Will changes to IR35 rules affect Small Businesses?

The Government proposes using criteria similar to the Companies Act 2006 (CA 2006) to define small business. Section 382 CA 2006 defines a small company. In brief, a company counts as a small company if for a particular financial year it meets two or more of the following conditions (see S382(3)):

1. Turnover – Not more than £10.2 million

2. Balance sheet total – Not more than £5.1 million

3. Number of employees – Not more than 50

If you sit outside of this, you will have to understand the IR35 rules and use an appropriate assessment tool to reach an accurate status decision. In 2017 the government introduced CEST which is an online tool. CEST has come in for some criticism and the government has committed to working with stakeholders to enhance the tool. More news with follow in Autumn 2019.

Uncertainty continues to weigh on making decisions

Uncertain outlook continues to dampen recruitment activity

• Latest data signalled that permanent staff hiring declined again in April, though the rate of reduction softened from March’s 32-month record and was only slight. Recruitment consultants widely commented that Brexit-related uncertainty had impacted on hiring decisions. At the same time, billings from the recruitment of temp workers rose at a quicker pace amid reports of firm demand for short-term staff.

• The index measuring overall vacancies edged down further in April, to signal the weakest increase in demand for staff since August 2012. The softer expansion in total vacancies was predominantly driven by a slower rise in permanent staff demand. 

Availability of candidates declines again in April

• A reluctance among workers to seek new roles due to uncertainty related to Brexit, as well as a generally low unemployment rate, led to a further decline in staff availability. That said, both permanent and temporary worker supply deteriorated at softer rates than in March.

• Greater competition for scarce candidates contributed to steep increases in pay for both permanent and temporary workers. That said, the rate of starting salary inflation was the softest seen for two years. In contrast, temp wages rose at the strongest rate since January. 

Regional and Sector Variations

London recorded the quickest drop in permanent staff appointments of all four English regions. In fact, the North of England was the only area to see an increase in permanent placements during April. On a regional basis, the North of England noted the quickest expansion in temp billings, closely followed by the South. The Midlands meanwhile noted the first reduction for just over seven years.

April data continued to point to subdued public sector staff demand compared to the private sector. In the public sector, permanent vacancies fell slightly, but rose marginally for temp workers. Demand for permanent staff in the private sector meanwhile rose at a softer, but still strong, rate and strengthened for temp workers.

IT & Computing topped the rankings for permanent staff demand, closely followed by Nursing/Medical/Care and Engineering. However, the majority of monitored sectors noted softer increases in vacancies. Retail noted a sharper decline. 

The quickest increase in temporary staff vacancies was again seen in Nursing/Medical/Care in April. Blue Collar and Hotel & Catering completed the top three in the rankings. In contrast, short-term vacancies fell in Executive/Professional and Retail.

My view and observations

It seems that the even though there is still a demand for permanent staff, the market appears to be slowing down and there is a developing Mexican stand-off between candidates and companies looking towards Brexit to know what their next move is.

Companies are still looking towards an Agile and flexible workforce and the UK economy is still strong and performing well. Companies are continuing to use interim resource to assist in the spikes in demand whilst there’s still a period on uncertainty and they look for solutions to deal with the eb and flow of these ever evolving times.

In short, whatever the outcome, we need to sort out Brexit in order to stabilise both company owners and employees. The inability to see and plan from one half year to the next or even the next quarter in some circumstances is beginning to hold people back.

Does anyone know what will happen after 30.03.19? (NO,not yet!)

After an informative round table meeting on Brexit with business leaders and Government Department representatives, please find a short summary and information sheet that may answer a few questions or provoke your thoughts. Please consider that this reflects where we are today is not final. It is however worth making adequate preparations and providing the right levels of support and raising awareness with employees, colleagues, friends and family. We all need to pull together!

Brexit – What the …

With an increasing number of questions being raised about a possible No Deal, please see the guidelines issued by the government on topics such as:

• Living in an EU country after the UK leaves the EU
• Applying for permanent residency in an EU country
• Third country family members joining you in an EU country
• Staying in an EU country with an EU spouse
• Working in an EU country without a visa and residency status
• Entering and working in the UK
• Travel around the EU with a British passport
• Travelling with pets to and from the UK
• Continuing education in the EU
• Recognising professional qualifications
• Paying for healthcare in EU countries
• UK state pension and benefits
• Personal pensions and annuities
• Occupational pensions
• Banking, insurance and other financial services
• Inheritance tax and wills
• Tax payments
• Driving licences
• Motor insurance validity
• Owning or renting property in the EU
• Voting in local elections in EU countries
• Family members in prison in an EU country
• UK nationals in the EFTA states

https://www.gov.uk/guidance/important-eu-exit-information-for-uk-nationals-if-theres-no-deal

(copy & paste link into your browser)

Automatic Enrolment Pension update

My wages are going DOWN, but my pension pot is going UP! How?

