Demand for finance contractors rises

by Susie Hughes at 12:57 26/05/17 (News on Business)

The Brexit uncertainty has lead to a fall in work permits issued to non-EU accountants as hirers look to contractors to plug skills gaps, according to a firm of contractor accountants.

The number of work permits issued to non-EU accounting and finance professionals fell by 5.6 per cent in 2016 as organisations increasingly turned to contractors to plug skills gaps, according to statistics obtained by SJD Accountancy. Work permits issued to non-EU accountancy and finance professionals fell from 3,495 in 2015 to 3,300 in 2016. Despite the decline, the number of non-EU accountancy and finance professionals entering the UK to fill skills shortages is still 70 per cent above the level in 2010, when just 1,937 work permits were issued. The work permits were issued to non-EU accountancy and finance professionals filling a variety of roles, including chartered and certified accountants, financial accounts managers and taxation experts. Certainty Separate research shows that demand for accounting and finance contractors jumped by 57 per cent since the Brexit vote as hirers implemented recruitment freezes and looked to contractors to meet demand. Obtaining a Tier 2 visa and bringing in a non-EU worker requires a relatively high level of certainty that demand for the worker’s skills will be there in the medium to long term. Many organisations are likely to have thought twice following the Brexit vote and opted instead to engage contractors. Advertisement Derek Kelly, Chief Executive Officer of SJD Accountancy, said: “Demand for accounting professionals operating as contractors has strengthened since the Brexit vote as hirers became more reluctant to commit to permanent hires. Bringing in a non-EU worker entails a higher level of commitment and is something hirers are more likely to do when there is more certainty over future demand. Brexit uncertainty is likely to have persuaded some work permit sponsors to hold off and look to contractors to plug skills gaps.” “There is strong demand for accountancy and finance contractors in areas such as compliance, audit and tax. This is partly being driven by the profession’s supply side problem. Baby boomers are retiring or eschewing complex areas like tax, while the cutbacks made to graduate programmes and training during the downturn are still being felt. “Far from weakening demand for accountancy and finance skills, Brexit is likely to fuel demand as companies adapt their business models and grapple with the financial and tax implications.” ​Tax professionals The number of non-EU taxation professionals coming to the UK jumped by 12 per cent in 2016, as demand for tax skills continues to outstrip supply. The official Home Office numbers show that 365 non-EU tax professionals entered the UK in 2016, up from 325 in 2015, and just 220 in 2010. Derek Kelly said: “The shortage of tax professionals is particularly acute as businesses look to navigate increasingly complex and changing corporate tax laws.” “UK businesses are increasingly international and are more likely to have foreign subsidiaries, which means that they need to get to grips with country-by-country reporting requirements. HMRC frequently nets over a billion pounds per year from transfer pricing enquiries, so taxation experts with experience in this area are more sought-after than ever. This work is cyclical, requiring periods of intense activity, so is ideally suited for contractors.” Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2017

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