After ten years of campaigning, lobbying, hoping and fearing, the future of IR35, the 'disguised employees tax' has been decided by the Coalition Government- it is here to stay.

Chancellor George Osborne was given three alternatives by the Office of Tax Simplification: to suspend it with a view to abolition; retain it with improved administration by HMRC; or to introduce business tests.

In yesterday's Budget he gave his decision: IR35 will remain on the Statute Books and HMRC will improve their administration with such things as a helpline and targetted compliance activities.

Despite an admitted lack of solid information about the impact of IR35, the Chancellor decided to retain it as 'abolition would put substantial revenue at risk'. Initial reactions from many freelancers was a resigned 'better the devil you know'.

Recruitment Partnership have appointed a new consultant Tom Purrier to join their existing team. RP are experiencing a high level of demand and are still recruiting for additional consultants to maintain their growth and activity in new markets.

As part of our continued growth, and in response to the needs of our ever expanding client base on the South Coast, Recruitment Partnership is pleased to announce that they have just opened a new office on the outskirts of Southampton.

Recruiters Enjoy Jobs Growth

Permanent staff placements continued to rise in December but the rates of growth were slightly weaker than the three-month highs recorded in November. That is the overall verdict of the latest Recruitment and Employment Confederation and KPMG Report on Jobs.

Permanent staff vacancies increased at the sharpest rate in four months, while growth of temp vacancies accelerated to a six-month high.

Although the availability of permanent staff increased for the third month running in December, the latest improvement was only marginal and the slowest in that sequence. Correspondingly, permanent staff salaries rose at a stronger rate as employers competed for skilled candidates.

Kevin Green, Chief Executive of the Recruitment & Employment Confederation, said: “While these figures continued to show private sector employment doing well, the next few months will be very tough for the jobs market in the UK.

“With public sector cuts, the VAT rise and slowing economic growth, we expect to see businesses being much more cautious about hiring in the short term.

“We are delighted that the Government is saying it intends to be pro business, pro growth and pro jobs. We’ll wait to see the proposals in full but addressing the issue of one million young people under 24 not in education or employment is critical for the long-term success of our economy and must be a priority for the Government in 2011.”

Bernard Brown, Partner and Head of Business Services at KPMG, said: “The latest data suggests again that the UK job market is on the road to recovery as growth of permanent placements remained solid and demand for staff rose strongly.

“A look at the sectors indicates that the private sector is mainly responsible for the overall positive picture, with IT and computing as well as executive and professional staff most in demand.

“While demand has been strong, we are entering a critical phase for the UK job market with two big question marks. First, the impact of Government cut backs in public sector spend and employment, which should start to bite over the coming months. Second, the impact of the recent VAT increase and whether this will affect UK consumer demand and job creation.”

Jobs & Salary Growth Continues

The latest survey data for December 2010 from the REC and KMPG shows the UK job market is on the road to recovery, whilst also highlighting that permanent salaries are starting to rise.

RP have just made a key appointment to enhance their current growth. Alistair Lockhart has joined the team to spearhead expansion into new markets.

Britain is Hiring Again!
More than a quarter of all UK companies say they plan to take on more staff over the next 12 months, helping unemployment fall below the current rate of 8%The survey of nearly 700 companies by the Confederation of British Industry found 28% of firms were hoping to boost headcount, with 49% set to raise wages to around the level of retail price inflation.
In a further sign that the economic recovery is gathering pace, just 5% of the companies polled said they were freezing recruitment for the rest of 2010.
Last year more than two-thirds of companies questioned imposed a blanket ban on new recruits.