September Contractor News Round Up

Your monthly round-up of September’s top contractor news.

HMRC stalks Sanzar loan scheme contractors

A number of contractors who took pat in freelance work in the UK via offshore vehicles are being approached by HMRC, which is hitting them with UK income tax assessments designed to boost its low yield from such Employee Benefit Trusts.

To advisers have confirmed that the tax assessments, from between 2008-2010, are being received by UK based contractors due to their use of an EBT from Sanzar Solutions.

Contractors to benefit from fresh PCG strategy

The first in a line of good news for contractors this month, as it was revealed that contractors will benefit from greater representation, an elevated media profile and new membership benefits as a result of a new PCG strategy.

The Professional Contractors Group is implementing a fresh strategy, as they see freelancers and contractor as a vital element of the UK’s economic recovery.

BIBA reaffirms code commitment

BIBA says that it will give more consideration to developing and producing a code of conduct, after a strategic review found that members would like the association to ‘play more of a role in driving up the level of professionalism’.

Freelancing careers become more desirable

Whilst it may be news from across the pond, it’s great to hear that freelancing jobs are becoming more desirable. It’s a bit of a sweeping generalisation to say that what happens in America will happen over here, but hopefully it will be a sign of things to come in the UK too.

Apparently 30% of the US workforce is freelance, totaling a massive 42 million workers.

Contractors help 79% of organisations to meet strategic objectives

Good news for the sector, as it has been revealed that contractors now help 79% of the UK’s client and employer organisations to meet strategic objectives.

The report brings more good news; as over a third of clients plan to increase their contractor use over the next quarter, showing a hugely positive change in the sector.

HMRC investigations yield from SMEs up a third

New figures released this month revealed that an increased focus on small and medium-sized businesses is proving fruitful for the Revenue’s teams, with overall investigation income from SMEs up to £565m in 2012-2013. This was up from £434m from the previous year, totalling a rise of 31%.

Contractor demand at twelve year high

Results were released this month, revealing that during August 2013, contractor demand reached its highest level since December 2000. This saw the fourth consecutive month of growth in the industry, and agency billings grew at the strongest rate in fifteen y

August Contractor News Round Up

Your monthly round-up of August’s top contractor news.

Small and Medium enterprise interest in freelancers is growing. The appeal of a short-term solution without having to shell out large employment costs. Hiring freelancers is becoming much more cost-effective for the companies. A report for the second quarter of the years shows that rises in specific industries ranged from 9.2% (logo design) up to a whopping 23% in the accounting sector. This shows that the self-employed are increasingly permanent fixtures in the everyday lives of some businesses. Read more…

Contractors are soon to have a say on their benefits and expenses. A report published by the Office of Tax simplification has identified ‘quick wins’ on how expenses and other tax dispensations can be dealt with. It reports that the P11D form and filling process will be subject to further work as it is known to be widely misunderstood. There will also be a ‘wholesale review’ of the current benefits and expenses.  The chair of the Association of Recruitment consultancies, Adrian Marlow said: “…Simplification of the tax system would probably result in removing the risk for agencies relating to the more extravagant tax avoidance schemes currently on offer. Therefore, this review can only be good for agencies, workers and the recruitment industry in the long run.” Read more…

According to a new jobs report, contractor vacancies in Scotland have reached a 31-month high. The decline in contractor availability paired with billings rising at their slowest pace since March of this year points toward an emerging skills crisis in Scotland. This means that there are just not enough suitably skilled contractors to meet demand. The biggest rise in demand and fall in applicants was seen in Aberdeen and its oil and gas industry, confirming that the industry is booming but the availability of skills is not. Read More…

HMRC have created a new scheme designed to help small companies and contractors/freelancers with their tax disputes. Following a two year trial HMRC have created a national team of trained facilitators to help resolve disputes using the ‘Alternative Dispute Resolution Service’. For a while now the service has helped businesses and individuals in disputes by being the middle man and helping each party understand each other and decide on an agreement.  Richard Summersgill HMRC’s Director of local compliance said: “Evidence has shown that by using the simple ADR service many disputes can be significantly shortened and resolved without recourse to Tribunal.” Read more…

July Contractor News Round Up

Your monthly round-up of July’s top contractor news.

