IT contracting confidence up, giant survey suggests
 

Confidence within the IT contracting community is up year on year, that’s according to recent research by professional umbrella employment provider, giant group.

 

Results of its latest contractor survey of IT specialists point to increased confidence in the temporary market. Compared to figures over the last two years, the length between assignments is reducing, with the majority (82%) citing less than 31 days. In comparison, those recording 90 days and above has halved since 2011.

 

Added to this, over half of respondents are expecting job opportunities in IT to grow over the coming year and a further 64% predicting their earnings will increase. The survey also suggests that the top sectors for IT contracting opportunities over the next 12 months will be Support Services (26%), Financial Services (19%), Public Sector (14%) and Engineering & Construction (12%).

The UK economy looked set to grow faster this year than even optimists had expected after data on the services sector that one economist called 'show-stopping' today.

The sector, which accounts for 78 per cent of the economy, grew at its fastest pace in more than six years last month, suggesting overall growth in the third quarter will be higher than expected. The purchasing managers' index leapt to 60.2 in July from 56.9 in June, its highest level since December 2006.

'Although an early call on one month's data, the forward-looking elements from the survey point to a further strengthening of GDP in Q3 as the UK heads towards "escape velocity" and self-sustaining economic expansion,' said Paul Smith, senior economist at survey compilers Markit.

IT hiring continues to grow faster than other job categories

IT hiring continues to grow faster than other job categories and the U.K. economy as a whole, finds KPMG/Recruitment & Employment Confederation study.

This was the second month in a row that IT led the country’s job market, the study said,contrasting the rise in demand for technologists versus that of other categories like hotel and catering, engineering/construction, and nursing/medical care.

According to tax and accounting group Bloomsbury Professional, HMRC opened 193 new investigations compared to 59 in the previous tax year.

This is very much in line with the government’s promises to crackdown on tax avoidance made in last year’s Autumn Statement, a stance that looks certain to be maintained following yesterdays’ Budget.

IR35 is tax legislation that allows the government to tax freelancers – who may work using ‘personal service companies’ – as though they were disguised employees of their clients. The legislation is designed to prevent freelancers paying lower tax rates and National Insurance on earnings when HMRC thinks they are really an employee.
Despite HMRC’s crackdown, so far the 193 new investigations have failed to turn up any compliance failures.

Martin Casimir, managing director at Bloomsbury Professional, says: “It is a common misconception that people only use personal service companies to avoid tax. For some individuals with more than one employer or for those working on a temporary basis, registering as a personal service company is a legitimate way to work.”

Job Market News: January 2013
UK jobseekers have the highest number of new opportunities at their disposal since 2009, according to the Reed Job Index, as the jobs market ended 2012 at its strongest for three years.

Highlights:
· Final quarter of 2012 strongest for vacancy numbers since 2009
· All UK regions offering more opportunities than in 2011
· Caution consistently giving way to optimism among employers

Grey Power is here to stay

Last Friday was the final day that employers in the UK could force workers to quit just for being 65. Prior to April 2011, employers could give workers between six and 12 months' notice of intention to force them to retire.  The abolishment of the Default Retirement Age (DRA) means the choice of when to stop working has been put in the hands of older workers themselves.   For those who want to keep working past 65, this is a positive development.