Permanent versus temporary employment. It is always a bit of a pendulum. Opportunities for contractors and freelancers wax and wane with the state of the economy like they do for any workers, but opportunities for self employment are particularly fine tuned to what is happening generally in the labour market.
The April situation seems to have favoured permanent positions over contract and other temporary placements according to a survey by the Recruitment and Employment Confederation.
The number of contract opportunities is down slightly and seems to be balanced by a corresponding rise in permanent placements according to the survey. A little worrying for contractors is that the drop in the number of new contracts, although only quantitatively quite small, was still the largest drop for three years.
There was better news for people looking for short term contracts only as the number of vacancies was a little higher in April.
The chief executive at REC, Kevin Green, said that the economy was still pretty fragile and the small changes in opportunities were a reflection of that fragility. He said that rather than take on more staff last year, the tendency was for companies to seek what additional capacity there was within the existing workforce and utilise that as much as possible.
The expectation is that there will be a moderate improvement both in consumer and business confidence later this year and this should have some influence on the amount of opportunities for both contractor and permanent staff placements.
The Agency Workers Regulations are beginning to have some effect on the way in which companies hire staff and this might be part of the reason for the pendulum shifting in the direction of permanent placements, according to Mr. Green.
He also said that the amount of confidence reported above might be affected by continuing reports of a possible double dip recession and the at present unknown developments in the eurozone.
Huwebes, Mayo 10, 2012
Linggo, Mayo 6, 2012
Contradictory news on job opportunities for top notch IT contractors
There seems to be some contradictory news about contractual opportunities for high flying IT contractors with some job agencies reporting higher numbers of contracts while others suggest a down turn.
According to one agency that deals exclusively with IT contractors, the number of opportunities so far has definitely showed a slow down although it was too early to tell whether this was a long term trend or simply a seasonal blip. The associate director at Hudson Recruitment, which specialises in finding jobs for contractors, said that companies were showing increasing reluctance to take on IT contractors except in particular niche areas.
Stuart Rogers said that it appeared that companies were becoming increasingly reluctant to spend money on hiring IT contractors rather than taking on permanent staff. IT recruitment firm ReThink Recruitment indicated a similar story with many of their clients requesting them to search for permanent staff to replace their contractor headcount. The trend appears to be based on cost cutting with companies as saying that it was cheaper to employ permanent staff than contractors. ReThink’s spokesperson said that the latest developments seemed to focus on company needs rather than IT contractor opportunities with IT contractors opting to work longer hours, extend their present assignments rather than look for new ones and accept a lower pay rate.
The contrary news is that the need for contractors is likely to rise again later this year as it becomes more difficult to find permanent staff for particular projects. Both Hudson and ReThink spokespersons agreed that the pendulum is likely to tip towards contractors again in the near future, particularly when companies found it hard to find the sort of skilled personnel on a permanent basis. In contrast to these two recruiters, another IT contractor specialist, SQ Computer Personnel reported that they had found that the number of new openings for IT contractors was significantly greater in March this year than at any time within the previous two years. SQ’s founder, Bernie Potts said hat despite the March figures it was difficult to tell if the overall trend was upwards as he thought that the jobs market for IT contractors was actually quite competitive.
According to one agency that deals exclusively with IT contractors, the number of opportunities so far has definitely showed a slow down although it was too early to tell whether this was a long term trend or simply a seasonal blip. The associate director at Hudson Recruitment, which specialises in finding jobs for contractors, said that companies were showing increasing reluctance to take on IT contractors except in particular niche areas.
Stuart Rogers said that it appeared that companies were becoming increasingly reluctant to spend money on hiring IT contractors rather than taking on permanent staff. IT recruitment firm ReThink Recruitment indicated a similar story with many of their clients requesting them to search for permanent staff to replace their contractor headcount. The trend appears to be based on cost cutting with companies as saying that it was cheaper to employ permanent staff than contractors. ReThink’s spokesperson said that the latest developments seemed to focus on company needs rather than IT contractor opportunities with IT contractors opting to work longer hours, extend their present assignments rather than look for new ones and accept a lower pay rate.
