorrow morning (May 7th) with voters taking to polling stations until 22:00 tonight.

Contractors face 'tax on tax' in UK

Thu, 06 May 2010 09:53:54 GMT

Posted by James Curtis

Contractors working in the UK could be inspired to seek accountancy services after one expert highlighted the "restrictive" nature of the country's tax regime.

Rhiannon Davies, co-founder of international lifestyle magazine Shelter Offshore, said that the UK makes life difficult for self-employed workers in a number of ways including forcing them to pay a "tax on tax".

"The UK restricts self-employed individuals on so many levels – such as with excessive taxation – the self-employed pay Class 4 National Insurance contributions, for example, which is effectively a tax on tax," she said.

Ms Davies said successful UK contractors, such as sole traders and limited companies, also have to face a challenging credit environment and jealousy among other Brits.

"The banks won't lend to support small businesses in Britain, and there is a strange attitude amongst Brits that really resents successful individuals," she added.

Despite the comments, a recent report from specialist mortgage provider Kensington revealed that 1.2 million Britons have become self-employed since March 2008.

The organisation said the impact of the recession has inspired a number of people to be their own boss.

Recession inspired people to become their own boss, report shows

Thu, 06 May 2010 09:50:59 GMT

Posted by Alex Turner

A number of Britons have been inspired by the impact of the recession to become self-employed contractors, a new report has suggested.

According to a recently-published study by Kensington Mortgages, 24 per cent of people who are self-employed have been so for less than two years.

The organisation calculated that this means 1.2 million have become self-employed since March 2008, after which the UK's economy contracted for a consecutive six quarters.

Charles Morley, head of sales and product development at Kensington, said: "This research supports the anecdotal evidence that the number of self-employed workers increases during a recession when businesses reduce the number of permanent staff they employ.

"I'm sure we all know somebody who has harboured ambitions of being their own boss and only taken the opportunity to do so when their employer has started to make cut backs."

The report also showed that 12 per cent of self-employed workers have been working for themselves for less than 12 months.

Vacancies to rise at a steady rate, says expert

Thu, 06 May 2010 09:49:57 GMT

Posted by James Curtis

Contractors working in a number of UK industries could be among those set to notice a "steady rise" in the number of vacancies available.

Cheryl Morgan, a spokesperson for recruitment firm Jobsite, said that while the impact of the recession means recruitment for companies will remain "cautious", vacancies should continue to rise "at a steady rate" over the next few months.

The comments follow the publication of the latest Report on Jobs by the Recruitment and Employment Confederation (REC), which revealed "marked" increases in temporary and contract staff appointments.

Ms Morgan said that in order to attract the best candidates for jobs, businesses should track the effectiveness of their recruitment methods.

"They should know where the most relevant applications come from. They should also make clear the various benefits of working for that organisation e.g. flexible hours, greater holiday entitlement, clear pay scales etc to attract the best candidates to the role," she said.

The REC report also showed that hourly pay for contractors has increased at the fastest rate for more than two years.

Contractor pay increases at fastest rate for two years

Wed, 05 May 2010 02:01:43 GMT

Posted by James Curtis

Contractors have seen their hourly pay rates increase at the fastest pace for more than two years, according to new figures.

The latest monthly Report on Jobs from the Recruitment and Employment Confederation (REC) also revealed that temporary and contract appointments continued to rise last month, with vacancies increasing at the sharpest rate sine January 2008.

According to the study, short-term staff billings remained "substantial" despite slipping from a 34-month high in the previous report.

Ahead of the forthcoming general election, REC chief executive Kevin Green called on the victorious party to look at the private sector for inspiration on how to limit job losses.

"The incoming government must address two immediate priorities – stimulating jobs growth and reducing expenditure without creating a public sector recession through shedding thousands of posts," he said.

"Private sector employers have used short-time work, sabbaticals and pay freezes as a means of reducing costs whilst retaining high-performing staff. Innovative resourcing strategies will be equally crucial within the public sector."

Number of City candidates 'halved' last year

Wed, 05 May 2010 12:02:31 GMT

Posted by Alex Turner

Contractors working within the UK financial services sector could be among those to be encouraged by new figures that suggest competition for places is easing.

A recently-published report from specialist recruiter Astbury Marsden has revealed that the number of qualified candidates for each City job vacancy has fallen from 5.7 to 2.7 in the 12 months to March 2010.

Mark Cameron, chief operating officer at Astbury Marsden, said the current market has left a number of financial establishments looking to recruit people who are currently taking a career break.

"Employers are now asking us to approach those employees who decided to spend the last six months renovating their house, backpacking or trying to get to grips with the farmland they bought years ago," he said.

"We have just placed a banker that has spent the last six months raising pedigree cattle - that's not so unusual."

However, the expert explained that the market is still "quite tough" and suggested that employers are still looking to hire the best candidates even if it means paying higher prices.

IT contractors suffer fall in opportunities

Wed, 05 May 2010 11:59:59 GMT

Posted by James Curtis

IT contractors working in the financial services industry have found placements harder to come by during the early part of 2010, according to a new report.

Data from the latest jobs study by pre-employment specialist Powerchex has revealed that IT contracting and investment banking were the only sections of the industry not to see an increase in employment.

The report, which compared the first quarter of this year with the three months to March 2009, showed that IT contractors have suffered a 50 per cent decline in the number of job opportunities.

However, other areas of the sector, particularly insurance firms, hedge funds and stockbrokerage firms, noticed a healthy increase in the number of employment offers being made.

Alexandra Kelly, a director at Powerchex, said recruitment levels are currently being held back due to the "threat" of a hung parliament result in tomorrow's (May 6th) election.

"We still haven't returned anywhere close to the levels of recruitment we were seeing pre-recession," she said.

"There seems little doubt that recruitment in 2010 is being adversely affected by the threat of a hung parliament and the as yet uncertain action that the new government will take against the banking sector."

REC re-launches model contracts

Wed, 05 May 2010 09:58:16 GMT

Posted by James Curtis

Contractors working in a wide range of British industries could be among those to be affected by changes to model contracts given to a number of recruitment firms.

Industry body the Recruitment and Employment Confederation (REC) has announced that is re-launching its library of revised model contracts for its corporate members.

Changes to the documents include a clarification of the differences between IR35 "friendly" documents and those for contractors working within IR35.

Standardised wording and a simplification of introduction fee clauses have also been added across the document range.

Fiona Coombe, the REC's director of professional services, said: "Our philosophy has always been to help members conduct their business by supporting with contract documentation which is fair and reasonable to both clients and candidates, while at the same time protecting members' interests within the legal framework of the recruitment environment."

The REC explained that the documents have been updated since their introduction in 1995 to reflect the need for "more complex and commercial terms" as the recruitment industry has grown from £3 billion to £22.5 billion over the last 15 years.

Hung parliament would cost millions of jobs, says veteran MP

Tue, 04 May 2010 04:27:19 GMT

Posted by Alex Turner

Sole traders and limited companies could be among those interested in one veteran MP's view of the "threat" of a hung parliament.

In an interview with the Sun newspaper, Ken Clarke, who was an MP during the last hung parliament in 1974, said the result would have a negative impact on economic confidence and could lead to the loss of millions of jobs and homes.

"A hung parliament is very dangerous. If people lose confidence in our ability to pay our debts then the International Monetary Fund will have to do it for us," he told the newspaper.

"People will have to worry about their jobs again because their businesses may not be able to pay high interest rates on borrowing. Mortgages will go up and there'll have to be more public sector cuts."

The comments come in stark contrast to the Professional Contractors Group's view that a hung parliament is increasingly being thought of as a chance for "refreshing" political change.

Hung parliament looking increasingly likely, says PCG

Tue, 04 May 2010 02:42:50 GMT

Posted by James Curtis

A hung parliament is looking to be the most likely outcome of the forthcoming general election, according to one group of contractor advisors.

The Professional Contractors Group (PCG) also said that the possibility of none of the three major parties obtaining an overall majority on Thursday (May 6th) is now being seen as a chance for a "refreshing change" in UK politics.

Writing for advice website ContractorCalculator.co.uk, John Brazier, PCG managing director, said a UK hung parliament would be less like the "extreme bipartisan" model seen in the US and more like the "collaborative" efforts that "prevail" in other European nations.

"If we see an administration formed of the best talent from diverse political parties with non-traditional power brokers, our message will not be diluted and the importance of contracting to the economic turnaround will not be forgotten," the expert said.

Mr Brazier also said the outcome of the election will not affect the PCG's commitment to "securing the abolition of IR35".

He stated that the organisation's communication with the Liberal Democrat, Conservative and Labour parties over the tax rule has left it confident of positive action being taken.

APSCo: Cost of using contractors 'set to jump'

Tue, 04 May 2010 12:11:04 GMT

Posted by Alex Turner

The cost of using contractors and temporary workers is set to increase after the general election, it has been claimed.

According to the Association of Professional Staffing Companies (APSCo), if the Agency Workers Regulations (AWR) are interpreted into UK law in their current form, businesses will need to pay higher rates for temporary workers.

Ann Swain, the organisation's chief executive, told freelancer advice website Shout 99: "It is disappointing that none of the three main parties are committed to improving employer flexibility at a time when the number of permanent vacancies has not yet recovered to pre-recession levels.

"Encouragingly, neither the Conservatives nor the Liberal Democrats explicitly endorse the AWR, suggesting that there may be an opportunity to get the regulations amended after the election prior to their implementation in 2011."

The association also expressed its desire to see a review of the IR35 tax rule, which it claimed had imposed "significant costs" on businesses using professional contractors.

Will contractors benefit from recruitment improvements?

Tue, 04 May 2010 10:38:09 GMT

Posted by James Curtis

Contractors working across a range of British industries could be set to benefit from improvement in the recruitment sector.

Industry body the Recruitment and Employment Confederation (REC) has issued a statement calling for feedback from recruitment firms on its qualifications programme.

The organisation, which currently offers Certificate, Diploma, Bachelor and Masters qualifications, is conducting a "major review" of its programme in order to meet the demand of the "burgeoning regulatory and business framework" in the sector.

It is hoped the review will lead to an improved system and help to develop a new generation of successful recruiters.

Judith Armatage, the REC's director of professional development, said: "Recruitment is a fast-moving industry and in order for its people to succeed, we are creating a qualifications framework to help drive it forward.

"This review is the most wide-ranging we have ever undertaken so we need to consult with as many recruiters as possible to ensure we ultimately deliver a qualifications programme which is relevant, robust and meets all their requirements."

FSB calls for tax leniency

Fri, 30 Apr 2010 03:36:12 GMT

Posted by James Curtis

Sole traders and limited companies working in a range of UK industries could be among those to be encouraged by a new call for tax leniency.

The Federation of Small Businesses (FSB) has urged the next government to make it more difficult for HM Revenue & Customs (HMRC) to close small enterprises down.

FSB national chairman John Walker said: "The FSB urges the next government to look at ways to help small firms stay afloat.

"This could be achieved by making it harder for HMRC to close small businesses down if they are late on tax payments, better access to affordable finance and credit and for government and big business to pay invoices on time to ensure a steady cashflow in the small business community."

The comments follow the publication of the latest Red Flag report from rescue recovery specialist Begbies Traynor, which revealed that more than 160,000 enterprises are facing "significant" or "critical" financial problems.

According to the study, the respondents owe more than £55 billion to creditors and suppliers.

Will new website improve contractor working conditions?

Fri, 30 Apr 2010 01:22:03 GMT

Posted by Alex Turner

Freelance contractors working in the UK could be among those set to benefit from the launch of a new specialist website.

Yesterday (April 29th) saw the unveiling of a new site called WhichLance?.

The online information portal has been created to give businesses and individuals that are looking to outsource projects advice as to which online marketplace represents the "best vehicle" for them to promote their opportunities.

Saif Bonar, the website's founder, said "WhichLance.com is a unique concept which fills an important knowledge gap.

"My own experience of using freelancing websites as both a buyer and provider of services has demonstrated the need for a site like this. It enables people to be more aware of what's available and can help give those new to outsourcing an opportunity to avoid some of the potential pitfalls."

The website works as a comparison service and search facility which separates results according to skills, safety and security features, costs and the number of providers in a given market.

UK tax practice 'will help country avoid Greek fate'

Fri, 30 Apr 2010 12:17:15 GMT

Posted by Alex Turner

Contractors that may be worried about the UK facing the same economic fate as Greece could be among those to have their fears alleviated by recent comments from one expert.

Mark Bolsom, head of the UK trading desk at Travelex, explained that British attitudes toward taxation are very different from those in Greece.

"Unlike the Brits, the Greeks are famously relaxed about paying their taxes," he commented.