Contractors face new “single compliance process” (SCP) from HMRC

HMRC have been developing SCP which they describe as a single framework in which the majority of future small and medium enterprise business compliance checks will be undertaken, catering for both single tax and cross-tax enquiries. HMRC hopes that SCP will:

  • reduce customer burden by reducing the time taken to complete enquiries
  • focus the intensity of the enquiry so that it is proportionate to the risks identified – concentrating on the rule breakers and potential rule breakers
  • improve the quality and consistency of enquiry work across SME

HMRC ramps up prosecutions for tax evasion among middle class contractors and professionals

In the 12/13 year there were 617 tax evasion prosecutions compared to just 302 the previous year. HMRC’s target in 12/13 had been 565 successful prosecutions. “In the space of just one year, HMRC has massively ramped up the numbers of cases it takes to the criminal courts in order to clamp down on tax evasion,” tax law specialist Jason Collins of Pinsent Masons said. He also stated that those being targeted aren’t those that owe large amounts of money but more likely were “people like doctors, dentists, lawyers, construction contractors and restaurant owners who have not declared amounts in the tens of thousands.” Collins also warned that HMRC is set to ramp up its criminal prosecutions for tax evasion over the next few years. Its target number of prosecutions for 2014/15 is 1,165.

Contractors in extractive sector likely to see a boost after Government measures

Recently announced government measures and consultations mean that UK shale gas exploration will accelerate. The measures include a tax package, community benefits and planning to help kick start the shale gas exploration. Obviously we’ve also seen a lot of issues with the shale exploration with the Balcombe protests over the negatives associated with fracking and worries over how it will affect the British countryside.

Service sector booms as UK heads toward recovery

New figures released show that the service sector (which includes freelancers and contractors) had recorded its best month since the beginning of the financial crisis in the beginning of 2006. This news helps to cement the fact that the UK is returning to economic growth. The sector growth is tracked by the PMI and the figure for June was 56.9 but leapt up to 60.2 in July. See the graph below, or for more info click the title link.

 

 

Meet The Kingsbridge Team – Lauren Costello, Client Services Advisor

As promised, here’s the next installment in our ‘meet the Kingsbridge team’ series.  Our next victim participant is Lauren Costello, champion show-jumper and future zoo keeper.  Thanks for taking part Lauren.

Name: Lauren Costellolauren

Role:Client Services Advisor

How long have you been working with KPSOL?

Since November 2011

What does your job role include?

I speak with at least 50 people a day on the phone as well as responding to email enquiries.  Most of the conversations I have are with freelancers and contractors who are interested in the KPSol insurance package and either want to put a policy in place or have questions about the cover levels and whether it’s the right policy for them.

I also work with some of our business partners.   Often accountancy firms are keen to ensure their contractor and freelancer clients have the necessary insurance in place and many recruitment agencies insist on it before they’ll add them as candidates.  KPSol works closely with them to help them provide an end to end service.

What did you want to be when you were younger?

A famous show jumper, a vet or a zoo owner (I’d actually still like to own a zoo)

What do you enjoy most about your job?

Making a difference for a client is important to me and when I can do that I get a real buzz.  I also count myself as lucky to work with some brilliant people so just being in the office is enjoyable, even if I’m having a tough day.  We have a lot of fun.

What has been the highlight of your career?

Last year I went to the Gastech exhibition at ExCel in London.  One of our specialisations is in providing cover for Oil and Gas professionals and this is a huge, global event for the industry.  It hadn’t been held in the UK for 40 years (it’s in South Korea next year!) so I was really lucky to be able to attend and meet so many people in the industry.

What is your favourite thing about the company and what makes them different to work for?

The company has grown quickly over the last few years and it’s given opportunities to and invested in a young team (myself included) and it continues to do that.  Although traditionally the Client Services team would probably be referred to as a call centre, we’re encouraged not to be robotic, to build a real rapport with our clients.  We’re involved in planning and agreeing processes and we have regular communication from senior management around strategy and developments in the business.

What do you enjoy outside of work?

Horse riding and watching the rugby.  I’m also a cinema addict!

Tell us an interesting fact about yourself

When I was younger I won the regional Jump Cross event on my horse, it’s a mixture between show jumping and cross country.  I was also on a TV show with Eddie Izzard once, I can’t remember it though!

Any advice you could give to someone looking to get a job in a similar environment?

You need to be very proactive.  Although most of the enquiries the Client Services team deals with are inbound, we still have to actively build relationships with our clients and make sure we’re answering their questions quickly and accurately.  You need to have a passion for customer services and also a willingness to learn and develop a good understanding of your clients’ needs and the insurance industry in general.  It’s hard work, but really satisfying.

What do you think makes Kingsbridge stand out from other insurance providers?

We’re often able to cover people who haven’t been able to get insurance elsewhere, or who thought they would have to pay thousands to get cover.  The set package of insurance is designed so our clients have peace of mind that they have the right cover, without the time and confusion they can experience from sourcing separate policies from multiple providers.

Any advice you have for freelancers or contractors looking for insurance?  

It’s vital that you’re adequately protected and equally, that you’re protecting anyone who might be affected by the work you do.  Don’t assume that you are automatically covered by your agency, your accountant or your professional body.  This is not always the case and we have so many contractors getting in touch, panicking as they won’t get paid until they can provide proof of insurance.

 Where do you hope to be in a few years’ time?