The contrary news is that the need for contractors is likely to rise again later this year as it becomes more difficult to find permanent staff for particular projects. Both Hudson and ReThink spokespersons agreed that the pendulum is likely to tip towards contractors again in the near future, particularly when companies found it hard to find the sort of skilled personnel on a permanent basis. In contrast to these two recruiters, another IT contractor specialist, SQ Computer Personnel reported that they had found that the number of new openings for IT contractors was significantly greater in March this year than at any time within the previous two years. SQ’s founder, Bernie Potts said hat despite the March figures it was difficult to tell if the overall trend was upwards as he thought that the jobs market for IT contractors was actually quite competitive.
Sabado, Mayo 5, 2012
Freelancers - the workforce of the future?
Elance, the online marketplace for freelancers, has just released the results of a survey which seems to suggest that many businesses are turning to freelancers in preference to permanent employees with the trend likely to increase in future.
The survey involved nearly 600 businesses, with 84% of them stating that online work platforms would be likely to vehicle of choice in the future. Almost half of those companies surveyed claimed that they had substantially lowered their costs by using freelancers in their workforce.
The statistics favouring the use of freelancers came thick and fast in the survey with 80% of the companies surveyed saying that they had accomplished faster work completion cycles when using freelancers and nearly 90% saying that they were able to engage or hire freelancers much faster than hiring staff through the normal channels.
Three quarters of those surveyed reckoned that hiring freelancers online gave them a clear competitive advantage and a similar number thought that hiring freelancers was an important part of their business outcomes.
One of Elance’s Vice presidents said that they were “witnessing a revolution” with the growth in the use of online contractors and freelancers. Kjetil Olsen said that the use of freelancers not only significantly reduced labour costs but allowed companies to find talent for short term projects quickly and efficiently without having to initiate and maintain long term arrangements.
The main demand for freelancers seemed to be website developers, graphic designers, online web marketers and content creators.
The main demand for freelancers seemed to be website developers, graphic designers, online web marketers and content creators.
A spokesman from a digital agency which has been using online freelance talent for some time said that the use of such talent had enabled their business to grow significantly. The Director of Media Lounge, Mike Barnett, said that having to hire workers was a “big financial commitment” and it was difficult to know how long to take on ordinary workers with the sort of part time or temporary nature of the work that the company does. He said that the hiring of freelancers through such sites as Elance was a good solution.
The survey revealed that nearly half of the companies surveyed intended to hire 90% or more of their workforce online in future.
Lunes, Abril 30, 2012
No retrospective tax, say freelance workers
A campaign has been initiated to speak up against retrospective taxation under section 58 of the 2008 Finance Act, which will threaten to bankrupt scores of IT contractors.
With the subject of retrospective taxation circulating in Whitehall, the campaign group has spoken to MPs who sit on the Treasury Committee to check if all the facts were available when Section 58 was backdated.
Even though the “No To Retro Tax campaign” reveals that the judicial review and the court of appeal hearing regarding legislation supported the retrospection, it thinks that HMRCs suggestion was accepted and no background study was initiated. Identifying three key areas which it states were ignored when the bill was eventually passed, the campaign contacted the committee to check and see if parliament was offered all the facts when the HMRC put forward its proposals.
It is sure that the facts concealed from parliament made it impossible for an educated decision to be made when the tax office pushed to retrospectively alter an Act of Parliament, passed way back in 1987. The chairperson of the campaign group, Alistair Renshaw, said that the principle of retrospection is that somebody can end up being punished for undertaking something which was quite legal at the particular time is really wrong, precisely when it was done to counter Parliamentary and HMRC guidelines. Because of this, the retrospective components of Section 58, in particular section four, must be amended, so that the Finance Act is brought in line together with the HMRC protocol and the Rees Rules.
