New proposals by the Financial Services Authority could signal the end of self certification, popular with many contractors, freelancers and sole traders wishing to obtain a mortgage. The FSA has confirmed that it believes the self employed, including contractors, should have to prove their ability to afford repayments on a mortgage in order to be approved for a loan.
Business News
Contractors one step closer to IR35 review
Posted on 26th July 2010 by KarlThis week saw the launch of the new Office of Tax Simplification, which signals a review of the impossible IR35 legislation. Many small businesses are the backbone of the United Kingdom economy but are often perplexed by the over complicated tax system, especially the PAYE system and employee benefits and operating within relevant legislation.
Contractors warned to be clear about IR35
Posted on 22nd July 2010 by JasonIR35 legislation has been problematic for many contractors since its introduction in April 2000, when many were forced to operate within the boundaries of IR35. Contractors are being warned to check their contracts with agencies and clients carefully to ensure that the terms and conditions comply fully with the legislation.
Contractors warned over two year rules
Posted on 20th July 2010 by LouiseContractors have been warned about the 24 month rule which applies to claims for travel and subsistence whilst working on temporary contracts. If a contractor is working at a temporary workplace he may claim travel and subsistence expenses. However, if the contractor is found to be working at the temporary workplace for a period longer than 24 months he will not be able to claim as this will then be classed as a permanent place of work.
Limited companies set to increase
Posted on 19th July 2010 by KarlFigures from Companies House show that the number of new limited companies has increased by ten percent in the period 2009-10. In 2008-09 330,100 limited companies were registered at Companies House compared to 362,300 in 2009-10. This shows a significant increase compared to the previous two years when numbers of new companies fell, mainly due to the effects of the credit crunch.
IT contractors to face cuts in public sector expenditure
Posted on 16th July 2010 by JasonMany umbrella company IT contractors and freelancers could face losing substantial amounts of money as services and fees are ordered to be cut by 20 percent. Following huge public sector cutbacks, 19 of the largest service suppliers of IT and technology in the United Kingdom attended a meeting where they were told to cut the fees charged to the government by £16 billion.
Statistics show reduced unemployment figures
Posted on 15th July 2010 by KarlThe Office for National Statistics released the latest employment figures yesterday, revealing a drop in unemployment. Many will be surprised by these figures as unemployment was forecast by many to rise, especially after problems experienced by businesses during the economic downturn.
Increased opportunities for IT contractors
Posted on 14th July 2010 by LouiseIT contractors may be facing a brighter future as IT work increases in London and the South East of England. Research undertaken by ReThink Recruitment discovered that IT vacancies in England rose to 64 percent from the 58 percent of vacancies two years ago.
Reductions in helpline hours to affect umbrella company contractors
Posted on 13th July 2010 by KarlHM Revenue & Customs has announced a reduction in the hours that helplines will be available to the public for advice and assistance. This is a result of public sector budgets being cut by 25 percent, which has resulted in many services consequently reduced to save money. The plan to reduce their helpline opening hours could seriously affect contractors who are frequently only available to contact HMRC during evenings and weekends when they need to discuss problems or seek advice.
Slow recovery of UK economy means uncertainty for contractors
Posted on 12th July 2010 by JasonUmbrella company contractors are amongst those that have been warned of an economy which is still in the early stages of recovery, meaning that the jobs market is still uncertain for many.
