PCG defends NHS limited company contractors
The Daily Mail recently published an article which ‘revealed’ than 2,400 NHS staff were taking advantage of a ‘tax dodge’, and are being paid via their own personal service companies, rather than the public sector payroll.
Contractors’ organisation, PCG, quickly pointed out that to suggest that limited company contractors working for the NHS for six months or more were doing so illegitimately “shows a fundamental lack of understanding of how projects are delivered to large organisations.”
Chris Bryce, the group’s CEO, was forced – once again – to correct tax figures quoted by the press whenever this type of story is published.
Typically, mainstream press articles state that contractors pay just 20% tax on their income (via Corporation Tax), however they almost always fail to mention that the individual contractor will also pay personal (income / dividend tax) on their company’s post-tax earnings.
“To suggest Personal Service Companies enjoy preferential treatment over any other business when it comes to paying their fair share of tax is quite frankly, rubbish.”
Investment in new technology up, skills shortages rising
The latest edition of the Harvey Nash CIO Survey, which takes into account the views of over 3,000 global technology leaders, shows that more firms are injecting funds into new technology than at any time since 2006.
46% of CIOs have a higher budget than they did one year ago, and the majorty of new projects are aimed squarely at revenue generation, rather than revenue maintenance, or cost-cutting.
Unsurprisingly, this increased confidence is also leading to skills shortages in main regions. 60% of respondents to the survey reported skills shortages, compared to 45% in last year’s survey.
There were variations between regions – with 76% of CIOs in Asia concerned about skills shortages, compared to 59% in the UK, and 50% in Australasia.
Read the full summary here.
Umbrella clients confident about job prospects
Parasol recently polled its sizeable client base to find out more about what it’s life being a contractor in 2014.
The latest edition of the firm’s Contractor Barometer Report found that confidence is returning to the contracting industry.
According to the report, the vast majority of respondents felt more confident (47%), or ‘the same’ (44%) as they did 12 months ago. Umbrella contractors in IT and engineering were the most bullish about their future prospects.
You can view an infographic containing the key findings here.
HMRC announced record haul from ‘tax dodgers’
The Government’s tough approach to tax avoidance appears to be paying dividends. HMRC secured just under £24bn in additional revenues last year as a result of targeting people and businesses who failed to pay their taxes.
The total figure, which is up £9bn on three years ago, includes an £8bn yield from large firms, and £2.7bn from the clampdown on tax avoidance schemes.