Partner Article

Government not on contractors’ side

Contractors working in IT or project management (PM) are not feeling the love from the government, with only 17 per cent thinking the government is on the side of contractors. The research, by online accountancy and umbrella firm The Pulse Umbrella Group, surveyed over 150 contractors in the United Kingdom.

“It’s hardly surprising that contractors don’t think that the government is fighting their corner,” says Chris Futcher, CEO of The Pulse Umbrella Group. “The government seems to be more interested in adding red tape and reducing the financial incentives to become a contractor, rather than encouraging this flexible and often highly skilled part of the UK workforce, which many industries rely on.”

April 2016 saw changes to the rules around when some contractors could claim for travel and subsistence costs as well as a new dividends tax regime. And while these changes will generally reduce contractors’ take home pay, remuneration is not the primary motivation for these workers.

The Pulse Umbrella Group research found that for over a third of IT and PM contractors (34 per cent), the main reason they choose this way of working is that they like being their own boss. A quarter choose to contract because they get better take home pay and almost one in four (23 per cent) are drawn to the more varied work on offer. The remainder contract due to a lack of full time roles.

Chris says: “These figures show that making money is not the be all and end all for contractors; there is a lot more at play than cash. Contracting roles can be challenging and stimulating; being able to choose where and when they work is very appealing for many flexible workers.”

When it comes to June’s referendum on whether to stay or leave the European Union (EU), 44 per cent of respondents think it would be better from the point of view of contracting opportunities for the UK to remain in the EU and 20 per cent think it would be better to leave the EU. Almost a quarter (23 per cent) don’t think it would make any difference to them, with the remainder saying they don’t know which would be better.

The research also found that almost two in five (39 per cent) IT and PM contractors are concerned that companies will introduce blanket pay cuts or ‘take it or leave it’ changes to contracting terms in the future. But despite this, the majority are feeling positive about demand for their skills over the next 12 months, with 58 per cent of respondents feeling very confident or confident. This confidence is reflected in the fact that 33 per cent of respondents would not consider going permanent in the next 12 months, even for the right role.

Chris adds: “Despite contractors having to put up with what seems like HMRC constantly changing the rules of the game, they continue to soldier on bringing huge value to the UK economy. It’s time to recognise that many of the UK’s important infrastructure and technical projects would not be possible without contractors and that this sector of the workforce should be encouraged, not attacked.”

This was posted in Bdaily's Members' News section by Editor .