Victims affected would be able to confront the changes using the tax courts, Renshaw suggested, but the retrospection of the legislation at the moment disallows such an action. Retrospection is not fair and the campaign group is calling on Parliament to change Section 58 of the 2008 Finance Act to erase the retrospective components that will mean innocent victims will be pushed into bankruptcy for adhering to the law as it existed then. Renshaw also said that in the current political environment, by not supporting tax dodgers the HMRC has the right to shut down tax schemes or perceived loopholes that do not function properly or do not follow Parliament’s intentions. It could also destroy confidence in the legal system and create uncertainty in Britain as an investment haven and will not be good for business.
Even though the “No To Retro Tax campaign” reveals that the judicial review and the court of appeal hearing regarding legislation supported the retrospection, it thinks that HMRCs suggestion was accepted and no background study was initiated. Identifying three key areas which it states were ignored when the bill was eventually passed, the campaign contacted the committee to check and see if parliament was offered all the facts when the HMRC put forward its proposals.
It is sure that the facts concealed from parliament made it impossible for an educated decision to be made when the tax office pushed to retrospectively alter an Act of Parliament, passed way back in 1987. The chairperson of the campaign group, Alistair Renshaw, said that the principle of retrospection is that somebody can end up being punished for undertaking something which was quite legal at the particular time is really wrong, precisely when it was done to counter Parliamentary and HMRC guidelines. Because of this, the retrospective components of Section 58, in particular section four, must be amended, so that the Finance Act is brought in line together with the HMRC protocol and the Rees Rules.
Victims affected would be able to confront the changes using the tax courts, Renshaw suggested, but the retrospection of the legislation at the moment disallows such an action. Retrospection is not fair and the campaign group is calling on Parliament to change Section 58 of the 2008 Finance Act to erase the retrospective components that will mean innocent victims will be pushed into bankruptcy for adhering to the law as it existed then. Renshaw also said that in the current political environment, by not supporting tax dodgers the HMRC has the right to shut down tax schemes or perceived loopholes that do not function properly or do not follow Parliament’s intentions. It could also destroy confidence in the legal system and create uncertainty in Britain as an investment haven and will not be good for business.
Sabado, Abril 28, 2012
Employer confidence on the increase for contractors
The demand for contractor services looks about to increase as employer confidence rises.
The confidence heights of British employers are seemingly on the increase, reveals a newly publicised report.
With confidence reaching its greatest level since early 2009 the demand for the services of limited company contractors looks also set to rise.
The report, just freshly published by the Recruitment and Employment Confederation, identified that British employers intend to take on more staff for short-term and long-term assignments. This moves implies that the current economy is moving in the right direction.
The confederation’s JobsOutlook study says that 34% of British employers have plans to increase the use of workers from agencies over the coming 3 months, while 45% plan to maintain their present levels.
Roger Tweedy, research director said that the total figures from the first annual quarter are extremely positive. In the near future, employers have said that they plan to offer more short and medium term jobs.
Employer confidence levels have reached a record high. The general growth in confidence was still a little less than March so it will be necessary to keep a track of whether this increase in employer confidence will reach a peak soon or increase into the near future.
This trend may be a reflection of government figures recently that indicate that British employment levels increased by 53,000 people in the three months to the end of March. Again, a good sign that employers have been taking on new staff as production levels increase.
These figures are only a small indication of what is actually happening in the economy right now and not a firm forecast of likely future trends.
Martes, Abril 24, 2012
Defaulters might make peer to peer lending not such a rosy prospect
The recent rise in peer to peer lending websites and similar peer to business websites has seen some attractive interest rates being offered to lenders and easily available unsecured credit to borrowers.
However, the attraction may wear off fairly quickly if rules about taxation mean that lenders are not getting such a good deal when all the sums are done after all.
Peer to peer sites, like Zopa, offer much higher savings rates for lenders who are willing to risk their cash than the miserly savings rates presently on offer at standard financial institutions.