"According to the World Bank, one-third of the Greek economy never reaches a tax return, balance sheet or any other form of written record."

The comments follow the news that Greece has had its credit rating reduced; something that Mr Bolsom said is unlikely to happen in the UK.

According to the expert, the UK's economy is on a much safer footing as its independent currency affords it the opportunity to devalue sterling to increase exports.

Commenting on the economic crisis in Greece, Mr Bolsom added: "It is important not to scaremonger or overstate the likelihood that this will happen in the UK."

Recent official figures showed that the UK economy grew by 0.2 per cent in the first quarter of 2010, following a 0.4 per cent expansion in the final three months of 2009.

Contractors set to benefit from improved recruiter loyalty

Fri, 30 Apr 2010 12:08:30 GMT

Posted by James Curtis

Contractors working in the UK could be set to benefit from improvements in the country's recruitment market following the launch of a new guide.

Industry body the Recruitment and Employment and Confederation (REC) has published new research into how recruitment companies can stand out by offering improved client loyalty in the post-recession climate.

Entitled A Guide to Adding Value, the research highlights how recruiters can offer a "bespoke menu" of services to add "real value" to their clients' experience.

Roger Tweedy, the REC's director of research, said: "Our research found that recruitment agencies are generally not as effective as they could be at explaining their added value proposition to clients – even when they have a strong offering.

"It also shows that agencies that get it right can sustain margins that are, on average, two per cent higher than their direct competitors."

The guide is based on research and interviews, which were carried out by the REC in collaboration with the Chartered Institute of Personnel and Development and the Middlesex Business School.

Public sector cuts could create contractor opportunities, says expert

Thu, 29 Apr 2010 04:27:50 GMT

Posted by James Curtis

Contractors with concerns about how they will be affected by a post-election public sector spending reduction could be among those interested in one expert's comments.

According to Stuart Davis, chairman of the Freelancer and Contractor Services Association, a reduction in the number of civil servants could well mean more opportunities for those in the freelance community.

Writing on advice website Contractor UK, the expert said: "One might assume that proposals to cut back spending would badly affect the market.

"Yet if the new government makes savage cuts to the numbers of civil servants, then maybe the convenience of employing freelance contractors to do a lot of the work … could potentially provide new opportunities for freelancers."

The comments come as the build-up to next week's general election gathers steam, with voters scheduled to take to the polls on May 6th.

Mr Davis said the next two weeks will be "fascinating" and urged contractors to think about how individual policies will affect their working lives.

"Whatever your decision on polling day, make sure it is an informed one," he added.

Party leaders Gordon Brown, Nick Clegg and David Cameron are set to outline their policies in a final live TV debate later tonight (April 29th).

UK jobs prospects improve, says report

Thu, 29 Apr 2010 12:10:26 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in a wide range of UK industries could be among those to be encouraged by the findings of a new report.

The latest quarterly study by the Chartered Institute of Personnel and Development (CIPD) has revealed that private sector employers are more optimistic about creating jobs in the second quarter of this year.

However, the survey also highlighted a "stark difference" in the outlook of employers in the private and public sectors.

According to the CIPD, public sector employers are "radically more pessimistic" about job creation than they were three months ago.

Despite the negative view coming from the public sector, the CIPD report gave an overall balance of +5.0 per cent in favour of those that expect to recruit.

This represented the first positive result since the winter of 2008 and showed an improvement on the -5.0 per cent result of the previous quarter.

Gerwyn Davies, CIPD public policy adviser and author of the report, said the growth of jobs and continued economic recovery will "boost private sector workers' prospects as the majority will no longer face potential overwhelming unemployment, pay freezes and lack of promotion".

"It also raises hopes that we may be close to a peak in unemployment," he added.

REC launches dedicated group for office professionals

Thu, 29 Apr 2010 09:58:26 GMT

Posted by James Curtis

Contractors who regularly work in an office environment could be among those to benefit from the creation of a new dedicated business group.

The Recruitment and Employment Confederation (REC) has announced the official launch of its Office Professional sector group.

According to the organisation, the group is the fifth largest under the REC's control and will bring together almost 350 recruitment firms across the UK.

The REC explained that recruiters will now benefit from extensive research into office working.

Jo Edwards, the group's chair, said: "A comprehensive guide into working in the office space has never been produced before.

"This excellent and timely research will be instrumental in assisting agencies to understand the structure of their marketplace and to develop insightful and effective business plans."

The REC also claimed that the creation of the group could not have come at a better time as its latest Report on Jobs revealed that office-based placements are "leading the recruitment industry out of the recession".

Banks ready to approve loans, says BBA

Wed, 28 Apr 2010 03:32:27 GMT

Posted by Alex Turner

Sole traders and limited company contractors in the UK could be among those to be encouraged by recent comments on finances by the British Bankers' Association (BBA).

According to the organisation, Britain's banks are approving four out of every five business loan applications.

The BBA said the figure should encourage enterprises to approach banks as they are "ready to help them benefit from the economic recovery".

Recently, enterprises have been put off applying for loans and overdrafts because of a perceived "credit squeeze", the BBA explained.

Speaking at a recent Institute of Chartered Accountants in England and Wales event, Stephen Pegge, chairman of the BBA's small business panel, said: "Bank lending to small businesses is one of the most important services banks undertake but it's ultimately driven by demand for finance and the quality of applications.

"Naturally when sales fall, the demand falls for finance to fund working capital and fixed asset investment - and affordability is stretched."

The expert said that in the current market, enterprises can also benefit from low interest rates, which mean average interest costs are "less than half" of those paid two years ago.

NHS worst offender for data losses, says ICO

Wed, 28 Apr 2010 12:58:08 GMT

Posted by Alex Turner

IT contractors working within the UK's healthcare sector could be inspired to take greater care with data after the Information Commissioner's Office (ICO) recently named the NHS as the worst data loss offender.

Speaking at the recent Infosecurity Europe conference in London, ICO deputy commissioner David Smith said the NHS is responsible for one-third of all data breaches.

New ICO powers mean contractors could land organisations with fines of up to £500,000 if confidential or sensitive data is lost.

Infosecurity's own publication quoted Mr Smith as saying: "[The] scale of the problem has greatly increased; we've gone from losing a few medical files on a few sheets of paper at a time, to losing millions of files on one disk or USB stick."

However, the deputy commissioner commented that the ICO does not want to hear about all losses but just those that could put people at risk.

"We don't want to know about every breach that happens, just the large-scale breaches where there is potential harm to individuals. In most cases, we'll record the incident but not action it," he added.

Contractors urged to call HMRC over volcanic ash chaos

Wed, 28 Apr 2010 10:10:00 GMT

Posted by James Curtis

Sole traders and limited company contractors that were left stranded in other countries by the recent volcanic ash cloud have been advised to assess their tax affairs.

HM Revenue & Customs (HMRC) has urged enterprises that feel the disruption has left them unable to meet their tax, National Insurance and VAT demands to contact the department as soon as possible.

The call follows the eruption of an Icelandic volcano, which left a huge ash cloud in the air and led to the subsequent grounding of all flights going in and out of the UK for almost one week.

HMRC has stressed that time is of the essence if taxpayers feel they may need support with regard to their payments.

"The sooner you get in touch, the sooner we'll be able to see how we can help. Don't wait until your payment is overdue," the department said.

Contractors who are anticipating difficulties have been advised to contact HMRC's Businesses Payment Support Service as a matter of urgency.

Demand for IT services to 'remain flat'

Tue, 27 Apr 2010 03:12:57 GMT

Posted by James Curtis

Competition among IT contactors in the UK could be fierce this year after a new report claimed demand for IT services is to "remain flat".

A recent study by market intelligence specialist the International Data Corporation (IDC) said that demand for services is likely to be sustained for the remainder of 2010.

However, the long term outlook is more positive, according to IDC, with growth of 2.2 per cent predicted for next year and an annual growth rate of around 3.4 per cent anticipated in western Europe between 2010 and 2014.

Laura Converso, research manager of IDC European software and services, said: ''Demand for projects and outsourcing will pick up towards the second half of 2010, though new technologies and strong price pressure will limit the market's capacity to recover.

"We expect the 'growth agenda' to return slowly, bringing investments in business intelligence and industry-specific solutions, as well as the global rollout of applications, when these solutions can support business growth, towards the end of the year."

The expert said demand in the UK, Germany and the Nordic region is likely to recover at a quicker rate than the rest of Europe as these markets are more likely to outsource IT projects.

'Hidden unemployment' warning issued

Tue, 27 Apr 2010 12:50:46 GMT

Posted by James Curtis

The increase in the number of jobs available in the UK should be "judged carefully", according to a new report.

A recently-published study by totaljobs.com revealed a one per cent increase in the number of jobs posted in the first quarter of 2010.

This could come as good news to a number of sole traders or limited companies working in the UK.

However, the report also revealed that despite the increase, the number of jobs posted is 25 per cent down when compared to the previous year, while the number of people vying for placements has increased by 31 per cent over the same period.

Despite this, Lisette Howlett, a spokesperson for online information portal HireScores.com, said there is evidence of renewed confidence among those searching for new roles.

"Interestingly, there are also a proportion of new job seekers who are considering leaving their current roles to look for alternatives because they are feeling more confident about the economic climate; during the severe downturn people tended to hang onto the jobs they had," she said.

Experts drafted in to address recruitment issues

Tue, 27 Apr 2010 11:28:24 GMT

Posted by Alex Turner

UK contractors who rely on public sector placements could be among those to be encouraged by a recent announcement from the Recruitment and Employment Confederation (REC).

The organisation has named two more experts who will speak at its forthcoming public sector summit.

Dean Shoesmith, the newly-elected president of the Public Sector People Managers' Association, and Jackie Orme, chief executive of the Chartered Institute of Personnel and Development, have been added to the team of high-profile speakers.

The event, which is scheduled to take place on June 8th, forms part of the REC's public sector resourcing campaign, which aims to show recruiters how best to operate in the sector after post-election cuts are made.

Commenting on the appointment of the two speakers, REC chief executive Kevin Green said: "These are two extremely influential and well regarded figures, who bring with them a depth of knowledge and experience.

"Their contribution to the summit will create talking points on how public sector HR practitioners work with their recruitment partners to deliver new resourcing strategies. Again, no-one working in public sector resourcing can afford to miss this event."

IT workers to look for new roles

Mon, 26 Apr 2010 04:37:27 GMT

Posted by James Curtis

IT contractors working as sole traders or limited companies in the UK's financial services sector could be among those feeling confident enough to look for new work.

A recently-published survey from the Hays recruitment group revealed that three-quarters of IT workers are planning to look for a new job within the next 12 months.

Two-thirds of the respondents who said they are to look for new roles said they plan to begin their search within the next three months.

Money appeared to be the key motivating factor, with 41 per cent of IT workers citing this as their main reason for looking to move on.

Sam Corcoran, director of Hays Finance Technology, said: "Many professionals feel as though their salary progression has been compromised by the recession and are no longer willing to stay in their current role when they believe they may be able to receive a higher salary elsewhere."

The expert added that the effect of the recession has also had an impact on workers' decisions with almost a third saying it had created more stress and a quarter saying they now have to work longer hours.

SMBs to increase IT spend, says Microsoft

Mon, 26 Apr 2010 02:45:13 GMT

Posted by Alex Turner

Sole traders and limited companies working in the IT sector in the UK could be among those to benefit from increased spending.

According to a new SMB/Partner Insight report by Microsoft, small to medium-sized businesses (SMBs) are to increase their IT spends by 16 per cent compared to last year.

The report revealed that the majority of SMBs lack "dedicated" IT staff, which could come as good news for a number of contractors within the industry.

Birger Steen, vice president of SMB and distribution for the Worldwide Small and Midmarket Solutions & Partners Group at Microsoft, said smaller firms will look into increasing their IT investments in areas where it "directly benefits their bottom line".

"The most competitive SMBs are investing in IT that will not only help protect and strengthen their business, but prepare them for success when economic conditions improve," he said.

"Technology can buoy smaller businesses through turbulent times - and which technologies SMBs choose can help determine the speed of their return to financial stability."

Dyson to recruit new engineers

Mon, 26 Apr 2010 12:12:00 GMT

Posted by James Curtis

Contractors working in the UK's science and engineering sectors could be among those to be encouraged by the announcement of a new recruitment drive at Dyson.

The company, which revolutionised the vacuum cleaner with its innovative 'bagless' design, has announced that it is looking for 350 engineers to carry out work at its UK headquarters in Malmesbury.

Company owner Sir James Dyson told the Guardian newspaper: "We have always been big recruiters and now we are looking for a range of graduates with the specialist skills to work on new products as well as further development of existing products such as the Airblade [hand-dryer]."

