Member Article

As A New Year Arrives, We Ask: What Lies Ahead For Contractors In 2014?

2013 saw the British economy bounce back into something resembling good shape. Stability, steady growth figures and a robust confidence flowed around the UK’s financial centres as the recovery solidified into something very tangible indeed.

For contractors as well, 2013 was a good news year. To get a view of what 2014 might bring, we caught up with Stewart Davis, Group Commercial Director of tax advice and payroll experts PayMatters for his opinions on the 12 months to come: “We work with a variety of contractors across multiple sectors and the general vibe was overwhelmingly positive. Undoubtedly business performance has been solid and growth in sectors such as manufacturing has surprised even the most optimistic of analysts.”

“Looking at 2014, contractors can expect it to be another year rich in variety. We have the rapidly developing shale gas industry to look forward to. The Government is clearly mighty keen to get this nascent star of the UK economy up and running as soon as possible, so we expect many of our contracting partners and clients to be thoroughly involved with that market as it continues to open.”

“Indeed, the ongoing skill shortage in areas such as oil and gas, engineering, digital media etc will see contractors well-place to command higher rates as well as being in the position to cherry-pick work that most interests them.”

“However, on an administrational level, several new challenges could face the contracting community in 2014. The legislation to combat offshore umbrella schemes will come into being from April 2014. Contractors who are working for UK-based compliant employers will clearly be in a better shape than those who are still hedging their bets overseas.”

“Additionally, the taxman is likely to be a busy bunny, as ever! The number of reviews and investigations into IR35 issues, especially in the public sector, is something that many analysts looking at the contracting sector are expecting to see increase. So the name of the game is solid compliance to avoid a hefty fine if the HRMC come knocking!”

PayMatters are APSCo accredited, professional passport approved and are business partners with the Institute Of Recruiters (IOR). PayMatters pride themselves on being fully HMRC compliant from an employers and employees NI, PAYE and expense perspective.

This was posted in Bdaily's Members' News section by David Lomas .