John Harris’ piece in the Guardian newspaper last weekend referenced a recent Chartered Institute of Personnel Development report, which suggested that many ‘new’ self employed workers are people “without skills, picking up whatever bits and pieces of work are available” and whose emergence “hardly suggests a surge in genuine entrepreneurial zeal.”

Harris commented on the well documented growth of self employed workers, but suggested that a large part of this workforce is “fraudulent”, citing “odd-jobbers” like taxi drivers, security guards, CCTV operatives and hairdressers.

In response to this opinion piece, the PCG’s MD John Brazier wrote a letter to defend the 1.6 million freelance workers in the UK. In what he calls a “rant on the self-employed” Mr Brazier said that Harris “should have looked beyond the report from the CIPD at the professionals from a wide variety of sectors, including oil and gas, engineering, information technology, management consultancy, marketing, telecommunications, pharmaceuticals, and the media.”

He continued, “These are men and women who consider themselves freelancers, self-employed, skilled and professional” and referred to a recent piece of research from Kingston University, which revealed12% growth for independent professionals in the last 3 years. He commented, “These are not vulnerable workers but drivers of economic growth in the UK.”

The PCG have long supported the role that skilled contractors and freelancers provide for the UK, and Mr Brazier summarised saying that while many skilled and talented individuals turn to freelancing due to the economic conditions, they offer a vital, flexible talent stream for UK businesses.

ICS are one of the leading contractor accountants and administration companies and have helped thousands of contractors working in a range of industry sectors. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

The group was formed in order to highlight the importance of the UK’s flexible workforce to the Government, as well as providing a way to pass on any recommendations to them. Their inaugural meeting involved discussion about the concepts of flexibility in the workplace versus flexible employment models.

Former Chief Executive of the British Chambers of Commerce, David Frost CBE, said it is an important time to be focusing on the flexible workforce, both for the country as a whole and for businesses on a smaller scale.

“The UK’s flexible labour market has long been acknowledged as a significant competitive advantage and a driver of investment and growth in this country. But with 2.6 million unemployed and the UK hovering close to a double-dip recession, it is more important than ever that we think critically about flexibility.”

“Employers are adopting a more flexible approach not only as a temporary retention strategy, but as a permanent and sustainable solution to more competitiveness.”

The REC’s Chief Executive Kevin Green also described the formation of the group, who will meet again on February 21st, as “a critical development in our work to champion flexibility as one of the UK’s key drivers of employment growth over the next decade.”

ICS are one of the leading contractor accountants and administration companies and have helped thousands of contractors working in a range of industry sectors. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

The main talking point in 2012 was of the Agency Workers Regulations, which eventually came into place in October after much speculation. These regulations brought the right to equal pay and other rights for all agency staff, thus having an impact on the way that some contractors operated.

Another legislation that has been heavily in contractor news this year is IR35. This legislation was reviewed earlier this year by the Office of Tax Simplification; they made a number of recommendations to the Government which eventually led to the formation of the IR35 Forum. This group are continuing to work towards a better approach to IR35. Alongside this HMRC were involved in a number of high profile IR35 contractor cases.

The PCG also held their 3^rd National Freelancers Day in November to celebrate the role of contractors and freelancers in the UK. They also used this celebration to announce their latest findings into the freelance community, revealing there are now 1.56 million workers in the UK.

2011 has been a successful year for ICS and all of our contractors, and we look forward to working with you all over the next year!

ICS are one of the leading contractor accountants and administration companies and have helped thousands of contractors working in a range of industry sectors. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

Reed Recruitment are one of many recruiters who are expecting a good start to 2012, particularly within the IT sector. Andrew Gardner, director at Reed Technology, believes that contract roles will be in demand due to businesses still being reluctant to take on permanent staff. He said;

“We’ve noticed more contract roles across the board. In the short term, I expect contract numbers to increase because some clients may be nervous about starting projects with permanents.”

He also commented that 2012 will show signs of “cautious recovery” but that IT roles would be critical to this, saying; “businesses almost can’t do without IT now. It’s not an optional service.” This should provide some confidence for contractors within this sector.

The PCG however, have reported that only 23.2% of their members are optimistic that they will enjoy a more successful business year in 2012. 37.4% said that they expect it to be similar whilst the majority (39.4%) said that they are expecting a challenging year.

ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations, such as the AWR. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

The REC have worked hard over the last few years in order to raise this issue of the importance of a flexible workforce and so this commission will only further help the group to pass their own, and their members, feedback to decision makers. This will create a platform for productive discussion on how best to develop the UK’s flexible workforce.

David Frost CBE, previously the director of the British Chambers of Commerce, will chair the group and he spoke positively of its aims; “Our flexible labour market is seen as one of the UK’s major competitive advantages. Quantifying the benefits to business and workers and identifying ways of enhancing this flexibility are the core aims of the Commission.”

“This initiative will not only drive forward the political debate, but will also develop practical solutions for employers on maximizing the benefits of flexible working arrangements.”

The REC’s Executive Kevin Green also commented on the role of the group and said that; “The Commission will take stock of the latest trends and innovations and will lead the debate on how Government can best ensure that, post-AWR, the UK continues to benefits from a dynamic and flexible labour market.”

