They are keen to enforce the IR35 legislation and ensure contractors are operating compliantly however the compliance units will now investigate IR35 alongside other compliance checks and there may be non specialist teams leading the investigation.

There will now be four compliance units with the other three located in Edinburgh, Croydon and Manchester.

With IR35 investigations on the increase, it was agreed that an additional unit was needed but those that attended the forum still believe there needs to be improved clarity of the legislation so contractors can feel confident that they are operating compliantly.

HMRC provide a contract review service but admit that there are very few contractors that use the service, perhaps feeling it could lead to an investigation.

ICS are led by three guiding principles, trust care and compliance and as such provide a free IR35 contract review.

For those that want to find out more about IR35, we have also created a digestible guide which can be downloaded here.

HR Magazine recently reported on the skill shortage urging companies to invest in attracting young engineers and women to the sector but reported separately is the push from some companies to encourage contractors working for them to become permanent employees.

Contractor Calculator recently discussed the impact this practice would have on the contractor, the industry and the economy overall.  They say it will change the dynamics of the market whilst also altering rates and perhaps even productivity levels.

Summing up, Contractor Calculator says companies pushing contractors into permanent employment ‘face losing the champions of corporate venturing, entrepreneurship and innovation. And they reduce their ability to compete as effectively as their competitors.’

Are you a contractor within the oil and gas industry being urged to take up a permanent role? Do you agree that it will alter the dynamics of the industry?

They say the UK governments current approach to boost lending to SMEs is failing and the mandatory scheme “could build confidence in both lenders to lend and borrowers to borrow [and] could potentially unlock billions in consumer spend”.

However, there is expected to be concern within the Treasury that this could be viewed as a re-working of the notorious payment protection insurance (PPI), of which the mis-selling led to one of the largest financial services sector scandals, and is estimated to have cost banks and other lenders over £10bn in costs and compensation.

To ease the concerns, they insist that there would only be small charge attached and the most popular insurance scheme would be for the government to underwrite the first 3% of all losses on loans however a private sector scheme could also work if it was made transparent.

Similar schemes are already being used across the globe and are popular in the USA and Canada. Blond urges the UK to get on board, “SMEs the workhorses of the economy, are being denied opportunities for growth. Lending to the small business market has dropped by 25% since 2008”.

The GMB Union have announced today that they plan to lodge claims in the High Court for 70 members that were severely affected by such a practice. Representing construction workers from all over the UK the initial claims are just the ‘tip of the iceberg’ with at least another 3000 workers with claims.

In 2009, the blacklist was revealed by the Information Commissioner’s Office. They discovered a database of 3,213 names of construction workers and environmental activists used by 44 companies.

Speaking to the BBC, Michael Newman, from law firm Leigh Day, said: “Workers are only now finding out about this scandalous practice, and are rightly outraged.”

Maria Ludkin, the GMB’s legal officer also added: “The ICO needs to start acting like a serious regulator and let these victims know so that they can join this claim for damages.”

The Construction Industry Scheme (CIS) sets rules about how payments are made to constructions workers. Our CIS service was created for contractors in construction and ensures these requirements are met, processing your pay and making all the relevant deductions. Simple and Straightforward. Think ICS.

Reported by Accountancy Age, the MCA expect demand for management consultants to continue to be high particularly abroad where there is a need for them in emerging markets.

Whilst recognising the opportunity aboard, consultants also expect to benefit from the governments ConsultancyONE framework when it is rolled out.

An industry valued at £9 billion IT consulting accounted for 1/5 of the fee income, with other core consulting services: financial systems and analysis; operational performance; and project management continuing to grow.

Speaking about the opportunities, MCA chief executive Alan Leaman commented;

“The UK is a highly successful base for consulting firms, and clients are looking for performance improvement, reducing costs or improving processes.”

Shale gas drilling, known as “fracking”, involves shattering hard shale rocks underground to release gas using either hydraulic pressure or tiny explosions.

