Partner Article

Contractors feel unfairly targeted by the government

New research from contractor specialists Contracting Scout has found that contractors are feeling under fire from the government. Their Contractor Confidence survey found 60 per cent of respondents think the government is discouraging contractors and would prefer them to become permanent employees. Only eight per cent think the government values contractors as an important part of the workforce.

Contractors feel more appreciated by the business sector, with 46 per cent thinking that they’re valued as an important part of the workforce. However, 18 per cent still feel the business sector discourages contracting.

Will Ryles, Head of Recruitment at Contracting Scout, comments: “It’s little wonder that contractors are feeling the government is trying to push them out of contracting. April 2016 saw new legislation come into force restricting travel and subsistence tax-relief for some umbrella or limited company workers inside IR35, as well as changes to the way dividends are taxed.

“The Autumn Statement is expected to reveal further details of the proposed changes to IR35 in the public sector. Contractors have enough to deal with without constant tax changes. There seems little appreciation for the fact that contractors provide flexibility and specialist skills that businesses and the public sector would not otherwise be able to access.”

Just over a quarter (26 per cent) of contractors believe the UK leaving the EU will make it more difficult to get work, but 11 per cent think it will make it easier for them to get work. Thirty-seven per cent don’t think it will make any difference to them and a little over a quarter (26 per cent) don’t know what effect it will have.

Mr Ryles of Contracting Scout, adds: “Despite the mood of economic uncertainty in the UK, 44 per cent of contractors in our survey still plan to increase the rates they charge over the next 12 months. Forty-eight per cent will leave their rates as unchanged but seven per cent plan to reduce what they charge. This resilient part of the workforce is very much focused on just getting on with the job for their clients.”

When it comes to looking for their next role, the most popular route for contractors is to use a recruiter, with 40 per cent opting for this. Thirty per cent choose to use jobs boards and just over a quarter (26 per cent) rely on their own network of contacts.

“Recruiters remain an ever popular way for contractors to find their next role and this is what recruiters should be concentrating on as that’s where they add value and generate their fees. However, if the proposed changes to the intermediaries legislation in the public sector go through in the current form, recruiters, along with the public sector body and other third parties paying the contractor, will bear responsibility for ensuring the contractor does not fall under IR35. It doesn’t make sense for the government to impose strict legislation on the people who can play a significant role in helping contractors drive economic growth in the UK,” finishes Mr Ryles of Contracting Scout.

Contracting Scout is a new resource for contractors and recruiters. It offers contractors everything they need in one place, including a CV listing service, accountancy support, payment options, mortgage assistance and insurance solutions. Real people are always available to help with questions. Recruiters can submit contractor vacancies to the jobs board for free and there is a database of contractor CVs to search.

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