“Be Pragmatic” Says Accountant, Regarding IR35
The IR35 changes have had contractors complaining and moaning, there is no doubt about that…but should they all leave the public sector? Maybe not.
The IR35 changes have had contractors complaining and moaning, there is no doubt about that…but should they all leave the public sector? Maybe not.
One subject I’ve talked about before is how IT contractors would be leaving the public sector once those unpopular IR35 tax changes came into force.
As you might be aware, changes are about to happen in the public sector with thousands of contractors facing disruption to their tax situation.
Much has been said about UK austerity measures and how it harms the economy, but freelancers and contract workers may benefit from it believe it or not!
While private sector firms are hiring temporary staff with highly specialised technical skills, the public sector’s contractor hiring rate has slipped by nearly 15 per cent, according to a recent quarterly report from procurement firm Comensura.
After the recent revelations that a lot of Government contractors were avoiding tax by paying themselves through a personal service company, the Treasury has announced that all contractors earning more than £220 a day will have to pay the correct tax if they have been in a department for longer than 6 months.
Are more people in the UK turning to self-employment out of necessity rather than choice? This debate has been raging over the last few months and the news that self-employment has reached an all time high will no doubt start people talking again.
The latest Purchasing Managers Index from the Bank of Scotland was published at the beginning of the week and umbrella company contractors should be able to take heart from the results.
Despite government promises to make it easier for small businesses to win public sector contracts, it’s plans don’t seem to be working.
4.132m people in the UK are now self-employed according to the latest employment statistics from the ONS. That’s an increase of 136,000 since February 2011.
IT contractors may be interested to learn that industry analyst Gartner has revised its prediction for worldwide IT spending this year.
Recruitment agency Adecco recently said that the number of job vacancies was on the increase last month, news that will no doubt delight IT umbrella company contractors.
The REC Healthcare division has welcomed recommendations from the Royal College of Nursing on ways to maintain nurse/patient ratios.
The March edition of the REC’s JobsOutlook report showed that employer confidence in February increased to its highest level in 12 months. It also held good news for both temporary and permanent job candidates.
Umbrella company contractors who had been hoping to benefit from more government contracts are disappointed that major corporations are still getting the bulk of the work.
No sooner has the furore surrounding Mr Lester died down, it now transpires that the Department of Health has been paying 25 senior members of staff through limited companies. In fact more than £4 million has been paid out in this way.