The plan is to get more involved with the work that the team that manage our partnerships and affiliations do.  I’m training with them at the moment, working towards a role as an account manager. 

We’ll be featuring more Client Services profiles over the coming months.  If you need to talk to a member of the team for a business insurance quote you can call on             01242 808740 or send an email to enquiries@kpsol.co.uk.

 

What Is Contractor Insurance?

Working as a self-employed contractor may give you freedom to be your own boss, but it also means that you have to take on all responsibility for your actions. Taking out a dedicated Contractor Insurance policy ensures that you get support when you need it most.

Whether you work in Engineering, Finance or IT you are likely to need Professional Indemnity Insurance (also known as PI). In the event that a client is unsatisfied with the work you’ve carried out for them, due to a breach of professional duty. PI can help cover legal fees incurred if a claim is made against you.

It’s recommended that contractors keep Professional Indemnity Insurance continually, even though you may be between jobs or taking a short break from work – a past client could still bring up issues and, to be covered, you must have insurance in place at the time the claim is made against you.

Occupational Personal Accident cover is important if you encounter an accident at work which leaves you unable to carry out your job in the future.  An insurance policy should be able to give you weekly payments while you recover, or a lump sum if you find yourself unable to work in the long term.

If you work from a client’s premises, or anyone visits yours you have a duty to protect anyone who might be affected by your actions. Public Liability Insurance will help cover you if property is damaged or a third party is injured whilst you are carrying out your work.

The volume of polices available can be confusing, at Kingsbridge Professional Solutions our insurance package covers the above policies (as well as Employers’ Liability and Directors’ and Officers’ Liability) to make Contractors Insurance simple and affordable.

Funny Insurance Claims You Couldn’t Make Up

cowHaving the right insurance is no joke but it’s not all doom and gloom in the world of insurance either.  Every now and again we hear of some rather amusing situations – don’t be embarrassed to ring us, we’ve heard it all! Here are some funny insurance claims you couldn’t make up!

1. A jeweller sent in an insurance claim after repairing a customer’s £200 watch he then accidently returned a £10,000 Rolex – only noticing as he left the shop that he had forgotten to note down the customers contact details. We don’t know what the result was, perhaps the customer was kind enough to return it?

2. A holidaymaker in Sri Lanka suffered an accident as a result of a coconut falling on her head whilst she read in the shade below. She claimed for her hospital expenses.

3.  A driver rang up with this claim – “I was driving along a road and saw there was a farming fete in fields ahead, all of a sudden I saw a man dressed as a potato, this quite surprised me and I lost control of my vehicle and landed in a ditch” (The man dressed as a potato was at fault of course!)

4. One burglar in the US robbed a house, accidentally locking himself in the garage. He was stuck there for more than a week as the homeowners were away on holiday. He survived by eating dog food stored there. When the man finally got away he made an insurance claim for ‘undue mental anguish’. He was compensated almost half a million dollars!

5. A Devon farmer claimed that his iPhone had been lost in the back end of one of his cows – he had been using it as a torch whilst calving in the middle of the night. Unsurprisingly, the mobile appeared a while later but wasn’t working.

Do have any insurance stories to share?  Why not post them in the comments box?

Freelancing – A Risky Business?

Any freelancer or contractor working through their own limited company will have experienced the complexity of purchasing business insurance products.  One of the most common questions we’re asked by contractors and freelancers is simply ‘what insurance do I actually need?’

Firstly, when freelancing, you need to establish the risks your business faces and your legal obligations.  But let’s also consider your clients, the assumptions they make and the (often standardised) contracts they will expect you to comply with.

  • Professional Indemnity insurance is vital if any errors you make or negligent advice you give leads to financial loss or damages the reputation of those relying on your expertise.  Including legal defence costs and any damages awarded to the claimant it’s a crucial insurance to hold when expertise is what your clients are paying you for.
  • Whether you work from a client’s premises or have visitors to your own place of work, you have a duty to protect anyone who might be affected by your activities.  Public Liability insurance would provide cover if someone was injured or property was damaged as a result of your actions in carrying out your duties.
  • Employers’ Liability insurance is compulsory for almost all UK businesses with limited exceptions. Freelancers and contractors who don’t employ anyone are exempt,  however, many clients’ standard contracts are drawn up without consideration for the specific legal requirements which apply and will simply insist upon this type of cover.
  • Occupational Personal Accident insurance protects you financially if you become unable to work due to injury as a result of an accident at work.  As a freelancer you will likely have very limited financial support available while you are unable to work.  By paying a weekly benefit while you recover, or a lump sum if you are permanently unable to work, Personal Accident cover is highly recommended for freelancers and contractors.
  • Directors’ and Officers’ Liability insurance gives you financial protection as a company director where you could be held personally liable if you fail in any of the numerous responsibilities you accept to run and represent a company in an appropriate manner.  Situations where a claim can arise range from financial misrepresentation to alleged legislative breaches.