The entrepreneur explained that Dyson had a "very good recession" and will continue to invest money into research and development.

Sir James claimed that after Rolls-Royce, Dyson is the UK's second-largest filer of patents for new inventions and designs.

"We are developing a wide range of new products using microbiology, acoustics and aerodynamics," he added.

Recruiters to receive tendering advice

Mon, 26 Apr 2010 10:11:50 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in Birmingham could be among those to benefit from new advice being given to recruitment firms.

As a result of the anticipation of a fall in the number of public sector contracts that are likely to be available after the election, the Recruitment and Employment Confederation (REC) is to stage a number of tendering process guidance events across the UK.

The next event to be held is to take place at the Birmingham Hippodrome tomorrow (April 27th).

Jeff Brooks, a leading bid manager within the recruitment sector, is to head up the events, which have been designed to give recruiters expert advice on public sector tendering.

"After demystifying the public sector buying process, Jeff will take delegates through the various stages of the tendering [process], from speaking the same language to preparing and structuring responses before showing how to produce a winning executive summary and measure success," the REC explained.

Gartner: Marketing budgets set to increase

Fri, 23 Apr 2010 05:01:12 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the marketing sector could be among those to benefit from an increase in budgets in 2010.

According to a recent report from IT research firm Gartner, high-tech and telecom providers (HTTP) are expecting their marketing budgets to be increased this year.

Figures from the study revealed that 44 per cent of HTTPs expect their budget to be sustained and 41 per cent are anticipating an increase.

By way of contrast, only 15 per cent of HTTPs said their marketing budget is likely to decrease this year.

Laura McLellan, research vice president at Gartner, said: "Marketing has to continue to look at becoming more efficient and cost-effective.

"For some, this means adopting lower-cost alternatives; for others, outsourcing what was once done in-house; for all, it means revisiting how they plan to support the growth of their companies through traditional and new channels, while keeping the core brands strong."

Advice issued over social network advertising

Fri, 23 Apr 2010 02:15:26 GMT

Posted by Alex Turner

Sole traders and limited companies that are looking to boost their contract opportunities with adverts on social media networks could be among those to benefit from the advice of one expert.

According to search engine optimisation and internet marketing specialist bigmouthmedia, Facebook can be an "absolutely rubbish" place to advertise unless people know what they are doing.

Andrew Girdwood, the organisation's head of search, explained that "anything that is geographic-based works particularly well because you can tie that ad into a human interest and target it more personally".

"You need to work out what you want to achieve first and by all means experiment, but don't go in without a goal, and ask yourself if achieving this goal can help other people within the social network community," he added.

The comments follow the publication of a report by Facebook and Neilson, which claimed that social interaction and advocacy can "boost the success" of paid-for advertisements.

Public sector workers under more pressure, says CIPD

Fri, 23 Apr 2010 10:08:53 GMT

Posted by James Curtis

Contractors working within the UK's public sector could be among those feeling an increasing amount of pressure.

The Chartered Institute of Personnel and Development (CIPD) said the threat of job losses and a growing need for public sector employers to do "more with less" is adding to the strain.

Figures from the organisation's latest job satisfaction report show that 18 per cent of public sector workers feel they could lose work due to the economic climate, 39 per cent claim their department is looking to make redundancies and 63 per cent said finding new work would be difficult.

The figures represent significant increases on the responses given this time last year, the CIPD said.

Ben Willmott, CIPD senior public policy adviser, said: "Our survey shows that many public sector employers have already made redundancies and that many more are in the pipeline. Not surprisingly, this is putting more pressure on public servants to do more with less, leading to an increase in pressure at work.

"Public sector leaders need to focus on communicating why change is needed and to consult with staff to find the best ways of making efficiencies without cutting frontline services."

Another recent CIPD report claimed that around 500,000 public sector jobs could be axed over the next five years.

Recruiters to benefit from new discussions

Thu, 22 Apr 2010 03:49:13 GMT

Posted by Alex Turner

Contractors working on the UK's south coast could be set to benefit from improved recruitment services in the area.

Recruitment firms are scheduled to meet up with industry organisation the Recruitment and Employment Confederation (REC) as part of its On the Road tour.

REC chief executive Kevin Green and a panel of experts will be in Southampton, Brighton and Maidstone next week for a series of discussions, which will see recruitment firms benefit from "in-depth" knowledge on employment law, lobbying and business improvement.

The Southampton event, which has been titled Rethink and Rebuild Your Business, has been called to give recruiters a "comprehensive overview of the issues facing the recruitment industry".

It will also show "how the REC is spearheading new products and services to assist members in facing up to these challenges", the REC said.

The Southampton event is set to take place on April 28th, with the Brighton and Maidstone discussions scheduled for the next day.

Unemployment may have peaked, says REC

Thu, 22 Apr 2010 02:51:00 GMT

Posted by James Curtis

Sole traders and limited companies who may have been disheartened by recent unemployment figures could be among those to be encouraged by one industry body's take on the data.

Yesterday (April 21st), the Office for National Statistics revealed that unemployment had increased by 43,000 to 2.5 million in the three months to February 2010.

This represented the highest level of UK unemployment since the three months to December 1994.

However, the Recruitment and Employment Confederation (REC) has said that unemployment may have now peaked and pointed to its own recent research as evidence that confidence among employers and recruiters is on the rise.

Kevin Green, the REC's chief executive, said: "Based on the data available, we predict that unemployment has peaked and that we will see a small reduction in the number of unemployed over the next quarter.

"The outlook for jobs market will then become dependent on how the incoming government implements public sector constraints. We are stressing that whoever wins the election needs to focus on reform of public services rather than on simply slashing jobs."

The REC's latest JobsOutlook survey indicated that 86 per cent of employers expect their use of temporary and contract workers to sustain or increase over the next three months.

CIPD's estimate is excessive, says expert

Wed, 21 Apr 2010 09:58:20 GMT

Posted by James Curtis

Contractors who rely on public sector organisations for work could be among those to be encouraged by the comments of one expert.

Phil Flaxton, chief executive of Work Wise UK, a promoter of smarter business practices, said the Chartered Institute of Personnel and Development's recent estimate that around 500,000 public sector jobs will be lost over the next five years is "excessive".

However, the expert said that jobs will be lost regardless of who is in power after the general election on May 6th.

"My feelings are that is it inevitable that these job cuts will come. I wouldn't agree that it could be up to half a million. I think that is excessive," he said.

Mr Flaxton also said that businesses had reacted in a much more positive manner during the recent recession, compared to economic crises seen in the 1970s, 1980s and early 1990s.

"I think organisations in both the public and private sector have been far more creative this time around in looking at things like flexible working, shorter working weeks in order to keep people employed," he added.

Increase in unemployment

Wed, 21 Apr 2010 09:40:24 GMT

Posted by Alex Turner

Contractors working in a range of industries within the UK could be among those to be disappointed by the latest unemployment figures.

Data released by the Office for National Statistics (ONS) earlier today (April 21st) revealed that the UK employment rate stood at 72.1 per cent in the three months to February 2010.

This represented a decrease of 0.3 per cent on the quarter, the lowest rate seen in the country since October 1996.

According to the study, 13,000 more employees and self-employed workers were working reduced hours due to a lack of opportunities, taking the total number to 1.05 million.

This represents the highest number since records began in 1992.

It was also revealed that employment fell by 30,000 for those working in a part-time or temporary capacity.

The figures are in stark contrast to the latest JobsOutlook report from the Recruitment and Employment Confederation (REC), which showed that 86 per cent of employers expect their use of agency and contract workers to increase or be maintained over the next quarter.

REC: Employer confidence at year high

Wed, 21 Apr 2010 09:19:33 GMT

Posted by James Curtis

The confidence of UK employers with regard to taking on new workers is at the highest point of the year so far, according to a new report.

Figures form the latest JobsOutlook study from the Recruitment and Employment Confederation (REC) have revealed that 86 per cent of employers expect their use of agency and contract workers to increase or be maintained over the next three months.

The report also showed that one in three expect to increase there use of temporary workers over the next 12 months.

This represented an increase on the one in four employers who felt the same way last month.

Roger Tweedy, the REC's director of research, said: "This is the most encouraging sign we have had so far that the jobs market is now gathering momentum led by a higher demand for temporary workers.

"Following last month's slight dip in employer confidence businesses are forging ahead with plans to stabilise or expand their workforces. This fits with the feedback from professional recruiters on the ground, who are reporting increased hiring activity in most sectors."

Potential tax increases lead to busy start of new tax year

Wed, 21 Apr 2010 09:13:07 GMT

Posted Alex Turner

The threat of tax increases after the forthcoming general election has led a number of taxpayers to utilise their maximum ISA allowances, according to one investment manager.

Willis Owen has reported that 2010 has seen its busiest start to a tax year since 2007.

According to the firm, the number of people investing in ISA funds has increased by 24 per cent compared with the start of the 2007-08 tax year and by 14 per cent on the same period in 2008-09.

The report also revealed that one-third of people taking out an ISA since April 5th 2010 have invested the full £10,200 limit.

Alan Easter, Willis Owen's director, said: "Investors know that tax rises are on the way whatever party forms the next government. So those with the cash to invest now are right to secure the full ISA allowance as soon as possible.

"The early birds are also looking for an income from their investments. With returns still relatively low on the high street it is no surprise that savers are looking for an alternative home for their money."

Volcanic ash chaos impacts contractors

Tue, 20 Apr 2010 02:28:09 GMT

Posted by James Curtis

Contractors who are looking to benefit from improved recruitment practices with regards to public sector tendering will be forced to wait for a specialist event.

The Recruitment and Employment Confederation (REC) has been forced to postpone a forthcoming workshop as a result of the flight disruption caused by volcanic ash.

Flights in and out of the UK have been cancelled for the last few days after an Icelandic volcano erupted leaving a cloud of volcanic ash, which can be harmful to jet engines, in the air.

Due to take place in Edinburgh today (April 20th), the event has now been postponed until May 20th.

The workshop was designed to give recruitment firms expert advice on how to succeed in the tendering process for public sector contracts.

Jeff Brooks, a leading bid manager from the recruitment industry is set to head up the event.

"After demystifying the public sector buying process, Jeff will take delegates through the various stages of the tendering, from speaking the same language to preparing and structuring responses before showing how to produce a winning executive summary and measure success," the REC explained.

EDRF investment to create jobs

Tue, 20 Apr 2010 12:19:26 GMT

Posted by James Curtis

Contractors working in Scotland could be among those to benefit from the creation of 700 research jobs in the country.

The jobs are set to be created at research centres across Scotland following a £9.3 million investment from the European Regional Development Fund.

Announced by first minister Alex Salmond, the funding boost includes a £2.6 million support package for Aberdeen University, which will be used to build a centre for life sciences innovation.

"Scotland is a world leader in technology, innovation and enterprise - our scientists have been at the forefront of innovations such as Dolly the sheep, keyhole surgery and renewable energy technologies," said Mr Salmond.

"It's important that our academics and entrepreneurs have access to support, particularly in this challenging economic climate, so that they can stay at the forefront of their fields, realise their potential, seize opportunities, expand, invest and contribute to sustainable economic growth."

Other investments include a £408,137 fund for the University of Edinburgh's Scottish Environmental Technology Network Phase Two and 31 million for the Business & Technology Hub at Edinburgh Napier University.

Well-managed outsourcing vital to public sector employment, says REC

Tue, 20 Apr 2010 10:48:25 GMT

Posted by James Curtis

Well-managed outsourcing will be of paramount importance in the public sector as government spending is cut.

This is the view of the Recruitment and Employment Confederation (REC) following a forecast from the Chartered Institute of Personnel and Development that 500,000 public sector jobs could be cut over the next five years.

The REC said expenditure cuts in the public sector could be counter-balanced by growth in the private sector jobs market.

However, the organisation has called on the government for "deep rooted reform" in order to deliver sustainable employment.

Kevin Green, the REC's chief executive, said: "Effective procurement, well-managed outsourcing models and flexible staffing arrangements will be core elements of new resourcing strategies over the coming years.

"This is where the debate must focus rather than on 'guestimating' numbers of job cuts."

Public sector resourcing is set to be discussed in detail at the REC Public Sector Summit on June 8th.

ARC cancels plans for judicial review

Tue, 20 Apr 2010 09:29:18 GMT

Posted by James Curtis

The planned judicial review into the Agency Workers Regulation (AWR) from the Association of Recruitment Consultancies (ARC) has been cancelled.

Earlier this month, the organisation announced that it was to question the legality of certain clauses in the AWR, which is due to be implemented into UK law in October 2011.

ARC said that it was to pursue a judicial review after taking advice from Queen's Counsel that it had a "strong case".

