2014 has, so far, been generally positive for contractors. The economic recovery has created a demand for skilled workers which is met in large part by contractors particularly those with specific skill sets.
On the downside 2014 has also seen more legislative changes within the industry. The onshore employment intermediaries' legislation, which came into effect on 6 April, made agencies liable for the PAYE and National Insurance contributions where they cannot evidence to HMRC that the contractors are "genuinely self-employed" workers. Under the new rules this is hard to do and many contractors have been asked to switch to PAYE solutions to mitigate the risk.
With industry legislative changes such as these, what can we expect to see in the future?
- In your opinion, what are the dominant trends in the industry and what trends do you anticipate in the future?
"We have seen a marked increase in contractor numbers over the last 12 months and the growth is set to continue. From our perspective it is as a result not only of the market picking up but also of agencies reducing PSLs to work with trusted partners only. The introduction of onshore, offshore and LLP regulations in April will consolidate the position further.
We believe the attraction of freelancing to the younger generation (who want more autonomy, holidays etc.) will drive contractor numbers further in the future. Young people will look to move around to improve their CVs and to achieve higher charge out rates. This can only be good for the temporary labour market."
Therefore, it is apparent that the demand for contractors shows no sign of slowing. As workers desire a more flexible way of working, the contractor career path will become increasingly popular. Because of this, it is key for contractors to ensure that they are up to date with legislative changes to ensure that they are operating in a compliant manner.
PayStream is here to help! Our in house team of experts remain at the forefront of industry changes in order to ensure we always provide the most reliable and up to date advice.