One can get more than 6% at present using one of these peer to peer sites, and even more if everything pans out well. The catch seems to be a real difference between the rates that are advertised by the peer to peer sites and what one actually gets after taxation and bad debts are taken into consideration.
Peer to peer sites work like an online broker between ordinary individuals who have spare cash to lend and other ordinary individuals who could do with the spare cash, but are either unable to get a loan from a standard institution or are unwilling to borrow from one of the more expensive short term loans providers like payday loans.
Lenders who lend to individual borrowers through one of these sites are taking a bit of a punt with their cash because the interest they received depends on the borrow actually paying the loan back and even then fees and tax can wipe out some of the gains.
Although one of the advantages of peer to peer sites is that potentially the average lender should get a better rate of interest than from a bank, because the website cuts out the profits made by the bank, the disadvantage is that the lender faces a loss if the borrower defaults.
According to Giles Andrews, who is one of Zopa’s co-founders, the method used to tax the interest received on a peer to peer deposit is “unfair”. This is because the tax is calculated on the interest after the website’s fee has been taken out, but before any decrease due to bad debts.
As the latter can be quite substantial, the lender might end up with considerably less than they thought they were going to get based on the advertised rate on the company websites. In some circumstances, when a lender lends money to higher risk borrowers bad debt may almost cancel all interest out of the loan and the lender ends up with hardly anything.
However, the attraction may wear off fairly quickly if rules about taxation mean that lenders are not getting such a good deal when all the sums are done after all.
Peer to peer sites, like Zopa, offer much higher savings rates for lenders who are willing to risk their cash than the miserly savings rates presently on offer at standard financial institutions.
One can get more than 6% at present using one of these peer to peer sites, and even more if everything pans out well. The catch seems to be a real difference between the rates that are advertised by the peer to peer sites and what one actually gets after taxation and bad debts are taken into consideration.
Peer to peer sites work like an online broker between ordinary individuals who have spare cash to lend and other ordinary individuals who could do with the spare cash, but are either unable to get a loan from a standard institution or are unwilling to borrow from one of the more expensive short term loans providers like payday loans.
Lenders who lend to individual borrowers through one of these sites are taking a bit of a punt with their cash because the interest they received depends on the borrow actually paying the loan back and even then fees and tax can wipe out some of the gains.
Although one of the advantages of peer to peer sites is that potentially the average lender should get a better rate of interest than from a bank, because the website cuts out the profits made by the bank, the disadvantage is that the lender faces a loss if the borrower defaults.
According to Giles Andrews, who is one of Zopa’s co-founders, the method used to tax the interest received on a peer to peer deposit is “unfair”. This is because the tax is calculated on the interest after the website’s fee has been taken out, but before any decrease due to bad debts.
As the latter can be quite substantial, the lender might end up with considerably less than they thought they were going to get based on the advertised rate on the company websites. In some circumstances, when a lender lends money to higher risk borrowers bad debt may almost cancel all interest out of the loan and the lender ends up with hardly anything.
Miyerkules, Abril 18, 2012
Understanding contractor umbrella companies
Compare umbrella companies since there are hundreds of umbrella companies in the market today each presenting unique and dependable services. Nonetheless, precisely how do you find the best? I'm gonna have you helpful points. Aside from getting umbrella company reviews to understand the most effective umbrella companies, you even need to examine the umbrella company yourself. One method even to compare umbrella companies is to gather facts in some internet websites, exactly look at the click here button for data to lead you into one umbrella company internet site. However of course, the main factor that we must get in examining umbrella companies is the cost that they charge and the basic customer service.
An umbrella company is a company undertaken by a service provider to manage timesheet processing and worker payrolls. One of their significant responsibilities is to compute the whole quantity an individual has attained throughout a particular duration. This includes the hours that a person has actually worked, levy deductions et cetera. After computing and managing all of the payroll services, the umbrella company will definitely then charge the specialist for the services rendered. It is a straightforward system that has certainly shown to be a significant favorite in the United Kingdom after the UK government introduced the IR35 tax regulations. And, due to the fact that it is such a massive hit in the UK, umbrella companies have sprouted left and right. To ensure that you obtain the most optimal business, it is best to compare umbrella companies first before making up your mind on one of them.