However, the association has now decided that the three-month time schedule is too "tight" and has therefore decided against the action.

Adrian Marlowe, chair of ARC, said: "Sadly time has defeated us. A judicial review would have kept the issue open and obliged an incoming government to consider the regulations.

"Strategically the timing has always been [the] key because it expired before the election. After nearly two years of discussion and two consultations it is fair to say that the option of further talks had currently reached the end of the line."

Home-based workers urged to amend insurance policies

Mon, 19 Apr 2010 04:38:40 GMT

Posted by Alex Turner

Contractors who operate from their homes could be among those to heed a warning from Insurance firm Swinton.

The firm has said making a simple amendment to a home insurance policy can ensure home-based enterprises are covered for accidents, damage to equipment or loss of data.

Steve Chelton, insurance development manager at Swinton, said: "Working from home is often a cheaper option for many companies, particularly start-up businesses who are keen to avoid hefty office rental costs.

"However, it's vital to inform your insurance provider of any intention to work from home, so they can advise you correctly on what type of insurance you need to ensure you are adequately covered to conduct your business from home."

The expert advised that different insurance levels could be required depending on what type of business is being operated.

If clients are to enter the premises, businesses may be required to hold a public liability insurance policy, he explained.

Demand for IT workers increases in Scotland

Mon, 19 Apr 2010 04:16:05 GMT

Posted by James Curtis

Contractors working in the IT sector in Scotland are more in demand than workers in any other industry, according to new research.

The latest Labour Market Barometer from the Bank of Scotland showed an improvement in the Scottish jobs market for the fourth month in a row.

At 54.2, the report posted its highest result for more than two years.

The study revealed that while six of the eight recruitment sectors posted an increase in demand for temporary and contract workers, IT sector staff remained the most sought-after.

Workers in Engineering and Construction, Secretarial and Clerical, Blue Collar and Executive and Professional roles made up the top five.

Donald MacRae, chief economist at the Bank of Scotland, said: "It's very reassuring to see the recovery in the Scottish labour market continuing.

"Temporary employment growth has accelerated to its fastest rate since August 2007 and the number of vacancies open to applicants looking for long-term employment has risen for the fourth month in a row. This is further evidence that the Scottish economy is recovering from recession."

REC calls for industry to unite over AWR

Mon, 19 Apr 2010 12:05:11 GMT

Posted by James Curtis

The UK's recruitment industry must stay "focused and united" over the coming the week to ensure that the new government understands the issues around implementing the Agency Workers Regulations (AWR).

This is the view of industry body the Recruitment and Employment Confederation (REC), which recently met with government officials and the European Commission to discuss the issues.

Tom Hadley, REC director of external relations, said: "We are moving forwards in terms of understanding the practicalities of implementing equal treatment measures in the UK."

Mr Hadley explained that as the build-up to the election gathers pace, the REC's legal team is preparing a detailed account of "hot topics" that have been highlighted by recruiters in order to influence government guidance.

"There will also be scope for a more substantial review of current interpretations if the Conservatives win the general election," he added.

The AWR is currently scheduled to be implemented into UK law in October 2011.

Contractors 'forced to wait' for party policies

Mon, 19 Apr 2010 10:17:52 GMT

Posted by Alex Turner

Contractors are being kept in the dark over the policies of the major political parties as the forthcoming election draws ever closer.

This is the view of advice site Contractor Calculator, which said despite the launch of election manifestos from the Labour, Conservative and Liberal Democrat Parties and a televised debate featuring all three party leaders, contractors have found out little about what is in store for them.

According to the organisation, the manifestos lacked any "transparency, detail and fresh thinking, especially on economic issues and plans to reduce the public sector deficit.

The devil's in the detail – but there is no detail," the organisation said.

"An underwhelming lack of detail in the Labour and Conservative manifestos leaves little to actually analyse, but each party has made a bid to capture familiar ground, so there are few surprises for contractors to be found."

The party leaders, Gordon Brown, David Cameron and Nick Clegg, are due to take part in another televised debate later this week before voters take to the polling stations on May 6th.

Hays honoured at awards bash

Fri, 16 Apr 2010 04:52:50 GMT

Posted by Alex Turner

Contractors workers could be encouraged to search for new placements through the Hays recruitment group.

The firm, which specialises in recruitment of qualified, professional and skilled workers, was recently given a "prestigious" prize at the Online Recruiter Awards.

Hays was awarded the Best Use Of Online Recruitment By A Recruitment Agency prize for its part in recruiting members for the newly-formed National Tenant Council, part of the National Tenant Voice (NTV) organisation.

Matthew Lewis, director at Hays, said: "We are delighted to have won this prestigious award, which recognises outstanding accomplishments within the industry.

"The NTV campaign was unique in regards to its requirements and the overall quality of the individual candidates was excellent. We are pleased that this award win recognises that we are leading the way with our online recruitment."

For the year ending June 2009 Hays was responsible for placing around 300,000 temporary and contract workers on UK projects.

North-south pay gap closing for IT contractors

Fri, 16 Apr 2010 04:34:16 GMT

Posted by James Curtis

IT contractors working in the north of England could be among those experiencing an increase in earnings.

A new report from ReThink Recruitment has revealed that IT pay rates in the north are increasing three times faster than those in the south.

According to the study, average pay for IT workers in the north increased by six per cent in 2009.

By way of contrast IT workers in London noticed a growth of just two per cent.

ReThink said the rises meant that IT workers can now earn up to £625 per week in northern regions and up to £640 per week in the north-west.

Debbie Davenport, the organisation's director, said: "The north of England has been rapidly developing as a major IT hub over the last few years.

"It is now a serious challenger to traditional IT clusters such as the Thames Valley. High labour and property costs in the south-east are pushing IT vendors to consider alternative locations, the north-west chief among them."

The report said the slower rate of growth in IT pay in London can be attributed in part to the industry's "over-reliance" on financial services.

Outsourcing industry 'set to grow'

Fri, 16 Apr 2010 03:51:46 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK could be among those to benefit from estimated growth in the global outsourcing sector.

A recently-published poll by the International Association of Outsourcing Professionals (IAOP) revealed that 56 per cent of respondents expect to increase their use of outsourcing in the future.

This compares to the 47 per cent of people who held the same opinion last September.

According to the IAOP, the rise can be attributed to businesses recognising the high-value knowledge that outsourcing can provide in addition to cost efficiency.

IAOP chairman Michael Corbett said: "Increasingly, companies are outsourcing to do more than cut costs but to add value, increase business flexibility and prepare for future growth."

The expert also said that businesses choosing to outsource will be better placed to thrive in the post-recession market.

"Companies that are using outsourcing are poised to emerge from the current economic crisis stronger," he added.

Recruitment body calls for greater diversity

Fri, 16 Apr 2010 09:59:56 GMT

Posted by Alex Tuner

Businesses need to embed diversity and inclusion throughout all parts of their organisation, according to one recruitment body.

The Recruitment and Employment Confederation (REC) has said employers could learn from the way LOCOG, the body overlooking recruitment at the Olympic 2012 site, has dealt with contractors and other workers.

At a recent REC meeting Stephen Frost, Head of Diversity and Inclusion at LOCOG explained that almost 200,000 people will be working at the Olympic site.

Sarah Gordon, chair of the Diversity and Inclusion at the REC, said: "Through using a network of diversity champions within the organisation and asking line managers to report to HR on the diversity of their teams each month, LOCOG has shown a positive example from which others can learn.

"Line managers, who ultimately make the recruitment decisions, need to understand why diversity is important."

The meeting also saw the REC launch a new toolkit aimed at helping the recruitment industry play a role in employers overcome their fear of hiring contractors and other workers with disabilities.

PCG launches new freelancer guide

Thu, 15 Apr 2010 12:06:55 GMT

Posted by James Curtis

Sole traders and limited companies working in a number of UK industries could be among those to benefit from the launch of a new interactive guide to freelancing.

The comprehensive guide has been designed by the Professional Contractors Group (PCG) to show businesses how to get "the best value" from freelance workers.

Highlights of the guide include tips on how to draw up a contract, maintain freelancer and client relationships and how to engage the right contractor.

John Brazier, managing director of the PCG, explained that the guide was created after a number of interviews with managers, business owners and contractors highlighted a number of ways of developing effective working relationships.

"The resource is available online, free of charge, and we encourage people to spread the word to their clients or colleagues," he said.

"We would also like to invite feedback from the community via the comments facility on the website."

ARC challenges 'legality' of new regulations

Thu, 15 Apr 2010 10:25:58 GMT

Posted by Alex Turner

The legality of some of the Agency Workers Regulations (AWR) is "questionable", it has been claimed.

A written opinion from leading counsel, obtained by the Association of Recruitment Consultancies (ARC) has advised the organisation to launch a Judicial Review to attempt to prove the rules may have the "opposite effect" to that intended.

The regulations, which will implement the EU Agency Workers Directive to UK law, are designed to offer agency workers the same rights as permanent staff members after 12 weeks in one job.

"We are working in conjunction with various organisations to collate the necessary evidence to show that the measures could harm workers," said the ARC.

"Removal of these provisions would also benefit the agencies at risk. Input from the industry is essential and assistance is sought from as many people as possible who are involved in recruitment supply. Early responses are therefore critical."

The regulations, which were recently laid before parliament, are due to come into effect in October 2011.

New group created for legal sector

Thu, 15 Apr 2010 09:42:52 GMT

Posted by James Curtis

Contractors working in the UK sector could be among those to benefit from the creation of a new recruitment group, which is dedicated to the industry.

The Recruitment and Employment Confederation (REC) unveiled the new group at at recent roundtable discussion at the Law Society.

Sole traders and limited companies will be among those to benefit from new legal advice, specialist lobbying and networking meetings for recruitment firms.

The REC said the group will strive to improve the knowledge, reputation and professionalism of the UK's recruiters.

Scott Pendry, policy advisor to REC Legal and HR, said: "Fundamentally, recruitment into the legal and HR sectors has bounced back from the recession.

"This does not, however, mean that these sectors are in the clear and with this brand new sector group, we want to make sure we are on the front foot during this very productive period of change to help firms get the best people."

Hung parliament not to be feared, says expert

Wed, 14 Apr 2010 04:12:35 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a wide range of UK sectors should not fear a hung parliament after the forthcoming May 6th general election.

According to the Institute for Public Policy Research (IPPR), industries in other countries regularly prosper under what can be described as a hung parliament.

Using the German manufacturing sector as just one example, Tony Dolphin, chief economist at the IPPR, said: "German elections almost always result in what we would call a 'hung parliament' but its manufacturing industry has thrived in a way that we now desire the UK's to."

Mr Dolphin said UK economic growth was now dependent on an increase in investment from private sector organisations, but warned it is important that a balanced approach is taken.

"We are talking about a shift in the balance of growth in the economy at the margin, not a wholesale restructuring of the economy," he added.

Bacs report reveals late payments

Wed, 14 Apr 2010 02:31:08 GMT

Posted by James Curtis

Sole traders and limited companies could be among those who are receiving payments increasingly late.

The latest research from Bacs Payment Schemes has revealed that small enterprises in the UK are now being forced to wait 41 days longer than agreed for invoices to be settled.

According to the report, this represents an increase of 9.5 days since June 2009.

Michael Chambers, managing director of Bacs, said the widespread nature of late payments is having a "real impact" on UK enterprises.

"Small businesses rely on receiving payments on time so that they can maintain cash flow and ensure the business can run on a day-to-day basis," he said.

The report revealed that large companies are the worst culprits with 37 per cent of respondents saying they are the most likely to make a late payment.

Phil McCabe, a spokesperson for the Forum of Private Business, said late payment is one of the biggest challenges facing the country's enterprises.

"Late payment is frequently cited as the number one problem facing our members, eclipsing even taxation and regulation," he added.

Fall in IT demand is surprising, says recruitment expert

Wed, 14 Apr 2010 12:09:11 GMT

Posted by James Curtis

A fall in the number of IT jobs advertised online has come as surprise, according to one recruitment expert.

According to the latest Jobs Index from recruitment organisation the Ashdown Group, the number of IT jobs posted on leading recruitment websites decreased by 5.35 per cent last month.

The research also revealed reductions of 1.48 per cent in marketing and 2.14 per cent in accountancy.

John Lynes, director of the Ashdown Group, said despite the figures, IT is expected to grow as an industry in 2010.

"I was mildly surprised to see a fall in the number of IT jobs during March compared to February, but because February had been so strong with over 14 per cent growth, perhaps I was being over optimistic," he said.

However, the expert said a shortfall in skills could lead to a boost for the IT contract market.

