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How was 2010 for you?

January 4, 2011 in Contractor News, Freelancing, Industry comment, Life, Recruiter News, Tax

Welcome to 2011 and very best wishes to everyone for the year ahead. Let’s hope it’s happy, healthy and of course prosperous. Here at Parasol and Clearsky we are looking forward to another busy year and as we approach our 11th year of trading, there is much to be done.

2010 was an interesting year in many respects, January 2010 saw the high profile collapse of an “Umbrella” company and I use the quotes as the reality of the model was once again exposed and the spectre of offshore activities discovered. The noise around the Agency Workers Regulations (AWR) intensified as the reality began to sink in and this was followed by National Minimum Wage consultations and HMRC consultations on the overall operation of PAYE. The new Government then instigated the office of tax simplification and ir35 once again regained top spot in Contractor related news and debate. More offshore solutions came under pressure through some high profile collapses and alleged financial irregularities. So on the political landscape it was pretty full on and our founding membership of FCSA helped us contribute and educate on many of these issues for the (usually unseen) benefit of Contractors and Agencies alike.

The actual business of contracting was tough with roles and rates remaining a challenge. I am not sure 2011 will be hugely different but I think steady progression is better than boom and bust. As we progress through the year  I also expect the noise around AWR to intensify, remember that the true employment based solution is already doing much of what AWR requires and this compliant solution will remain after October!

I therefore look forward to 2011 with sensible optimism and confidence that Contracting will remain a crucial part of the UK economy. We will be doing our very best to support this and have always been about the long term, here’s to the next ten years!!

Interesting times ahead – ir35 to go?

May 24, 2010 in Contractor News, Freelancing, Industry comment, Life

So the dust has settled (for now) and our new masters are setting about making the changes they believe are necessary to improve our economy and improve our lot.

In the recently published coalition document there were probably two of three key specific Contractor related matters that come to mind:

  1. IR35 was mentioned along the lines of tax simplification;
  2. Public cuts;
  3. No mention of Agency Workers Regulations (AWR).

For me IR35 and tax simplicity for Contractors is all about “certainty”.  As drafted, IR35 is subjective and, therefore, using the same set of facts two different views can be taken.  If the legislation was clear and could provide a series of specific tests that then produced a balanced answer and that answer met a criteria level then taxpayers, advisers & HMRC would save a lot of time and certainty would be gained for all.

Cuts – I think that in the short term, public spending cuts may have an impact as certain Government department are forced to reduce temporary headcount and then permanent. Once that round is over, guess where they will probably go to then ensure key projects are then delivered?

I don’t agree with some commentators views that AWR will be removed or stopped. This is European wide legislation and therefore cannot be simply put to one side. It may get some guidance updates (welcome) but I can’t see it going!

Let’s hope the new government can address some of the issues that the flexible workforce faces as in my opinion, they are a crucial part of the UK’s recovery process.

CIPD predict fall in Contractor roles in Public Sector

April 21, 2010 in Contractor News, Freelancing, Industry comment, Recruiter News

The CIPD have today issued a news release which states that any post-election spending cuts could lead to 500,000 job losses in the public sector and that this in turn could have a potentially damaging effect on the umbrella company marketplace.

It is possible that public sector cuts could affect the Recruitment industry as a whole but in general, Contracting is anti-cyclical and the steady uptake in the private sector could counter balance any public sector fall.

If an umbrella company has a critical exposure on public sector contractors via, say, a specific Agency then there could be issues.

I think it is also important to mention that the definition of a public sector contractor is also relevant. There is a marked difference between an agency nurse (for example) and an IT contractor being used on an NHS project. In that example, and there are many, there is a key difference about where the impact will be most felt.

I predict a stable year for the professional umbrella company despite continued land grab strategies (free offers and high incentives to join) at the other end of the market.

Lib Dems helping Contractors?

June 6, 2009 in Contractor News, Industry comment, Tax

We reported on the Parasol site that Lib Dems seem to putting some effort into working for Contractors, no bad thing. There are even some Labour MP’s signing up!

“Flexible Working” what does it all mean??

March 19, 2009 in Industry comment, Life

I read the article “Have your say about flexible working” on the Xpert HR blogs and it made me think of two things:

  1. To us in the Contracting/Freelance world it means freedom to chose roles, rates and in some ways, lifestyle.
  2. To HR it is all about flexibility in engaging employees and flexible ways of matching benefits and rights.

The second point is relevant when you consider my sweeping generalisation that much of the HR profession is not fully aware of the benefit Contracting (and associated trading forms) can bring to businesses. If you consider that a Parasol employee is both flexible and has rights then I am pretty sure that would be of benefit to end clients.

Don’t get me wrong I am all for working on the best ways for people to work and have flexibility but there are also some tricks end-clients miss that would help them save money and time. It would also help the “flexible economy” and ensure we remain lean and able to compete.

So next time you meet a HR person, explain the benefits of “employed” Contracting and if they don’t glaze over you have done us all a favour!

It’s not all gloom and doom

January 14, 2009 in Industry comment

Yes it is tough but it is not the end of the world!

It would be silly to suggest that things are not difficult for Contractors right now but at the same time it is not all doom and gloom. There are certainly mixed messages coming through but at the same time there are also new roles being advertised by Recruiters. Initial contracts are shorter but we are still seeing a good level of renewals. Projects that could save organisations money still need to be completed and those companies are turning to Contractors. At the same time, rates have dropped but not by the amounts many might imagine.

Bottom line… skillful Contractors across a number of industries and sectors are still busy and have stayed so by keeping those skill sets topped up and have no doubt taken the long term view.

As I stated before Christmas we have some great plans to help you and we are completely committed to Contractors and flexibility. You can count on Parasol being there.