Contractors' Questions: Why's employee tax due on self-employment?
Date: 11th June 2015
Graham Jenner, a Director at No Palaver recently was featured in a Contractors Question Time at Contractor UK Limited. Contractor UK Limited provides services for UK contractors.
Advent of major rail construction projects helps push workers' pay up by 74% in three years
Date: 5th March 2015
• Pay for railway workers highest of any construction industry segment
• Good news for contractors as skills in high demand
The advent of major rail infrastructure schemes such as Crossrail and HS2 has helped push pay for those working in railway construction up by three quarters in three years, says NoPalaver Group, a leading provider of accounting services to contractors.
Figures show that the average pay for construction workers on railways and underground lines increased by 11.6% last year to an average of £856.50 per week. This is 74% more than in 2012, when the average weekly salary was £492.40.
UK creates 15,000 new IT companies in just a year as UK's 'app economy' grows
Date: 12th January 2015
• Increased investment from financial services into 'FinTech'
The number of IT companies in the UK has jumped by 15,000 in the last year, rising from 306,000 in 2013 to 321,000 in 2014, as the boom in 'app' and 'FinTech' companies drives business creation, reveals research from NoPalaver Group, a leading provider of accounting services to IT contractors.
NoPalaver says that Google estimates put the contribution of the 'app economy' to the UK at £4 billion, expected to rise to £31 billion by 2025*, and that the sector is set to attract increasing numbers of entrepreneurs and venture capital investment.
Umbrella companies remain best option for construction contractors
Date: 1st December 2014
Unions protesting against use of umbrella companies – but they are picking the wrong target
More transparency from umbrella companies on costs could help the situation
Lobbying by the construction workers' unions against umbrella companies is misguided, as they provide the best option for freelance construction workers to manage their tax affairs, says NoPalaver Group, a leading provider of accounting services to contractors.
NoPalaver expects increased criticism of umbrella companies after a parliamentary meeting and protest on November 26th against the use of umbrella companies and the impact this model has on construction workers, organised by the Union of Construction, Allied Trades and Technicians (UCATT) and Unite.
Growing 'app economy' creates 7,000 new web developer jobs in a year – up 11%
Date: 12th November 2014
Record high of 847,000 IT professionalsstrong>
Recovery unlocks budgets for IT investment and expansion
The number of web design and programming jobs in the IT sector has risen by 11%, from 63,000 in 2013 to 70,000 this year*, as businesses invest increased amounts of resource and capital into the 'app economy', says NoPalaver Group, a leading provider of accounting services to contractors.
HMRC tax yield from investigations into construction companies hits record £131m
Date: 8th October 2014
HMRC now also targeting employment intermediaries
HMRC's yield from tax investigations into the construction sector jumped by 7% to a record £131 million last year*, up from £122 million the year before, says NoPalaver Group, a leading provider of accounting services to contractors.
NoPalaver says that HMRC's crackdown on construction companies paying their workers as self-employed and not PAYE is part of its wider effort to boost its tax revenue through compliance work. It sees the construction sector as an easy target to generate more revenue.
Labour Party proposals to clampdown on umbrella companies risk creating more confusion in temporary employment market
Date: 25th September 2014
Umbrella companies provide important service by collecting tax on income in a way that is easy for HMRC to administer
Plans announced by the Labour Party to clampdown on umbrella companies risk damaging the UK's flexible labour market and could make it harder for HMRC to collect tax on income, warns the NoPalaver Group, a leading provider of accounting services to contractors.
Umbrella companies provide payroll services to contractors who are working for a business through a recruitment agency. Umbrella companies are helpful because they allow contractors to share a back office and accounts function, making it simpler for HMRC, recruitment agencies and businesses to process their pay and tax.
Calls for HMRC to allow IT contractors 'Time To Pay' in tax avoidance case
Date: 2nd September 2014
• Thousands owe average payments of £11,000 in £430m offshore loans case
HMRC should allow contractors caught in its crackdown on 'contractor loan' tax avoidance schemes to negotiate payment terms under its 'Time To Pay' system, says NoPalaver, a leading provider of accounting services to contractors.
NoPalaver explains that HMRC announced in July that it was giving 16,000 users of a complex £430 million corporation tax avoidance scheme involving offshore loans six months to pay tax and interest charges it says are due, or risk further charges and penalties should the dispute go to court.