"There has been a recent shortfall in supply of most development skills and this is driving the resurgence of a strong contract market," he explained.

IT contractors set for increased demand

Wed, 14 Apr 2010 10:21:16 GMT

Posted by Alex Turner

IT contactors are set to be more in demand than their permanent counterparts in 2010, according to a new report.

A recently-released study from the recruitment specialist Adecco, said demand for IT contractors, particularly those skilled in Tibco, Bluetooth and RDBMS, is set to increase this year.

However, the group also warned that those with working with Windows 2000, VPN, Coldfusion, Exchange and Prince could be set to a reduction in opportunities.

"It's almost certain that the worst is now behind us and that, after battering down the hatches in 2009, [IT] contractors can look forward to a better 2010 and 2011," said authors of the report.

Adecco also revealed that despite increases in IT salaries in 2009, contractors have seen their earning dip below £40,000 per year.

However, the firm explained that this has more to do with job frequency than earning potential.

"This is not because nearly half of IT contractors earn less than £800 a week, but because many of them have had periods out of work or between contracts," the group added.

Labour to create skilled jobs

Tue, 13 Apr 2010 02:44:33 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a wide range of sectors could be among those to benefit from the creation of new skilled jobs under a Labour government.

The Labour Party has released its manifesto ahead of the forthcoming general elction on May 6th.

Included in the manifesto is a pledge to create one million new skilled jobs by 2015.

Contractors and other workers in the low carbon industry are also set to benefit as Labour has claimed that around 400,000 of the new roles will be "green jobs".

The party has identified low carbon, digital and creative, life science and healthcare and education as sectors that are set for jobs growth.

However, one industry body has claimed that the government's manifesto includes a number of "headline" measures but no detail.

Commenting on the release of the manifesto, the recruitment and Employment Confederation (REC), said: "As ever, the manifesto is a series of headlines and is light on detail.

"The REC awaits the outcome of the election with interest and will ensure that the interests of Britain's £22 billion recruitment industry are taken on board by the incoming government."

Will contractors benefit from increased recognition of recruitment industry's voice?

Tue, 13 Apr 2010 12:30:00 GMT

Posted by Alex Turner

Contractors in the UK could be among those to benefit from the increased recognition of the recruitment industry's voice on a number of issues.

This is the view of industry body the Recruitment and Employment Confederation (REC), which said a rise in its media exposure has led to increased recognition of the industry's views on jobs, public sector resourcing and business taxation.

According to the REC, it has been quoted in more than 300 press articles and appeared on more than 20 television programmes in the first three months of this year, building on the "record levels" seen in 2009.

Alison Henderson, the REC's press manager, said: "The REC's voice on employment and labour market issues continues to amplify and we have made important inroads into previously untapped media outlets.

"In the period both before and after the election, the aim is to use increasing media presence to drive recognition for the role and contribution of the UK recruitment industry."

Report reveals signs of improved jobs market

Tue, 13 Apr 2010 12:07:37 GMT

Posted by Alex Turner

Contractors working across a wide range of industries in the UK could be among those to notice an increased demand for their services.

The latest monthly index from online recruitment specialist Monster has revealed a six per cent rise in demand for marketing, press relations and media professionals in March.

At the same time, demand for professionals in the UK healthcare sector increased by five per cent, according to the organisation.

Julian Acquari, managing director at Monster UK and Ireland, said: "The March Index findings show that UK online recruitment activity continues to trend higher, with the annual growth rate hitting 15 per cent.

"We are seeing encouraging signs in online hiring trends for hard-hit sectors like marketing, while arts and healthcare have seen improvements both on the month and the year."

However, despite the encouraging signs of the report, Monster warned that unemployment and job creation trends remain "tenuous" while the economic outlook for the country is still uncertain.

IT salaries on the rise

Tue, 13 Apr 2010 10:20:54 GMT

Posted by James Curtis

Contractors working within the IT industry could be among those to notice an increase in pay.

A recently-published report from IT recruitment specialist CV Screen has revealed that IT professionals have seen their income increase by two per cent over the last 12 months.

According to the study, average earnings for those in the IT sector now stand at £36,818 per year.

The results of the research, coupled with recent industry forecasts, point to growing confidence within the sector.

A recent report from IT analysis and research organisation Gartner predicted that spending on IT services is set to increase by 5.7 per cent to $821 billion (£535 billion) in 2010.

CV Screen's Matthew Iveson said: "It is clear that companies are more confident than they were 12 months ago and are actively recruiting within their IT departments, particularly in eCommerce where we are seeing continued high demand as companies look to boost their web presence."

Job search culture has shifted, says expert

Mon, 12 Apr 2010 04:16:22 GMT

Posted by Alex Turner

UK contractors who are looking for new business could be among those to benefit from new advice issued by one career guidance website.

According to careerplan4.me, the impact of the global recession and the rise of the internet have led to a "cultural shift" in the way people search for jobs.

The firm claimed that 80 per cent of jobs that are secured in today's market are gained through networking.

As such, the firm has issued a new list of tips on how to go about procuring new contracts and looking for new jobs.

The organisation has urged people not to fear social networks and to use them on a daily basis as they are a "useful and easy" way of being exposed to the right people.

Job seekers have also been advised to protect their "personal brands" as prospective employers will search for them on the internet.

Tor MacLeod, co-founder of careerplan4.me, said: "The good news is that today's rules empower you to take control of your career planning like never before.

"Yes, use the right recruitment agencies, yes, look at job ads, but understand the secrets of a job search and work them. Keep every avenue open."

Engineering firms urged to integrate freelance workers

Mon, 12 Apr 2010 12:40:02 GMT

Posted by James Curtis

Contractors working in the UK's engineering sector could be among those to benefit from new calls from one industry body.

The professional Contractors Group (PCG) has called on engineering firms to integrate freelance workers effectively.

According to the organisation, this will give companies a better chance of thriving in the current business climate.

In order to further promote the work of freelancers, the PCG has developed an online guide aimed at employers to show how they can maintain successful working relationships with contactors.

John Brazier, managing director of PCG, said: "The UK boasts many talented engineers who are offering flexibility to companies; helping them manage risk and unlock innovation and talent within their business.

"I believe that trend is set to grow as Britain will increasingly rely on freelance engineers to get the job done."

Mr Brazier said the new guide will help businesses get an edge on their competitors as while other firms contemplate projects, they could have a team of freelancers "delivering it".

Global IT spend 'set to grow'

Mon, 12 Apr 2010 10:01:38 GMT

Posted by James Curtis

Contractors working as limited companies or sole traders in the UK's IT sector could be among those to benefit from an increase in IT spending this year.

A recently-published report from IT research and advice firm Gartner has estimated that global IT spending will reach $3.4 trillion (£2.2 trillion) this year.

This would represent a 5.3 per cent increase on the $3.2 trillion spent in 2009.

According to the firm, strong sales in the fourth quarter of 2009 and an "unseasonably robust" hardware supply chain in the early part of this year will see a growth in IT spending in 2010.

George Shiffler, research director at Gartner, said: "Consumer PC spending will contribute nearly four percentage points of hardware spending growth in 2010, powered by strong consumer spending on mobile PCs.

"Additionally, professional PC spending will contribute just over one percentage point of spending growth in 2010 as organisations begin their migration to Windows 7 toward the end of the year."

Cameron told to slash public payroll by £2bn

Fri, 09 Apr 2010 04:17:33 GMT

Posted by James Curtis

Contractors in the UK who regularly work within the public sector could be among those set to be affected by £2 billion worth of public sector payroll cuts under a Conservative government.

Sir Peter Gershon, the former government adviser who provided the "blueprint" for the Tories efficiency plans, has told David Cameron this is how much he needs to cut from public sector pay within a year of the election, the Financial Times reported.

In an interview with the newspaper, Sir Peter claimed greater control over public sector recruitment, such as reducing the use of agency and contract workers, could save up to £2 billion by 2011.

The "driving down" of contractor use was highlighted as one example of cuts expected to yield around £12 billion in savings.

Sir Peter also outlined cuts in IT spending, contract renegotiation with goods and services suppliers and a reduction in consultancy fees and staff expenses, which the expert described as "discretionary spending".

The possibility of a reduction in public sector use of contractors could be met with disapproval from a number of trade organisations, particularly the Recruitment and Employment Confederation, which has consistently called for a "deep rooted" reform of public sector spending rather than a "short-term" fix.

'Sharp' increase in demand for IT workers

Fri, 09 Apr 2010 03:10:47 GMT

Posted by James Curtis

Contractors working within the UK's IT sector could be among those to benefit from an increase in opportunities this year.

According to McGregor Boyall, a specialist in IT recruitment, the availability of IT jobs in the financial services sector saw a "sharp increase" in the early part of 2010.

Writing for Contractor UK's Expert Answer series, Laurie Boyall, the firm's managing director, said: "We saw a steady increase in hiring requirements from the beginning of 2009 but this upward trend accelerated even more significantly during this year's first two months.

"It is perhaps too early to tell whether this trend is anything more than a normal New Year spike but the increase is certainly more significant than anything we have seen in the last two years."

The comments echo the findings of the latest Report on Jobs from the Recruitment and Employment Confederation, which showed that "high-end" sectors such as IT and engineering continue to show strong growth.

Increased trade organisation membership for recruiters

Fri, 09 Apr 2010 11:59:37 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK could be among those to benefit from the growing number of recruitment firms joining a trade body.

The Recruitment and Employment Confederation (REC), has revealed that a record number of organisations signed up for membership in the first quarter of this year.

According to the organisation, 210 recruitment organisations joined the REC over the last three months.

The figure represents a 76.5 per cent increase on the 119 firms that joined in the first quarter of 2009 and follows on from the 750 new members joining last year.

REC chief executive Kevin Green said: "It is extremely encouraging to see that businesses are placing a high value on joining their trade body.

"We continue to listen to the concerns of recruiters through sector group meetings and REC 'On the Road' events. Growing the membership means enhancing our collective voice which can only be a good thing for the industry – especially in an election year."

The REC has been vocal in raising a number of issues that could affect contractors including the Agency Workers Regulations and IR35 tax rules.

Advertising market set for growth, expert claims

Thu, 08 Apr 2010 04:42:25 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the advertising industry could be among those interested in new expectations of growth for the sector.

A recently-published report from media services agency ZenithOptimedia has revealed that the market is set to grow by 2.2 per cent over the next three years.

The figure shows an increase in confidence in the industry after the organisation originally estimated growth of just 0.9 per cent.

Jonathan Barnard, a spokesperson for ZenithOptimedia, expressed caution as the market is heavily linked with the state of the economy but claimed the current signs are positive.

"If there were to be a double dip recession we would have to call these figures into question because the ad industry is directly tied to the economy but what this forecast indicates is that the industry is experiencing a recovery and it seems likely that the recovery will continue," he commented.

Contractors 'could see more IT outsourcing opportunities'

Thu, 08 Apr 2010 01:51:10 GMT

Posted by James Curtis

Contractors working in the UK's IT sector could start to notice more placement opportunities as companies look to increase their outsourcing.

This is the view of IT consultancy Ovum, which said that a number of businesses are now developing long-term strategies as the economy begins to settle.

Patrick O'Brien, a senior analyst at the firm, said: "No one knows exactly how things are going to work out, whether there's going to be a double-dip recession or whether we're going to have a gradual recovery, but I think there's a little bit more confidence and a little bit more visibility with businesses.

"That enables them to have a bit more confidence in making strategic decisions around outsourcing."

The comments follow the publication of a report from managed services company Hibernia Evros Technology Group, which promoted the benefits of outsourcing as the speed in which technology changes can make it difficult for internal IT departments to keep up.

Recruiters to discuss technical challenges

Thu, 08 Apr 2010 12:19:24 GMT

Posted by Alex Turner

Sole traders and limited companies working in the UK's engineering and technical sector could be among those to benefit from scheduled meetings to discuss the impact of challenges facing the industry.

The Recruitment and Employment Confederation (REC) is set to host a panel discussion with recruiters in order to assess the impact that the Agency Workers Regulations (AWR) will have on the sector.

Skills shortages, liabilities in client terms and conditions and travel dispensations are also set to be discussed.

Philip Higgins, chair of REC Engineering & Technical, said: "Our sector is diverse and is undergoing changes in the way we operate. On the client side, we are increasingly seeing contracts which put greater pressures on us to accept more liabilities, while on the candidate side it is becoming more and more difficult to find the right skills.

"With the AWR looming on the horizon, we need to come together and discuss these issues, how they will impact on our sector and what we can do together to solve them."

The AWR, which were laid before parliament in January this year, are set to come into effect on October 1st 2011.