ICS will continue to follow the progress of the Flexible Work Commission, and will report any updates following their first meeting in January.

ICS are one of the leading contractor accountants and administration companies and have helped thousands of contractors working in a range of industry sectors. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

Following the October IR35 Forum meeting, HMRC and the PCG both presented their views and ideas. After discussing the clarification of lower risk IR35 cases in October HMRC proposed amending their risk rules, and are aiming to focus increasing their compliance activity against higher risk cases being used to disguise employment.

The PCG also presented further information about any future IR35 business tests, which were one of the three original proposals earlier this year.  They announced that they are now looking at a ‘tiered test’ approach, which would require the use of particular indicators and HMRC data.

One of the action points for the forum’s next meeting in January was for HMRC to identify and agree on the indicators that define a business for the purposes of IR35. They also agreed to provide an update on the four main areas currently under discussion; these being the IR35 Helpline, Guidance, Risk and Review.

A full update of the IR35 Forum’s minutes can be found on the HMRC website.

ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations, such as the AWR. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

As well as the praise from the PM, the PCG also announced that new data from Kingston University has revealed that the number of freelancers in the UK has grown to 1.56 million (1 in 20 UK workers) from 1.4 million in a similar study in 2008.

This growth was well received by the PCG’s Managing Director John Brazier who said;

“The figures underline the steady growth in the sector in turbulent times, and confirm a widely held belief that more and more skilled and talented individuals are opting for freelancing as a work/lifestyle choice, or because of economic circumstances. Freelancers are offering industry and commerce a flexible talent stream when and where it is needed.”

As part of the NFD celebrations the PCG also hosted a ‘Fit to Freelance’ quiz, also hosted by ICS. The PCG reported that more than 1,800 people completed the quiz, revealing some interesting details about the knowledge of UK freelancers!

Only 8% of those who participated scored the top marks and achieved a ‘Grandmaster’ status, with 32% at a high mark and ‘Ninja’ status. Nearly half of the freelancers (49%) who took the quiz were mid-way at ‘Apprentice’ level, and quite a high number (11%) were only ‘Novices’. The quiz, designed to raise awareness about freelancing is still available to take part in (or re-take!) through the ICS website.

ICS are one of the leading contractor accountants and administration companies and have helped thousands of contractors working in a range of industry sectors. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

As part of the celebrations, the PCG who launched National Freelancers Day two years ago will be holding a number of events, ranging from a Freelance Lecture to a series of webinars. Companies across the UK may also be holding their own events to celebrate the day.

Our Managing Director, John Lyon, will be attending the Freelance Lecture in London today so if you are attending please introduce yourself. The lecture will feature leading experts discussing flexible working and workforce trends.

As part of the build up, the PCG launched a ‘Fit to Freelance Quiz’. With some tough questions, it tested just how much people knew about contractors, the way they work and the issues they face. You can test yourself by clicking here.

Freelancers were given a ringing endorsement by the Prime Minister David Cameron who said:

“I have a huge respect for all those who make the brave decision to branch out on their own and take control over the way they work.

This Government recognises the valuable contribution that freelancers make to the economy and, as more and more people choose to join your ranks, you have all our support.”

Stay connected with National Freelancers Day and the events today by liking their Facebook page or following #NFD23NOV on Twitter.

Hip Hip Hooray!

ICS supports freelancers, contractors and consultants by providing them with compliant payroll solutions. Led by our three guiding principles; trust, care and compliance, we help contractors focus on their strengths and enjoy stress free contracting. 

The PCG’s original Freedom of Information (FOI) request found that HMRC raised just over £9 million in IR35 tax between 2002 and 2008, however a subsequent FOI request by news site Contractor Calculator has found that between 2000 and 29,000 contractors ‘self-certified’ themselves as being inside IR35. This means that over the last 10 years they have paid a minimum of £920m, according to Contractor Calculator’s Dave Chaplin.

This additional, and substantial, sum of income tax and national insurance contributions outweighs the PCG’s arguments that “IR35 makes very little money for the Government” and commentators have said that it makes it the decision to retain IR35 earlier this year more logical.

The Government are however still working to review the IR35 legislation as it continues to be a burden to thousands of self employed workers. The IR35 Forum are due to meet later this month in order to continue discussion regarding the legislation.

ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations, such as the AWR. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

Speaking about the launch of the 80 page e-book, PCG Managing Director John Brazier said that the guide was a “must read for all freelancers”. He continued;

“It is the culmination of 10 years of problem finding and solving from everyone associated with PCG. Through our forums, members, associates and advisors this combines thousands of years of freelancing wisdom.”

“As a business support organisation we are asked these key questions daily and we have constantly challenged ourselves on the right information to give out. With this guide we have done the ground work so that freelancers can get on working with their clients.”

The PCG are planning a number of activities and events to celebrate National Freelancers Day, including on online quiz titled “fit-to-freelance?” ICS will once again be supporting the event in conjunction with the PCG, so keep an eye on our blog for more details.

ICS are one of the leading contractor accountants and administration companies and have helped thousands of contractors working in a range of industry sectors. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.