Construction vacancies up 36% in a year as surging house prices spark house building boom
Date: 25th July 2014
New HMRC rules on "false self-employment" not expected to have significant impact on the number of self-employed workers in construction
Vacancies in the construction sector have soared with a year on year increase of 36%*, as rapid house price growth has prompted house builders to rush forward with new building starts, says research from NoPalaver, a leading provider of accounting services to contractors.
Construction Companies are at Risk of Hefty Tax Bills
Date: 20th June 2014
Construction companies are at risk of hefty tax bills because some providers of payroll services are passing the buck in the wake of recent HMRC rules on 'False self-employment'
HMRC introduced new tax regulations in April to tackle what it saw as the exploiting of self-employment for tax purposes when workers are not genuinely self-employed. These changes were particularly targeted at what HMRC perceived as "false self-employment" in the construction sector.
46% jump in number of vacancies in construction industry
Date: 28th April 2014
A year on year increase of 46% in the number of vacancies in the construction sector means that the industry is well on track for a healthy performance in 2014, says NoPalaver Group, a leading provider of accounting services to individuals working as contractors.
NoPalaver says that there were 19,000 vacancies in the construction industry in the quarter December 2013 to February 2014 compared with 13,000 in the same quarter of the previous year and 11,000 in December to February 2012.
Big jump in number of IT companies as UK strengthens global position as tech hub
Date: 21st November 2013
The number of IT companies has rocketed in the last two years as the UK strengthens its position as a major tech hub, says NoPalaver Group, a leading provider of accounting services.
There are now more than 300,000 businesses operating in the information sector * – over 37,000 more than at the same time two years ago.
This 14% increase far outstripped the all-industry average of 8% growth in the total number of enterprises in the same period.
Recent jump in the number of construction workers suggests the sector is finally turning a corner
Date: 9th October 2013
A jump in the number of contractors being hired by the construction sector shows that renewed optimism in the sector is finally feeding through to new jobs in the sector, says NoPalaver Group, a leading provider of accounting services to contractors.
NoPalaver says that the number of individual contractors employed in the construction industry has jumped by 6,000 in the last three months alone, up from 269,000 to 275,000 (June 30 2013).
Recent growth figures may provide renewed optimism, but the construction sector is still far from full recovery
Date: 2nd September 2013
Recent growth figures may suggest a glimmer of hope for the construction sector, but there is still a long way to go before the sector is firing on all cylinders, says NoPalaver Group, a leading provider of accounting services to contractors.
NoPalaver says that fluctuations in the number of individual contractors within the construction industry show the extent of the instability in the sector over the last two years. The number of individual contractors fell from a peak of 294,000 in December 2011, to 289,000 in March 2012 and fell further to 269,000 in March 2013.
UK IT workforce reaches all time high
Date: 29th July 2013
The size of the UK's IT workforce has bounced back from recession and is now at its highest level since records began in 1978, says NoPalaver Group, a leading provider of accounting services to contractors.
The total number of self-employed and employed UK IT workers has reached 719,000* up 11% in just 12 months.
NoPalaver explain that is a 30% increase from 555,000 that the IT workforce fell to in March 31 2010 after the savage job cuttings of the recession.
Contractors stuck in mortgage famine since credit crunch
Date: 3rd June 2013
Contractors still face unfair treatment from banks on mortgage applications over five years after the credit crunch, says NoPalaver Group, a leading provider of accounting services.
NoPalaver says that despite a recovery in the mortgage market since the financial crisis, banks are failing to recognise the improved earnings capacity of contractors.
According to NoPalaver, this is a growing problem as the number of self-employed people has increased by 10% since the start of the financial crisis. Contractors now make up 14% of the UK's workforce*.
HMRC tax yield from construction sector compliance investigations jumps 18% in one year
Date: 28th March 2013
HMRC's yield from tax compliance investigations in the construction sector leapt 18% to £78.9million last year from £66.9million the year before, says NoPalaver Group, a leading provider of accounting services to contractors.
HMRC's yield from tax compliance investigations into the construction sector last year was the highest in the last five years (see graph below).
NoPalaver says that HMRC's construction sector crackdown is part of a wider effort to boost tax revenue through compliance work, and that HMRC has targeted the construction sector as it is seen as an easy target.