Top rate tax could be bad for UK, says IoD

Thu, 08 Apr 2010 10:58:07 GMT

Posted by James Curtis

The UK's new 50p tax for workers on high incomes could have a negative effect on the country's economy.

This is the view of the Institute of Directors (IoD), which said the move will raise "little or no tax" for the government.

Earlier this week the measure came into effect, meaning those earning more than £150,000 per year are subject to the top rate 50 per cent tax.

However, the IoD claimed that the higher rate is likely to encourage high-earners to relocate to more competitive tax jurisdictions and could make the UK less attractive for international business operations.

Richard Baron, head of taxation at the IoD, said: "The superficial attraction of 50p rate is that it will yield some new revenue from higher earners which can be used to tackle the fiscal deficit.

"But once we dig deeper, we can see the policy is foolish. It will not help the people one would expect on lower incomes, but will create a further deterrent to new international capital coming to the UK, thereby impoverishing all of us indirectly over time."

BCC: Double dip avoided but recovery remains weak

Wed, 07 Apr 2010 03:02:35 GMT

Posted by James Curtis

Contractors working in the UK could be among those interested in a new report which shows the UK avoided a double dip recession, with economic growth recorded in the first quarter of 2010.

The data, published by the British Chambers of Commerce (BCC), revealed that the country's upturn is "still on course".

However, the BCC warned that the recovery remains "weak" and a "serous risk" of an economic setback remains.

According to the report, although not at pre-recession levels, business confidence is currently "firmly in positive territory".

David Frost, the organisation's director general, said: "Businesses are showing resilience despite difficult and uncertain trading conditions. Confidence is building, and the government must nurture this with well-thought out policies that support business growth and job creation."

Mr Frost called on whoever is in power after the general election to avoid additional business taxes, which he said would "stifle" the UK's recovery.

It was announced yesterday (April 6th) that the general election will be held on May 6th.

Election date spurs recruitment group's campaign efforts

Wed, 07 Apr 2010 12:19:31 GMT

Posted by Alex Turner

The announcement that the general election will take place on May 6th has encouraged one recruitment industry body to renew its campaign efforts.

On hearing the news, the Recruitment and Employment Confederation (REC) has called on recruitment firms to "make a difference" by taking the organisation's manifesto messages forward in the build up to the election.

This could have a positive effect on the jobs market, which in turn could have an impact on placement opportunities for sole traders and limited companies.

The REC's manifesto calls for the creation of "the right economic climate", the removal of barriers to growth and the delivery of jobs and opportunities.

Another key focus of the campaign is the removal of planned increases to national Insurance contributions.

REC chief executive Kevin Green said: "One of the objectives in developing the manifesto is to enable recruiters to play an active role by helping to drive the industry's own campaign trail.

"The run-up to the general election is an important time for the industry to come together and ensure that our voice is at the forefront of some of the major labour market and economic debates."

Jobs report shows growth in temporary billings

Wed, 07 Apr 2010 10:05:21 GMT

Posted by James Curtis

Growth in the number of temporary and contract workers finding placements in the UK demonstrates the "vital flexibility" such workers provide.

This is the view of the Recruitment and Employment Confederation (REC) following the results of its latest Report on Jobs.

According to the research, growth in short-term appointments increased to the strongest level for 34 months in March.

The REC said the drive can be attributed to the fastest increase in demand for temporary and contract workers, such as sole traders and limited companies, since January 2008.

Kevin Green, the REC's chief executive said: "A rise in both temporary and contract work at the sharpest rate for nearly three years shows how they continue to provide vital flexibility for UK businesses."

However, Mr Green also voiced concerns about forthcoming public sector spending cuts, saying this could yet have an impact on the jobs market.

"Deep-rooted reforms and innovative approaches to public sector resourcing will be needed in order to maintain frontline services," he added.

Higher earners face bigger tax bills

Wed, 07 Apr 2010 09:26:41 GMT

Posted by James Curtis

High earning contractors working in the UK could be among those facing larger tax bills under new tax rules which came into effect yesterday (April 6th).

Under the new rules, high earners will pay 50p in tax for every £1 they earn above a certain threshold.

The ruling will see around 300,000 people who earn more than £150,000 per year pay the 50 per cent tax.

It comes as part of what some experts are calling a "double pronged attack" on the wealthy, as a tax-free earnings allowance has also been scrapped for high earners.

Now people earning in excess of £100,000 per year will pay tax on every single pound earned.

By way of contrast, the previous ruling meant that the first £6,475 earned was tax free.

The increased taxation follows the news that chancellor of the exchequer Alistair Darling's one-off 50 per cent bonus tax yielded £2 billion, much more than the government first anticipated.

Employers turn to temps to bring in talent quickly

Wed, 07 Apr 2010 08:59:45 GMT

Posted by Alex Turner

Employers in the UK are increasingly turning to temporary and contract workers in order to bring in talent quickly, according to a new report.

The latest Professional Talent Spotlight survey by recruitment specialists Badenoch & Clark revealed that a number of firms are looking at temporary and contract workers as they begin recruiting again.

Neil Wilson, the firm's managing director, said: "As employers begin the process of recruiting again after a period of recruitment freezes, many are finding temp to perm arrangements a convenient way of bringing in resource quickly while also taking a long-term view."

The report also revealed good news for contractors working in the legal sector as a number of law firms are beginning new recruitment drives.

Mr Wilson added: "The pick up in banking and financial services recruitment is being reflected in the legal profession as more and more law firms are defrosting recruitment budgets and reviewing pay structures."

Freelancers vital to BBC, says BECTU

Tue, 06 Apr 2010 02:25:10 GMT

Posted by James Curtis

Freelance workers are "vital" to the continued success of the BBC, it has been claimed.

According to BECTU, freelance workers represent a "large and complex" group within the broadcaster's workforce.

The comments come as the two organisations announced the signing of a Memorandum of Understanding, which is aimed at creating "greater transparency" in the way the BBC engages its freelance workers.

BECTU general secretary, Gerry Morrissey, said: "We are very pleased to have arrived at this agreement with the BBC, which is set to deliver much needed transparency on the BBC's approach to its freelance workforce.

"The agreement also recognises the importance of the freelance community to the BBC's output."

Under the agreement, a standardised approach to pay, hours and holidays will now be put in place, affecting freelancers working in the Vision Productions and Drama departments.

Discussion will also take place in regard to freelancers working in the fields of camera, sound, lighting, costume and hair and make-up at the corporation.

CIOT criticises government's Finance Bill timing

Tue, 06 Apr 2010 11:32:56 GMT

Posted by James Curtis

The timing of the government's publication of its Finance Bill means the UK could suffer from unexpected loopholes and an overly complex tax system.

This is the view of the Chartered Institute of Taxation (CIOT), which said the Bill should not have been published so close to the end of parliament as the proposals in the document will not receive sufficient parliamentary scrutiny.

John Whiting, CIOT tax policy director, said: "We are worried that many of these clauses - including three new taxes - will be rushed into law with no meaningful debate. This is not a recipe for good tax law.

"There are many complex, technical measures in the Bill. Many have been consulted on but even sensible ideas benefit from going through proper parliamentary scrutiny to make sure there are no loopholes or unintended consequences."

Mr Whiting called on the government to delay the implementation of its proposals and cited the restriction on pension tax relief as an example, as this will be "rushed through" despite not coming into effect until April 2011.

Government creates new Technician Council

Tue, 06 Apr 2010 09:50:17 GMT

Posted by Alex Turner

Contractors working in a wide range of sectors in the UK could be among those to benefit from the creation of a government Technician Council.

The body, which will be chaired by National Grid chief executive Steve Holliday, will be committed to ensuring the UK has the right engineering, scientific research and manufacturing skills to secure future economic growth for the country.

Business, innovation and skills minister Pat McFadden said the council will also serve to promote the "immense value" that technicians bring to the UK economy.

Mr Holliday said: "As the chief executive of National Grid I am only too aware of how important technicians are to the success of our business.

"I am delighted to have been asked to chair the Technician Council. I look forward to working with other key stakeholders to build a framework for a modern class of technician to ensure that this critical role in the workplace is more widely recognised and respected."

REC to chair agency worker conference

Thu, 01 Apr 2010 04:51:16 GMT

Posted by Alex Turner

Contractors working in a wide range of sectors could be among those to benefit from improvements in the handling of temporary workers as a specialist conference is to be held later this month.

The Managing a Temporary Workforce conference is to be held in central London on April 29th and is to be chaired by the Recruitment and Employment Confederation (REC).

At the conference, which has been organised by Symposium Events, attendees will discuss the legal and practical impact of agency worker regulations that are due to take effect in October this year.

Tom Hadley, the REC's director of external relations, said: "The conference will provide a further insight into how employers are approaching the new regulations and the support they are looking for from their recruitment providers.

"It will also provide a unique platform for highlighting the industry's perspective and the added value that agencies can deliver in preparing for the changes."

PCG claims victory over IR35 commitment

Thu, 01 Apr 2010 02:25:27 GMT

Posted by Alex Turner

The Professional Contractors Group (PCG) has claimed a lobbying victory after the Conservative Party's "landmark announcement" on IR35.

Shadow business minister Mark Prisk has vowed that under a Tory government the tax ruling would be reviewed as part of a major shake up of business taxation.

PCG chairman Chris Bryce said the announcement follows a series of "strong representations" made by the organisation to Mr Prisk.

"This shows that the Conservative Party has been listening to and understanding the messages that PCG has given them," he said.

"We believe this solution has the potential to lead to a fairer and more workable tax regime for the vast majority of those who work freelance."

However, the chairman insisted that the PCG will not become "complacent" and will continue to press for the removal of the "grossly unfair and badly drafted piece of legislation" regardless of which party is in power after the next election.

REC backs Tory IR35 plans

Thu, 01 Apr 2010 02:01:18 GMT

Posted by James Curtis

The Recruitment and Employment Confederation (REC) has come out in support of the Conservative Party's commitment to review business taxation including IR35.

Anne Fairweather, the REC's head of public policy, said a comprehensive review of the UK's tax regime would be a "welcome move".

"Self employment, especially for those with specific skills, adds vital flexibility to our labour market," she said.

"All political parties recognise that greater levels of self employment will be a route out of unemployment for many. In order to grow our economy out of recession we need the right tax environment for innovation and entrepreneurship."

The comments follow an announcement from shadow business minister Mark Prisk that a Conservative government would look to simplify the "overly-complex, uncertain and often unfair" tax regime that Labour has introduced.

Ms Fairweather added that the REC will be consulting its members to discuss any developments in the UK's tax environment after the forthcoming general election, in order for recruiters to continue matching self-employed workers with companies looking to bring in "specialist expertise".

IR35 is overly complex and unfair, says shadow business minister

Thu, 01 Apr 2010 01:21:45 GMT

Posted by James Curtis

Shadow business minister Mark Prisk has announced that a Conservative government would carry out a "fundamental review" of business taxation, including IR35.

According to Mr Prisk, freelancers and self employed contractors have had to put up with "constant meddling" of tax rules over the last 13 years under Labour.

The announcement could come as good news to a number of contractors as the shadow minister said IR35 has cost UK enterprises £73 million over the last decade but has "barley" increased the treasury's revenue.

"This is why a Conservative government would mandate the independent Office of Tax Simplification to undertake a fundamental review of current arrangements with the aim of providing a clearer, lasting and fairer tax regime," he said.

"Small businesses cannot afford five more years of Gordon Brown … Only the Conservatives have the energy and the ideas to get Britain working by boosting enterprise."

Osborne gambling with UK economy, says CIPD

Wed, 31 Mar 2010 05:45:09 GMT

Posted by Alex Turner

Shadow chancellor George Osborne is taking a gamble on growth and employment with his spending proposals.

This is the view of the Chartered Institute of Personnel and Development (CIPD), following Mr Osborne's announcement that a Conservative government would cut £6 billion from Labour's spending plans.

The CIPD welcomed the shadow chancellors plans to scrap the government's planned one per cent increase in National Insurance contributions but said the spending cuts could be ill-advised in a bid to reduce the fiscal deficit.

Dr John Philpott, chief economic adviser at the CIPD, said: "George Osborne's proposal to cut much of the government's hike in employer's National Insurance contributions shows that he has wisely listened to British business. The move will be good for jobs.

"However, the shadow chancellor is perhaps less wise in proposing to cut £6 billion from Labour's spending plans in 2010-11 … Mr Osborne is in this respect clearly taking a gamble on growth and employment."

Public sector IT demand declining, claims expert

Wed, 31 Mar 2010 05:44:25 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the British IT sector could be set to notice a decline in public sector opportunities, it has been claimed.

In an interview with Recruiter magazine, Keith Butler, managing director of NES IT, a leading IT recruiter, said demand is decreasing as departments turn their attention to cost cutting.

