The CIPD has predicted that half a million jobs could be cut in the public sector over the next 5 years. This could be potentially damaging to the umbrella company industry, since many workers reside in this sector.
According to new research by reThink Recruitment, pay rates for IT contractors in the north of the country are increasing more than three times quicker than the rates for equivalent contractors in the south.
Limited company contractors, recruitment agencies and umbrella companies could be in line for a series of new PAYE penalties, which have been introduced by HMRC from the start of this tax year.
According to recent research by BACS, the payment of invoices to UK SMEs, including limited company contractors and umbrella companies, is being delayed by an average of more than 40 days longer than the original invoice date.
The Liberal Democrats released their election manifesto yesterday and pledged among other things to crackdown on tax avoidance. They also want to scrap income tax below a threshold of £10,000, costing the UK exchequer around £16.7bn a year.
According to the Conservatives, the proposed 1% increase in National Insurance Contributions will result in the loss of nearly 60,000 jobs from the UK economy. This figure was cited in their election manifesto, published on Tuesday.
The Labour party released its election manifesto yesterday and it did not contain many new policies relating to tax and businesses They did promise to keep business taxation competitive and encourage investment by increasing capital allowances.
From 6th April 2010, new PAYE regulations mean that HMRC will accept the use of electronic P60s (also known as eP60s). This is great news for large employers, such as umbrella companies.
The REC’s latest report on jobs shows that in March growth in temporary placements reached the strongest level for nearly 3 years. This proves the “vital flexibility” that temporary and contract workers, including umbrella company contractors, provide for UK businesses.
Gordon Brown is going to strengthen the links between the Points Based System and training UK workers in a bid to fill the UK’s skills gap.
HMRC is in line for a tough year as they face more cost cuts whilst continuing to find and chase tax evaders. This could have a knock on effect on those who work through umbrella companies.
How quickly the months roll around, the first quarter seemed to just disappear with minimal upset for most umbrella companies (there were a couple of exceptions).
There have been a lot of complaints recently about the proposed hike in NICs and the Tories seem to have taken heed.
According to reports from the REC, there has been a recent surge in the number of job vacancies for high end workers in the financial sector.
According to the findings of a new survey by XLN Telecom, SMEs including umbrella companies and recruitment agencies, do not think that Tory victory at the next general election will result in a dramatic upsurge in business.
Limited company contractors could once more be in the firing line with HMRC. According to accountancy firm Smith & Williamson, HMRC will be closely monitoring the use of dividend payments between now and the end of the tax year.