The question is, are you winning and is this helping you now? With pockets of uncertainty about what the next 6 months and beyond will hold for some people and naturally raising questions about whether or not people can afford this, the search for answers will be under the microscope on how best to tackle it.

Under workplace pension rules that came into effect in 2012, depending on your age and salary, your employer must automatically contribute a percentage of your earning into your pension every payday. Your employer is required make a minimum contribution and you must make up the difference; therefore, you and your employer must pay a percentage of your earnings into your workplace pension scheme.

How much you pay and what counts as earnings depend on the pension scheme your employer has chosen. Ask your employer about your pension scheme rules.

In most automatic enrolment schemes, you’ll make contributions based on your total earnings between £5,876 and £45,000 a year before tax. Your total earnings include:

• salary or wages
• bonuses and commission
• overtime
• statutory sick pay
• statutory maternity, paternity or adoption pay

Workplace pension contributions

From 6th April 2019, the minimum amount your employer is required to save into your pension pot will increase. If you and your employer currently contribute a minimum of 3% and 2% of your qualifying earnings respectively, then this will affect you.

Your contribution rate is rising from 3% to 5% and from 2% to 3% for your employer. This means each month you will get a total of 8% of your qualifying earnings paid into your pension savings pot. The increase is great news as it will help give you a more comfortable life in retirement.

If this development is going to trigger off your job search, please feel free to contact us at [email protected] . We are looking forward to speaking to you.

Blue Monday

Fact or fiction?

 Blue Monday 2019

January 21st… Blue Monday is a name given to a day in January (typically the third Monday of the month) claimed to be the most depressing day of the year. The concept was first publicised as part of a 2005 press release from holiday company Sky Travel, which claimed to have calculated the date using an equation.

If you’ve spent most of January feeling like you want to hibernate until the summer, here’s why…

What is Blue Monday?

Blue Monday is the term given to the one day of the year when Brits are supposedly the most miserable.

Thought up by psychologist and life coach Dr Cliff Arnall more than a decade ago, it considers variables such as weather conditions, debt, the end of Christmas, failed New Year’s resolutions and general low motivation levels.

Despite inventing what is quite possibly the most depressing formula in the world, Dr Arnall encourages people to at least try to look on the bright side of life this Blue Monday. In an interview with the Evening Standard:

He said: “Whether embarking on a new career, meeting new friends, taking up a new hobby or booking a new adventure, January is actually a great time to make those big decisions for the year ahead.” Every cloud and all that.

Why are we more likely to feel depressed in January?

In the same article, Dr Daniel, Clinical Director at London Doctors Clinic, lists the factors that contribute to our low mood in January: “The Christmas buzz and initial excitement of entering 2019 has been replaced by early mornings, grim weather and challenging resolutions, leaving some of us wondering how we can stay productive and positive.”

As the days get darker, and the more you wake up before the sun even rises, you might start feeling a persistent low mood or lack of energy. You may be struggling to concentrate and it’s possible you may even find less pleasure doing your usual activities.

“These symptoms could mean you’re suffering from Seasonal Affective Disorder (SAD), which is very common and can affect people from all walks of life.”

Is there any scientific truth to Blue Monday?

No – the concept of Blue Monday isn’t based on science, but an accumulation of different external factors common in the month of January which are likely to affect mood.

Mental health charities have often rejected the term ‘Blue Monday,’ arguing it trivialises those who are actually suffering from depression.

Last year, Mind wrote a statement in regard to Blue Monday on their website reading: “Here at Mind, we think [Blue Monday] is dangerously misleading. Those people who live with depression know that those feelings aren’t dictated by the date. Implying that they are perpetuates the myth that depression is ‘just feeling a bit down,’ something that doesn’t need to be taken seriously.”

How to beat the blues this January?

Do Dry January

“As well as being great for your overall health, Dry January can have a positive impact on your mood,” says Dr Daniel.

Once you quit the booze, you’ll notice your sleeping pattern improve and also experience an increase in energy levels. While many people find that alcohol can help them fall into a deeper sleep faster, this sleep is less restful, and less time is spent in a ‘deep’ slumber.

“On the other hand, days, where you don’t drink can lead to a night of much better sleep, making it much easier to wake up in the mornings – something that is surely beneficial in the dreaded back to work season!”

Eat your greens

“Whilst it can be tempting to stock up on carbs this winter, opt for leafy greens instead as these are rich in folic acid, thought to be used in the production of serotonin, which is a happy hormone,” says Dr Daniel. “Antioxidants and polyphenols in things like berries and dark chocolate can also help elevate your mood.”

Keep active

If you want to beat fatigue and general sluggishness, Dr Daniel recommends exercising regularly to keep those hormones happy.