"The focus is on cost-cutting, therefore demand for contractors is lower than is has been in the past," he told the news provider.

"With clients emphasising cost, there's increased pressure on rates and agency margins and more justification is required (often at a more senior level) for each appointment or contract extension."

However, Mr Butler claimed the decrease is currently being balanced by a healthy demand for contractors in the private sector, particularly in the banking and financial service area.

Contractors could however be encouraged by the views of another expert who recently claimed public sector opportunities will remain despite spending cuts.

Writing for Contractor UK, public sector analyst Georgina O'Toole, said IT contracts will be created as some public sector bodies look to make improvements in operational efficiencies.

HMRC urges preparation for VAT changes

Wed, 31 Mar 2010 02:44:35 GMT

Posted by Alex Turner

High-earning contractors in the UK could be among those to heed a warning by HM Revenue & Customs (HMRC) in regard to VAT changes.

The department has issued a statement urging contractors and businesses to be prepared for the changes, which come into effect on April 1st.

Under the new system, traders with an annual turnover of more than £100,000 (excluding VAT), will be obliged to file their VAT returns using HMRC's online service.

The changes also mean that all businesses and traders registering for VAT must do so online and all payments must be made electronically.

HMRC warned that anyone issuing VAT-included invoices without registering could face a VAT wrongdoing penalty charge.

Stephen Banyard, director of HMRC's Business Customer Unit, said: "If you're a VAT-registered trader or an employer, make sure you're up to speed with all the VAT and PAYE changes coming in this spring.

"If you're well prepared for the changes, you'll help avoid a last-minute rush when the new measures take effect."

Brookson Managing Director Martin Hesketh said: "Brookson encourage online filing for all our customers even if they fall below the new £100,000 filing turnover limit. It is one less burden for businesses to worry about as Brookson can submit the VAT returns on the businesses behalf, all the business then has to worry about is making the payment to HMRC electronically and HMRC will give them an extra seven days to do this.

"It also ensures that the VAT return is received at HMRC in a more timely and efficient manner, as there is no risk of returns getting lost in the post which could incur unnecessary penalties for the customer."

REC launches new advocacy programme

Wed, 31 Mar 2010 11:56:41 GMT

Posted by Alex Turner

Contractors working in the UK could be among those to benefit from improvements in the recruitment sector following recent moves by one industry body.

The Recruitment and Employment Confederation (REC), is calling on its corporate members to adopt its new Institute of Recruitment Professionals (IRP) Advocacy Programme.

Firms joining the programme will benefit from information on how to minimise client risk, regular employment law updates, knowledge on recruitment issues and how to deploy best practice.

Anita Holbrow, the REC's director of marketing and member representation, said: "In an increasingly competitive market, it is vital that every recruitment business has a set of tools at its disposal that will set it apart both as an employer of choice and as a must-have business partner for clients.

"The IRP Advocacy Programme, which is free to all Corporate Members, is specifically designed to do just this."

Recruiters taking the REC up on its offer will also benefit from continuous professional development and IRP social networks discussing new relevant skills.

Billions 'wasted' chasing late payments

Wed, 31 Mar 2010 09:40:05 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in a wide range of sectors could be among those losing money as they chase late payments.

According to a new report from Bibby Financial Services, 35 per cent of enterprises are waiting longer for customers to settle bills than 12 months ago.

The study also revealed that 336,000 outfits spend more than three days per month chasing payments, while 48,000 chase invoices more than 11 times.

According to Bibby, chasing the late payments costs businesses almost £2 billion each year.

Edward Rimmer, Bibby Financial Services' UK chief executive, said: "Across this nation, businesses are fighting for survival with sustaining a healthy cash flow one of the biggest challenges.

"We need to support one another and do everything possible not to succumb to the easy route of late payment as it can become a vicious circle which halts the purchasing cycle and, ultimately, can disrupt the supply chain, not to mention the impact on the goodwill and trust of other customers and suppliers."

Recruiters examine impact of new technology

Tue, 30 Mar 2010 12:18:38 GMT

Posted by James Curtis

Contractors working in the UK could be among those to benefit from a focus on new technologies among the country's recruiters.

Industry body the Recruitment and Employment Confederation (REC) has published a new report examining how a range of new technologies will impact the recruitment sector and the services it provides.

The REC has now identified eight key trends including cloud computing, data memory, data security, green IT and the growth of social networks.

Recruiters can now assess the implications that such technological advancements will have on their operations.

Jeff Brooks, chair of the REC's Technology Sector Group, said: "This new guide provides us with a launch pad for discussion and debate on how the recruitment industry will be affected by the rapid, unstoppable march of the new technologies.

"Not only does it highlight many of the new technological platforms, it also helps us pinpoint some of the crucial issues that could influence how the industry operates in the future, the impact on the jobs market and the behaviours required by recruiters."

Technology could be set to play an increasingly important role in business after figures taken from a recent report by research firm InSites Consulting revealed that 940 million people are now signed up to social media networks.

Hiscox: Entrepreneurs used personal savings to get through recession

Tue, 30 Mar 2010 09:52:26 GMT

Posted by James Curtis

Britain's entrepreneurs turned to their own savings to keep their enterprises afloat during the recession, according to new research.

The tight financial climate led to a "piggybank recession" with UK entrepreneurs putting £16 billion of their own money into their business over the last 12 months, according to insurance firm Hiscox.

New research published by the organisation has revealed that 20 per cent of respondents invested an average of £17,030 into their operation, while 34 per cent "slashed" their own salary.

Commenting on the actions of the entrepreneurs, Alan Thomas, a small business expert at Hiscox, said: "They have made enormous sacrifices and taken significant personal and financial risks to pull their businesses through the last two years.

"Their positive outlook for the year ahead is testament to the resilience of UK entrepreneurs and with 25 per cent planning to expand in 2010, they are doing their bit to help lead the UK's recovery."

The report also showed that the working week had increased by 12.5 hours for more than one-third of the survey's respondents.

Opportunities for IT contractors 'despite cutbacks'

Mon, 29 Mar 2010 03:59:50 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK's IT sector could still find public sector opportunities despite spending cutbacks.

This is the view of Georgina O'Toole, public sector analyst at research firm TechMarketView.

Writing for Contractor UK's Expert Answer series, Ms O'Toole said opportunities will still exist in health, social care and education, which she claimed will be the fastest growing UK public sectors for software and IT services, as the government has vowed to protect investment into frontline services within these departments.

"Thanks to the Budget, there are also opportunities to help 'Arms Length Bodies' improve operational efficiencies," the expert said.

"The Budget Report specifically identifies the need for the UK Border Agency to achieve operational efficiencies by improving its case management systems."

According to Ms O'Toole, changes within the HM Courts Service and the Tribunals Agency could see the organisations looking to "take a fresh look at their ICT strategies".

She added that the opportunities could still arise despite the government planning on reducing its IT spend by £500 million.

UK gaming sector support could have 'significant impact'

Mon, 29 Mar 2010 11:44:58 GMT

Posted by James Curtis

Contractors working in the UK computer gaming sector could be among those to benefit from new government support.

The National Endowment for Science, Technology and the Arts (Nesta) believes enterprises in the sector could be set to receive a 20 per cent tax rebate on productions which are "culturally British".

The comment comes after Alistair Darling announced that the gaming sector is to receive similar support to that offered to the UK film industry.

However, Juan Mateos-Garcia, a creative industries researcher at Nesta, said the impact of any measures will depend on the finer details once they are announced.

"We believe it could have a significant impact, but it's in the details – it depends on how it is implemented and what the process for it is and how this criteria of it being culturally British is applied," he said.

During the last Budget speech before the general election, Mr Darling stated a commitment to ensuring British talent remains in the UK to drive the "highly successful and growing" gaming industry.

UK and Belize to share tax information

Mon, 29 Mar 2010 09:59:46 GMT

Posted by James Curtis

Avoiding the UK's tax regime is set to become more difficult after the government announced a new agreement with Belize.

Under the terms of the agreement, the two countries will now exchange tax information to enable the enforcement of domestic tax laws to relevant cases.

Commenting on the agreement, which was unveiled during the recent Budget announcement, financial secretary Stephen Timms, said: "Information exchange is a vital tool in ensuring that governments resource for the essential public services on which we all depend.

"I very much welcome the fact that Belize has joined the growing number of jurisdictions making good on their commitments to apply high standards of transparency and exchange of information in tax matters."

The agreement, which will ensure information is shared to Organisation for Economic Co-operation and Development standards, was signed by Mr Timms and High Commissioner for Belize in London, Her Excellency Kamela Palma.

UK tax information agreements are now in place with 16 other areas including Jersey, Guernsey, the Isle of Man and Bermuda.

PCG: Budget offered little for freelancers to take away

Fri, 26 Mar 2010 01:26:41 GMT

Posted by James Curtis

There was little for freelance workers to take away from this week's Budget, it has been claimed.

The Professional Contractors Group claimed the "real Budget" will not be announced until after the election and described Alistair Darling's recent announcement as nothing more then a "political speech".

John Brazier, the organisation's managing director, said: "It was much ado about nothing. In reality it was the 'pre-Budget' Budget.

"Frankly, the freelance community has little to take away from the 'red book', as we expected."

Anne Redston, a visiting professor of taxation at King's College London, is analysing the Budget on behalf of the PCG and said there was some promise in the big picture painted by the chancellor but "no detail".

"The holding of capital gains tax to 18 per cent is good news and increasing the number of public contracts awarded to small and medium-sized business to 15 per cent of all contracts is probably helpful," she added.

Budget measures for entrepreneurs are too vague, says expert

Fri, 26 Mar 2010 11:15:45 GMT

Posted by James Curtis

Support measures for entrepreneurs and small business enterprises, announced in the Budget earlier this week, are "too vague", it has been claimed.

During his speech, chancellor of the exchequer Alistair Darling announced an agreement with the RBS and Lloyds banking group that will provide £94 billion of new business loans.

Mr Darling also set out details of UK Finance for Growth, a new body which has been targeted with streamlining access to business finance, and a Capital Growth Fund for fast-growing enterprises.

However, Michael Baxter, editor of investmentandbusinessnews.co.uk and co-author of Bubbles and Wisdom, claimed the chancellor's speech was light on detail.

"I like the way he talked about entrepreneurs and SMEs. However, I feel that a lot of the detail was a little bit vague there," he said.

"He was talking about this capital growth fund and how £4 million has been committed to by the banks which to be honest with you is not a lot of money really. I am interested to see how that pans out."

Recruiters still in the dark over public sector cuts, says REC

Fri, 26 Mar 2010 09:57:42 GMT

Posted by Alex Turner

After this week's Budget the UK is still in the dark about where public sector cuts will be made.

This is the view of the Recruitment and Employment Confederation (REC), which said the Budget failed to reveal where the "public sector spending axe will fall".

Although some references were made about reducing agency staff use in the NHS and the Home Office, the organisation said the challenge for recruiters will not be known until more details are announced.

Tom Hadley, REC director of external relations, said: "The REC believes that simply slashing agency staffing budgets is not an appropriate response.

"A radical new approach to public sector service delivery is needed to create efficiency. Flexible staffing arrangements are a key part of this and we will continue to push this message through our Public Sector Resourcing campaign."

The REC is not the only body to voice concerns about the vague nature of the Budget however, as Michael Baxter, editor of investmentandbusinessnews.co.uk, said the chancellor had not provided enough details on support measures for entrepreneurs and small business enterprises.

CIPD: Budget paints excessively optimistic outlook for jobs

Thu, 25 Mar 2010 04:17:43 GMT

Posted by Alex Turner

Contractors feeling encouraged by yesterday's (March 24th) Budget have been warned that the government has painted an "excessively optimistic picture" on the outlook for UK jobs.

The Chartered Institute of Personnel and Development (CIPD) said jobs cuts in both the private and public sectors as well as an increase in National Insurance contributions mean the government's prediction of a steady reduction in unemployment is "very optimistic indeed".

John Philpott, chief economic adviser at the CIPD, said: "Mr Darling was unable to offer much in the way of surprise tax or spending giveaways, deciding instead to spread limited funds across a range of small initiatives, mostly targeted at the young unemployed and small businesses."

The expert also claimed the chancellor's failure to properly detail the government's deficit reduction plan showed that either he was not prepared to be tough or that the agenda for public sector cuts "is too painful to unveil before the general election".

Take-aways are coming, expert warns

Thu, 25 Mar 2010 11:33:19 GMT

Posted by Alex Turner

Taxpayers have been warned by one expert not to be "fooled" by yesterday's (March 24th) Budget, as "take-aways are coming".