If the government were to support this ‘unconventional’ method of extraction in the North West, they estimate 72,000 direct jobs would be created with many more in created in the supply chain benefitting the local and UK economy.

The roles required; construction workers, engineers, business analysts to name just a few, naturally fit with contractors suggesting this development would create opportunities for contractors from all across the UK.

The Shale Gas drilling in Lancashire was halted in 2011 after two earth tremors in close succession on the Fylde cost and as such there is concern from locals in the area however this type of extraction could make the UK industry much more energy efficient.

Dan Byles MP sums up; “If we get this right, in future I believe the world could look to the UK as the gold standard for a well regulated and safe shale gas industry that benefits local communities and the nation.”

There is always a peak of fraudulent emails sent out between April and July as this is the time when HMRC issue tax credit renewals and refunds. The advice from HMRC is to not be duped by these emails. They are becoming more sophisticated and look ‘real’ but HMRC would never contact you by email in order to update their records. They would also never request payment information or personal details by email.

In 2012, there were 22,000 fraudulent emails reported to HMRC though it is likely there were many that went unreported. By giving the personal details requested in these fraudulent emails, you risk these identity thieves raiding your bank accounts, taking out credit cards in your name and running up massive debts that could damage your credit history.

If you do receive a phishing email, HMRC urge you to forward the email to phishing@hmrc.gsi.gov.uk and then delete it from your inbox.

Alongside using the money to regulate and enforce the legislation, they are also committed to making it simple to comply.

Commenting on the planned spend, TPR chief executive Bill Galvin and chairman Michael O’Higgins say: “We aim to make it as easy as possible to comply with the new duties, by helping with software development, awareness campaigns and education programmes.

“In parallel, we will make clear that non-compliance is not an option, and our investment in building intelligence and enforcement capabilities will increase substantially this year, ahead of the staging dates for medium and small employers commencing in 2014/2015.”

The legislation is the governments attempt to address the increasing proportion of the UK that are financially unprepared for retirement. The auto enrolment will see the employee, employer and government (via tax relief) pay a percentage into the pension.

Managing auto-enrolment in house can be a burden to agencies, with added costs and extra administration. By choosing to refer contractors to our compliant ICS Umbrella Service, we can take this extra stress away at no extra cost.

Assumed that the permanent role does not stipulate that you can’t do additional work, many of those who ‘trial’ contract work go on to favouring the contractor lifestyle, leaving their permanent job behind.

Research conducted by work site oDesk and agency Millennial Branding revealed that seven out of ten contractors who still have a permanent role would like to leave and be entirely independent. They surveyed 3,193 contractors worldwide and the result indicates that once a permanent employee tries contracting, they are inclined to take the leap and become a contractor.

Reported by Freelance UK, those surveyed said that the biggest ‘pull’ factors were the flexibility to work where and whenever they liked doing something they were passionate about and having the option to contract whilst abroad giving them the chance to travel the globe.

Did you ‘test the water’ and contract alongside a 9-5 job before you became a contractor? Are you still doing both but wish to contract permanently? Join in.

Supporting Contractors, Think ICS.

The government, employer (umbrella company) and employee (contractor) will all pay a percentage into a pension in an attempt to help the UK workforce prepare for retirement. It could be that you want to arrange your own pension as well and there are various options available to a contractor using specialist providers.

There are also those that have retired from their permanent role and have moved into contracting to fund their retirement and also give them the work life balance they require. For many people of retirement age, they don’t want to just stop, they want to slow down and be responsible for the amount of work they want to do. Contracting gives them this option whilst also funding their ‘retirement’.

The contracting lifestyle suits many age brackets but they should always look long term and prepare for when the day comes that they do actually want or have to stop.

Are you a young person looking for more flexibility by contracting? Or of retirement age choosing to continue contracting? Tell us why you chose to be a contractor!

ICS have partnered with Now Pensions to auto enrol all our clients into a pension scheme on our given staging date of 2014. This will be of no extra cost to you or your agency.