“If you find yourself demotivated at work, do some deskercise or go out for a brisk walk at lunch time.”

Open those curtains

Whilst these dark mornings may make it seem like you literally never see the light of day, sunlight is a crucial mood booster.

“Even on a cloudy day, we need natural light to reset our circadian clock,” says Dr Daniel.

Weather

The bad weather in January can impact our mood

“As the days get darker, and the more you wake up before the sun even rises, you might start feeling a persistent low mood or lack of energy. You may be struggling to concentrate and it’s possible you may even find less pleasure doing your usual activities.

“These symptoms could mean you’re suffering from Seasonal Affective Disorder (SAD), which is very common and can affect people from all walks of life.”

“Invest in a light box and try sitting in front of it for 30 minutes to help boost your mood. There are also devices available which mimic natural sunlight and help your body gather energy to power your day ahead.”

Stock up on vitamin D

“Vitamin D is very important to maintain good mood,” explains Dr Daniel.

“We get it naturally from sunlight and store it in our skin. When we don’t get enough of it, it affects our mood. Taking good quality over the counter supplements can help sustain your energy levels for the day.”

Seek help 

Finally, Dr Daniel stresses that if you really can’t seem to shake your low mood, it’s important to ask for help.

“Considering speaking to your GP or even friends and family,” she says.

“Counselling, psychotherapy and medication can also be used to treat SAD. If you’re stretched for time at work, some private GPs offer video consultations, so there’s no excuse to struggle in silence.”

My View

If you can, do something to make you feel alive and it satisfies you. Great or small, as long as it is for you, that is all that counts. You know yourself better than anybody else so whatever makes you tick or you fancy giving something a go; give it a go! Only you can make it happen. #time4change

IR35 reform in the Private sector

If you’re a LTD company contractor, you need to take a look at the plan below to understand what is going on in the industry because it will affect you either this year or in 2020…

Key Timeline : Off Payroll (IR35) in the private sector

Governments intention to extend Off-Payroll to the private sector was confirmed in the 2018 Autumn Statement. This will have an effect on you if you run a Limited company and supply services that can or may be deemed within IR35…

Contractors need to be lobbying hard before the consultation in February 2019, and all the way up to the following summer when draft clauses will be published. It’s unlikely that draft clauses will be changed considerably, and once an announcement is made in the Autumn Statement in November 2019 the reforms are unlikely to be cancelled.

What will happen in 2019?

2019 will see an increase in wages, training budgets and the number of companies suffering from reported skills shortages

Predictions for 2019:

• Increasing Training budgets
• Increasing permanent basic salaries
• Increasing numbers in contracting jobs
• Increasing reports on skills shortages
• Increasing numbers of career contractors moving back into Permanent employment

In a recent survey of companies conducted by the REC, Half (49%) of UK employers who hire permanent workers expressed concern over the sufficient availability of candidates for permanent hire – up from 44% a year earlier. Unlike previous years, the UK is seeing record numbers of people employed and a growing demand for skills in Digital and Engineering disciplines.

Up to December 2018, the employment rate (the proportion of people aged from 16 to 64 years who were in work) was estimated at 75.7%, higher than for a year earlier (75.1%) and the joint-highest estimate since comparable estimates began in 1971.

These figures underpinned some of the challenges felt by employers in the second half of last year, the REC reported: The UK workforce (TOTAL EMPLOYMENT – PERMANENT AND TEMPORARY) increased by 396,000 (+1.2%) in the year to August–October 2018, with 428,000 more people (+1.8%) working full-time but 32,000 (-0.4%) fewer part-time workers. At 4,773,000, the self-employed worker component was 33,000 (0.7%) lower than in the same period last year. Similarly, the number of temporary employees was down by 75,000 (4.7%) year-on-year. As such, the annual increase in the total workforce was exclusively driven by a rise in permanent employment (+530,000).

This naturally raises the question around WORKFORCE CAPACITY – How much capacity is there in your organisation to take on more work without creating more jobs?

The REC states that more than three quarters (77%) of UK employers had either no surplus workforce capacity (35%) or such a small amount that they may need to take on additional staff if demand increased (42%), when surveyed in September–November 2018. While 23% of all UK employers had a fair or considerable amount of capacity, just 18% of Midlands employers suggested that this was the case. In contrast, 28% of London employers highlighted a surplus.

This is therefore contributing towards the lack of available skilled people because those people who are desired by companies, are now having to take on extra responsibility to cope with organic growth and demand. This in turn creates opportunities further downstream yet the talent is already taken up and being utilised elsewhere thus further amplifying the skills shortage.