Independent policy adviser Dr Ros Altmann blasted the announcement, saying it was just a continuation of Labour's "fantasy approach" to solving the country's long-term problems.

The expert said Alistair Darling has simply raised some taxes, increased spending in some areas and is essentially hoping that the economy recovers enough to reduce the deficit.

Dr Altmann said many market commentators would look beyond yesterday's announcement as "real measures" will not come until after the election.

"Don't be fooled by a few giveaways - the take-aways are coming," she said.

"If we do not cut spending, interest rates will rise and the cost of debt servicing will increase, thus leading to a vicious spiral, such as we have seen in Greece."

A general election is widely anticipated to be held on May 6th this year.

Miliband: Budget was good for green jobs

Thu, 25 Mar 2010 10:00:47 GMT

Posted by James Curtis

Yesterday's (March 24th) Budget announcement delivered a boost for green jobs and growth of the low carbon economy, according to Ed Miliband.

The energy and climate change secretary said investment into low carbon technologies will help to "propel" the UK towards future green industries.

This could benefit a number of contractors working as limited companies or sole traders in the sector.

Mr Miliband applauded the announcement of the green investment bank, which is set to receive £1 billion of government funding to pay for low carbon infrastructure projects.

It is hoped that the government funds will be matched with a further £1 billion from private sector investors.

Mr Miliband said: "This Budget will help propel the UK further and faster towards the green industries of the future.

"The green investment bank, new support for wind turbine manufacturing sites and the first findings of our work to reform the energy market are all critical. Jobs, growth, energy security and the fight against climate change are all winners."

Budget Update

Wed, 24 Mar 2010 04:47:40 GMT

Posted by Alex Turner

The majority of contractors working in the UK are among the workers who will not face a higher rate of income tax following this afternoon's (March 24th) Budget announcement.

Chancellor of the exchequer Alistair Darling announced that there are to be no changes in income tax, VAT or National Insurance contributions.

However, a number of high-earning sole traders and limited companies could be among those set to be hit by higher taxes.

Mr Darling confirmed that people earning more than £150,000 per year will face a 50 per cent income tax rate from April this year.

Confidence in the economy could also be set to increase after the chancellor estimated growth of between three and 3.5 per cent for 2011.

Announcing the Budget, Mr Darling seemed adamant that the government had taken the best course of action throughout the economic downturn.

"We took decisive action to stimulate the economy, cutting taxes for families and businesses, as well as bringing forward capital spending. We also introduced initiatives such as the car scrappage scheme to protect jobs and skills," he said.

"This helped drive an increase in sales of nearly 30 per cent in the past year. These decisions, of course, have a cost. But the cost would have been far greater, for families and the economy, if we had failed to act."

Firms 'unhappy' with quality of offshore outsourcing

Wed, 24 Mar 2010 02:47:02 GMT

Posted by James Curtis

Contractors working in the UK information and technology (IT) sector could be set to notice an increase in contract opportunities following the publication of a new report.

Recently-published research from Valueshore Spain has revealed that three-quarters of UK firms are disappointed with the quality of the work their offshore outsourcers provide them.

According to the report, 78 per cent of respondents admitted that cost rather than quality has been the key factor when deciding where to outsource their IT projects.

Daniel Naoum, co-founder of the Spanish government-backed group of IT consultancies, said: "Outsourcing is undoubtedly a great way for many businesses to cost-effectively gain access to the IT skills they need, so they need to constantly evaluate whether they are receiving value for money from the destination or provider they have outsourced to.

"At the same time it is equally important that outsourcers' propositions continue to meet the requirements of both large and small organisations and demonstrate true value."

Space industry to continue creating highly-skilled jobs, says minister

Wed, 24 Mar 2010 12:57:14 GMT

Posted by Alex Turner

The UK's growing space sector is set to continue providing highly-skilled jobs, according to Lord Mandelson.

Speaking at the launch of the country's new Space Agency, the business minister claimed the sector had the potential to provide opportunities in the space sector and other related industries.

The comments came as the government announced the creation of a £40 million International Space Innovation Centre, which is expected to allow the UK to "exploit the data generated by earth observation satellites".

Lord Mandelson said: "The £6 billion space industry is one of Britain's real success stories.

"Year on year it provides more jobs both directly and indirectly to the UK workforce. This is exactly the kind of high value-added industry we need to support as we rebalance our economy, creating sustainable growth and the jobs of the future."

According to the minister, the space sector "underpins" advancement in high-speed broadband, GPS, high definition television and other services "that the modern world relies on".

Potential entrepreneurs urged to seize opportunity

Wed, 24 Mar 2010 11:52:03 GMT

Posted by James Curtis

Potential entrepreneurs who are thinking of starting a new enterprise have been urged to move before the economy fully recovers.

Entrepreneur Julie Meyer, who is currently serving as a dragon on the BBC's Online Dragons' Den, said start-up costs are "much lower" now than they will be when the market returns.

"People have learned how to become better business managers earlier in their career and those people know that the downturn is the time to set up a business so that when the market comes back you're already pulling out ahead of the competition," she said.

"Timing is a huge advantage, and [those with] the smart money always know you have to be building in the downturn in order to pull ahead in the upturn."

The comments follow the publication of a report from the Local Data Company, which revealed a 5.6 per cent increase in new independent businesses in 2009.

Year-on-year, there was a four per cent increase in the new retail, leisure and service enterprises.

Budget should be used 'to create green jobs'

Tue, 23 Mar 2010 05:07:20 GMT

Posted by James Curtis

The forthcoming Budget should be used to focus on the creation of green jobs in the UK.

This is the view of environmental campaigning charity Friends of the Earth, which said Alistair Darling must use tomorrow's (March 24th) announcement to create a "stronger, safer economy".

Cutting bills must also be Mr Darling's priority, according to the organisation, which called for increased energy security and a push on "slashing" emissions.

The calls could be of interest to a number of contractors working as sole traders or limited companies in the country's low carbon economy.

Andy Atkins, Friends of the Earth's executive director, said: "The development of a greener economy will create a stronger, cleaner and safer future for us all - Alistair Darling must lay the foundations for this in the Budget.

"By investing in clean technology and slashing energy waste the chancellor can create thousands of new green jobs and business opportunities, reduce our dependency on fossil fuels and make the UK a world leader in tackling climate change."

Bank offers tips ahead of new tax year

Tue, 23 Mar 2010 02:39:34 GMT

Posted by Alex Turner

Contractors working in a wide range of industries could be among those interested in new tax tips being offered by one bank.

HSBC has published new guidance ahead of the start of the new tax year on April 6th.

The bank said the tips could help taxpayers become more tax efficient over the next 12 months.

Included in the advice is a call for taxpayers to ensure they are on the correct tax code.

This call is perhaps more important than ever given the reported problems HM Revenue & Customs has had with its new coding system.

HSBC also urged taxpayers to use their maximum ISA allowance, which has increased to £10,200 for over 50s and £7,200 for under 50s.

David Wells, head of investment, insurance and savings at HSBC, said: "All political parties are in agreement that a major tightening of the nation's belt is necessary over the next few years to reduce the huge burden of public sector debt.

"The likelihood of yet higher taxes, as well as the introduction of new taxes, is therefore almost certain."

REC: Spending cuts to impact Scottish jobs

Tue, 23 Mar 2010 12:13:37 GMT

Posted by Alex Turner

Cuts in public expenditure could "cloud the outlook" for the Scottish jobs market, according to one industry body.

The Recruitment and Employment Confederation (REC) has urged public sector employers not to make "knee-jerk" staff cuts.

According to the organisation, this would have a negative impact on employment opportunities and "jeopardise front line services".

Lisa Boutineau, director of REC Scotland, said: "Public bodies will need to meet the challenge of delivering efficiencies whilst maintaining front line services. Solutions may include the use of skilled contract and interim staff to provide support and expertise when required.

"Flexible staffing arrangements must be at the heart of cost-effective resourcing models and will provide opportunities for workers."

The comments follow the revelation that unemployment in the country has increased by 16,000 over the last quarter.

A resourcing campaign was recently launched by the REC in a bid to encourage public sector employers to look into flexible work arrangements in order to maintain the delivery of important services.

Government announces creation of new Institute for Web Science

Tue, 23 Mar 2010 10:03:21 GMT

Posted by James Curtis

Contractors working in the UK's information and technology sector could be among those to benefit from the creation of a new research facility.

The government announced yesterday (March 22nd) the creation of the new Institute for Web Science.

Prime minister Gordon Brown has said that £30 million will be set a side for the institute, which will be headed by world wide web inventor Berners Lee and leading web science expert Professor Nigel Shadbolt.

It is hoped the centre will create "significant new opportunities" for business and the public sector.

Mr Brown said: "This institute will help place the UK at the cutting edge of research on the Semantic Web and other emerging web and internet technologies and ensure the government is taking the right funding decisions to position the UK as a world leader.

"We will invite universities and private sector web developers and companies to join this collaborative project."

Conservatives: AWD regulations are counter-intuitive

Mon, 22 Mar 2010 01:27:00 GMT

Posted by James Curtis

The European Agency Workers Directive (AWD), which is due to come into effect in the UK in October next year, could reduce the country's labour market flexibility.

This is the view of the Conservative Party, which said in their current state the regulations are "counter-intuitive".

Shadow business minister Jonathan Djanogly, said: "They should encourage the agency market and not detract from it. The future will be about flexibility in the workplace.

"Agency workers are a key way to get young people into the workplace and the regulations will have a negative impact in this respect."

Mr Djanogly said the Tories could review the implementation of the legislation if they are voted into power in the forthcoming general election.

The party said that they are "very unhappy" about the fact that the 12-week qualifying period, which will see agency workers counted as employees after 12 weeks on one project, is not set out in the AWD.

REC: CQC report highlights staffing issues in NHS

Mon, 22 Mar 2010 12:00:12 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies in the UK's healthcare sector could be among those affected by low staffing levels in the NHS.

This is the view of the Recruitment and Employment Confederation (REC), following the publication of a recent report by the Care Quality Commission (CQC).

The CQC study revealed that 45 per cent of NHS workers feel they are unable to do their job properly as there are not enough people working.

REC director of external relations Tom Hadley said the figure should encourage the NHS to look to agency workers and temporary staff to ensure standards are kept up.

"As well as helping employers, flexible resourcing is also of benefit for individual workers in the NHS," he said.

"Flexible staffing arrangements are a vital component of any large organisation's resourcing strategy and must be seen as part of the solution for cost-effective workforce management within the NHS."

Self-employed are 'saving less than employed workers'

Mon, 22 Mar 2010 10:04:46 GMT

Posted by Alex Turner

Self-employed workers are not putting as much money into pension schemes as those who work for an organisation, according to new research.

A recently-published report from pensions specialist Standard Life has revealed a significant savings gap between the two working models.

According to the study, self-employed workers have average savings of £24,500 and half have amassed pots of only £3,500.

However, their employed counterparts have saved on average £73,000, with half having saved more that £20,000.

Standard Life said the difference can be attributed to self-employed workers prioritising their enterprise over their long-term financial planning.

Andrew Tully, the organisation's senior pensions policy manager, said: "The UK has a long-term savings gap which is magnified when you compare the self-employed and employed.

"While it is entirely understandable for the self-employed to focus on making their business a success, they also need to be aware of the implications of their employment status when planning their long-term finances."

F&C: Increase VAT not income tax

Fri, 19 Mar 2010 04:07:07 GMT

Posted by James Curtis

An increase in VAT would be more effective in reducing the country's deficit than a higher rate of income tax.

This is the view of financial specialist F&C, which said increasing direct taxes, such as taxing high earners 50 per cent, would not raise as much revenue as a slight increase in VAT.

The comments could be of interest to a number of sole traders and limited companies facing higher taxes from April.

F&C's director of UK strategy Ted Scott claimed the increase could be as little a one per cent and wouldn't need to see VAT increased to 20 per cent, as some experts have suggested.

He said: "The government has a commitment to cut the deficit in half in four years; if it is to achieve this it cannot rely on a growing economy generating higher tax receipts alone.

"I think that an indirect tax like VAT will be much more effective than increases in direct tax as it will produce much more revenue to the Treasury for a given percentage increase and is also harder to evade."

The comments come ahead of the government's next Budget, which is set to be unveiled on March 24th.

Brookson Managing Director, Martin Hesketh, said: "With an election looming in May an increase in VAT, although unpopular, may not be received as negatively by the electorate as increasing direct taxes such as income tax.

"With any increase in tax for small businesses there are usually various tax planning opportunities available. At Brookson we assist in keeping your business's tax and accountancy obligations in order so that you can take advantage of any tax planning opportunities suitable for your business, when they arise."