News Articles…

Commenting on the latest employment figures released today by the Office for National Statistics the Recruitment and Employment Confederation's (REC) Director of Policy and Professional Services Tom Hadley says:

"The strength of the UK labour market continues to defy the doom-mongers. Employer confidence remains strong and the outlook for 2013 is generally very positive, although there are still legitimate reasons to worry about persistent levels of youth unemployment."

"The private sector continues to more than compensate for the public sector job losses and in some high demand areas starting salaries are inflating as businesses find themselves in a race for talent."

"When skills shortages emerge employers need to be flexible. Business demand for candidates in highly skilled areas like engineering, IT and management is outstripping the UK's current supply of qualified and experienced candidates. Bosses need to think about whether they could do just as well by talking on someone who shows potential if they can't find candidates with the years of experience they initially feel are necessary for a role. That change in attitude would also be good news for graduates and younger jobseekers."

Full guidance can be viewed http://www.rec.uk.com/press/news/2304

Government set to amend IR35 legislation to cover 'office holders':

The IR35 legislation was primarily designed to tax ‘disguised employment’ where workers receiving ‘payments from a client via an intermediary and whose relationship with their client is such that had they been paid directly, they would be employees of the client’.

Office holders previously outside the scope of IR35 formed a grey area of uncertainty for HMRC. In an attempt to curb this position and remove any opportunity for disingenuity, the Government aims to strengthen IR35 by including office holders for the purposes of tax - keeping in line with the Social Security legislation where IR35 is applicable to office holders for National Insurance purposes.

What is changing?

The Government will amend one clause of Chapter 8 of Part 2 of the Income Tax Earnings and Pensions Act (ITEPA) 2003.

“In Chapter 8 of Part 2 of ITEPA 2003 (application of provisions to workers under arrangements made by intermediaries), in section 49 (engagements to which Chapter applies), in subsection (1), for paragraph (c) substitute –

“(c) the circumstances are such that –

(i) if the services were provided under a contract directly between the client and the worker, the worker would be regarded for income tax purposes as an employee of the client or the holder of an office under the client, or
(ii) the worker is an office-holder who holds that office under the client and the services relate to the office.

So what does this mean for Freelancers and Contractors?

Payments for services provided by contractors/freelancers who hold an office holder position will be liable to PAYE and National Insurance irrespective of whether they work via an intermediary such as a personal services company or other third party.

Full article see: http://www.rec.uk.com/press/news/2269

Employers predict jobs growth for 2013:

A new survey from the Recruitment and Employment Confederation (REC) shows that more than half of employers are planning to hire more permanent staff in 2013.

According to the latest monthly JobsOutlook, a survey of 600 employers, the UK's jobs market is set to continue on a trend of slow growth during the 2013 with more than 50 per cent of employers looking to increase their permanent workforce and one in three planning to take on more temps.

REC dircetor Tom Hadley said: "At first glance the predicted growth in jobs for 2013 may seem at odds with recent gloomier news about lack of GDP growth."

"There are various factors influencing what's been termed this 'jobs puzzle'. The fact that wage inflation remains low is one reason that employers have been able to maintain or increase their workforce.

"Our latest data indicates that the robust performance of the UK labour looks set to continue. At a time of high profile closures on our high street, it is important to remember that a job creation is primarily fuelled by SME businesses."  

Full article: http://www.rec.uk.com/press/news/2292

New plans for Rochester airport: