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Contractors say the Government is not on their side

by Susie Hughes at 10:14 24/05/16 (News on Business)

Contractors working in IT or project management (PM) are not feeling supported by the Government, with only 17 per cent thinking the Government is on the side of contractors.

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. Advertisement Research by the Pulse Umbrella Group 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 Futcher, CEO of The Pulse Umbrella Group, said: “It’s hardly surprising that contractors don’t think that the Government is fighting their corner. 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. “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.” Referendum 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 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 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 said: “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.” 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 2016

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