If you are a business owner in need of an umbrella company, it is best to compare umbrella companies initially. By asking your buddies, co-workers, past affiliates or relatives for any extremely recommendable umbrella companies that they recognize of, you might have a place to begin looking. However, if you come up with no companies to begin examining, then it is best to try to find the very best umbrella companies on the internet. And since the web has a whole lot to share with us individuals, you ensure to identify a listing of perfect umbrella companies for you to pick from.
There are a ton of umbrella companies listed on the internet. And, if you get lucky, you simply might be able to come across a detailed listing of umbrella companies online. If you do find this listing, then it will be a great idea to start and compare umbrella companies that you find. Check the summaries or breakdowns of their services and do not forget to look into their rates too. By gaining this data on the various umbrella companies out there, you can assure that the business you select is finest for you, your provider and your business's requirements.
When you start seeking an umbrella company on the internet, it might be wise to pick which services your business want the most. Just how far does their obligation go? When often do you want their services? These are merely a few of the questions that you must answer yourself. Now, when you have actually decided exactly how often you will definitely want their services, it might be time to compare umbrella companies. Once you have certainly done the contrast and you feel comfortable by having your option, begin asking the company some questions. By being open about your demands and requirements, the business will work even harder to obtain your approval and appreciation.
The cost must not be your only consideration when examining umbrella companies on the internet. Additional vital aspects to watch out for are the cost, the timesheet sites, the name, site and the track record of the business. So, when you chose to compare umbrella companies on the internet, ensure you have a pen and a piece of paper set by having you. By taking notes of the considerable distinctions between each company, you can easily identify the most effective umbrella companies from the lesser understood and lesser trusted companies. And, the moment you get hold of the most effective umbrella company online, you can be assured that all of your financial and payroll demands are in good hands. To discover more about umbrella companies, click this link or simply pay a visit to the website, umbrellacompanies.org.
If you are a business owner in need of an umbrella company, it is best to compare umbrella companies initially. By asking your buddies, co-workers, past affiliates or relatives for any extremely recommendable umbrella companies that they recognize of, you might have a place to begin looking. However, if you come up with no companies to begin examining, then it is best to try to find the very best umbrella companies on the internet. And since the web has a whole lot to share with us individuals, you ensure to identify a listing of perfect umbrella companies for you to pick from.
There are a ton of umbrella companies listed on the internet. And, if you get lucky, you simply might be able to come across a detailed listing of umbrella companies online. If you do find this listing, then it will be a great idea to start and compare umbrella companies that you find. Check the summaries or breakdowns of their services and do not forget to look into their rates too. By gaining this data on the various umbrella companies out there, you can assure that the business you select is finest for you, your provider and your business's requirements.
When you start seeking an umbrella company on the internet, it might be wise to pick which services your business want the most. Just how far does their obligation go? When often do you want their services? These are merely a few of the questions that you must answer yourself. Now, when you have actually decided exactly how often you will definitely want their services, it might be time to compare umbrella companies. Once you have certainly done the contrast and you feel comfortable by having your option, begin asking the company some questions. By being open about your demands and requirements, the business will work even harder to obtain your approval and appreciation.
The cost must not be your only consideration when examining umbrella companies on the internet. Additional vital aspects to watch out for are the cost, the timesheet sites, the name, site and the track record of the business. So, when you chose to compare umbrella companies on the internet, ensure you have a pen and a piece of paper set by having you. By taking notes of the considerable distinctions between each company, you can easily identify the most effective umbrella companies from the lesser understood and lesser trusted companies. And, the moment you get hold of the most effective umbrella company online, you can be assured that all of your financial and payroll demands are in good hands. To discover more about umbrella companies, click this link or simply pay a visit to the website, umbrellacompanies.org.
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