So, which areas will be hit the hardest in 2019?  The REC asked, “In which job functions do you expect to find a shortage of appropriate candidates for permanent roles this year?” Half (49%) of UK employers expressed concern, this quarter, over the sufficient availability of candidates for permanent hire – up from 44% a year earlier. Regionally, 56% of employers in the Midlands anticipated skills shortages, compared with 39% of Northern employers. Nationally, concern over the sufficient availability of hospitality workers was the most acute.”

2019 is going to take off where 2018 left us. With Brexit around the corner, how will the demand and appetite for hiring be affected, Adecco recently asked over 1000 companies and concluded:

“Of the large proportion of employers who currently employ EU nationals, around half (48%) report an increase in their EU workforce expressing insecurity about their jobs as a result of Brexit. Interestingly, this insecurity was also shared by UK citizens at more than a quarter (26%) of organisations. Publication of the EU Settlement Scheme has gone some way to reassure EU workers, but only 28% of employers say it has helped their confidence in retaining EU nationals over the next two years.

Significantly, 90% of employers say the current migration proposals will not, or only to some degree, meet their needs for low or medium-skilled labour.”

An interesting period is upon us and will it be those who remain proactive and react decisively that will come out the other end victorious?

2018 saw a huge shift in the permanent market. Wages rose considerably for the first time in what may feel an eternity. Recent market news from the CIPD confirms:

While nearly half of employers (49%) say a pay increase in on the cards, almost as many (41%) say it is too hard to tell or that they don’t know. However, the proportion of employers predicting a pay increase has risen since the last quarter.

In response to recruitment challenges, around half of organisations have raised starting salaries (48%). Among those who are also experiencing difficulties retaining staff, a similar proportion (51%) have increased salaries in some capacity.  The REC also reinforces the fact when they asked: What changes have you made to your workforce in the past year? More than half (53%) of UK employers had increased staffing levels over the last year, including 60% of London employers. Additionally, 58% of UK employers had increased staff pay/earnings in the last twelve months. While 68% of employers in the South (outside London) had made such awards, just 52% of Northern employers had increased pay.

In addition, companies also saw the need to think differently about their workforce and how projects were delivered. There was a positive shift in recruitment channel management and direct sourcing yet there is still some way to go: While employers are increasingly reporting anticipated shortages of permanent and temporary/contract candidates, the proportion using talent pools/staff banks for permanent hiring (18%) was only marginally higher than a year earlier (15%). The proportion of employers of temporary workers doing the same for temporary/contract workers (21%) increased from 14% last year.

So how are employers trying to address the problem:

• Former employees & word of mouth
• Advertise on our own website
• Internal referrals
• People approach us
• Social Media & professional networks (e.g. LinkedIn)
• Online job boards (e.g. Monster)
• Recruitment agencies / Search firms
• Advertise externally in newspapers / trade / professional press
• Jobcentre Plus / Universal Jobmatch
• Talent Pools / Staff banks

You can see there is plenty of thought and imagination around how best to tackle the problem, so one solution is not providing a silver bullet and due to the nature of these challenging economic conditions, only those who have experienced something similar will have the experience and knowledge to help navigate the waters of uncertainty. What is best for you? Do you use all or any of the above? Whatever the circumstances, please contact [email protected] for your free 30-minute consultation and talent health check. We look forward to speaking to you soon and we wish you a prosperous 2019.

ITREC2.1

Redefining RAAS from Recruitment As A Sale to Recruitment As A Service

In our view Recruitment 2.1 is the next step in the Value Chain for Recruitment Companies. It builds on the current web platform of web-based initiatives and is characterised by greater collaboration between Recruitment Solution Providers and their customers.

There is an ever-evolving complexity of supply chains within talent attraction and recruitment process management which is disengaging and distancing great people away from each other. Imagine a world whereby an iterative process is governed only by those who are immediately involved in the hiring process. Imagine the simplicity of the communications, the interview process, the financial parameters, the timescales and possible red lines… Looks great doesn’t it? Well, the wait is no longer, 2.1 is here and it will become the standard within our industry.

Whether you are looking for a job or you are looking for someone to join your team, ITREC2.1 is designed to cater for your needs. It’s built around the foundation of simplicity and your timescales. Redefining RAAS from Recruitment As A Sale to Recruitment As A Service.

Introducing myself

About me

I form cost effective and meaningful Partnerships with organisations throughout England who seek to identify talent in the Technology and Leadership space to deliver business critical projects and programmes.

I take pride in working with Clients to identify and build the correct solution for their needs. I elicit their requirements, form an agreeable process and tailor a plan which meets your timescales, has the appropriate level of governance and ultimately embeds the natural steps to ensure a successfully executed project and campaign.

I thoroughly interview professionals and own part of the selection process for organisations, in order to help you reduce the amount of time and hassle spent on this critical part of the process.

Brands

• Contingency Recruitment
• Onsite Talent Attraction
• Recruitment Process Management
• Project Management
• Retained Search