By understanding your main exposures and contractual obligations we’ve created a package of business insurance designed specifically for freelancers and contractors.  For further information visit www.kpsol.co.uk

How Do Freelancers And Contractors Keep In Touch?

Kingsbridge MD, Steve Wynne, tests his reactions at Gastech

It’s been a busy few weeks for KPSol, both in and out of the office.

We’ve been raising money for Breast Cancer Awareness, attending exhibitions and strategy planning for fast approaching 2013.

All of this activity means we’ve been connecting with colleagues, partners and clients more than ever and I’ve been thinking about our Freelancer and Contractor clients who don’t always have the luxury of someone sitting across a desk from them.

So how do Freelancers and Contractors connect with one another?

One sector that appears to be actively encouraging networking amongst its peers is that of the Oil and Gas sector.  What would outwardly appear to be an insular career path is just not so when it comes to Oil and Gas Freelancers and Contractors.  KPSol are regularly invited to attend conferences, events and trade shows within this industry and we were delighted when, on the 8th October, Gastech returned to London after 40 years.

Our stand proved to be a popular installation with the inclusion of a reaction testing machine, used by Formula One teams for driver training.  It wasn’t easy to resist the challenge, as you’ll see from the image of our very own Managing Director, Steve Wynne.

Professor Brian Cox OBE, Research Fellow, Author, Broadcaster, CERN Project & BBC Television had this to say about the conference and exhibition;

“To be able to talk to the people at the cutting edge, you know, you’ve got your people here who are important, influential and employers of people that I and my colleagues in the university sector educate, so for me, that’s a real value.”

However, not all industries hold regular events and what of Freelancers and Contractors working offshore, overseas or those who simply can’t afford to take the time away from their businesses.

Social media is one option but it’s also a hotly debated communication method amongst the business community and this includes Freelancers and Contractors.  One school of thought and the generic advice has been to only connect with those companies that could offer you a contract immediately.  The thinking is that if you are using social media as a marketing tool, then you should only target potential clients and that other connections won’t lead to paid work.

But who knows where your Freelance and Contractor connections could lead?  Today’s entrepreneur may well be the next Steve Jobs or your Freelancer contacts may make the move back into a traditional environment and a position that could provide you with future contracts.

Freelancers have many and varied skills which often complement each other.  Knowing someone you can team up with could make the difference between you winning a contract or not.  Knowing your industry and your peers and keeping a regular dialogue with them also means that you’re first in line when it comes to work referrals.

Of course, like any networking method, relationships take time to develop and if you view social media purely as a method of generating new business you’re likely to become disillusioned fairly rapidly.  But if you’re looking for a way to stay connected to your peers, industry news and for a method of getting a quick and candid opinion, it could well a medium worth exploring.

New Website for Freelancer and Contractor Insurance

We’re always looking for ways to simplify the process of obtaining freelancer and contractor insurance and we think our relaunched website does just that.

With all of the functionality our clients have come to rely on and some exciting new features, we believe you won’t find a simpler way to get cover for your business.  Live chat allows you to connect instantly with a member of our team and our Insurance Guides and FAQs make it easier than ever to get access to the information you need as a Freelancer or Contractor.

Combine this with Instant Quotes and Policy Documents within 10 minutes and you’ll find kpsol.co.uk an invaluable resource.

You can also take advantage of our Price Promise Guarantee and Refer a Friend incentive, making KPSol’s Contractor and Freelancer Insurance Package the best possible cover at the lowest possible price.

We hope you enjoy navigating the new site.  We’re always looking for ways we can improve and we’d love to hear from you if you have any comments.

 

Kingsbridge Risk Solutions Ltd – Proud to be Chartered Insurance Brokers

Kingsbridge Risk Solutions Ltd have recently been awarded the prestigious Chartered Insurance Brokers designation by the Chartered Insurance Institute (CII).
This is the industry’s gold standard for firms of insurance brokers. It confirms that we have satisfied rigorous qualification criteria by retaining highly-qualified staff who subscribe to the membership conditions of the CII.
It also involves a commitment to continuing professional development and adherence to an industry standard Code of Ethics. You can view the Code at www.cii.co.uk/code.
There are less than 100 Chartered Insurance Brokers in the UK. When you use a Chartered firm you are dealing with proven professionals. The CII is empowered by the Privy Council to award Chartered status, and the award is only made in deserving cases. And while Chartered titles are steeped in history, they remain the benchmark of professional excellence and integrity.
Only the UK’s premier insurance broking firms qualify for Chartered status. If you wish to know more about how using a Chartered firm can ensure you get the best possible advice, service and support, please do not hesitate to contact us.
Note: With over 93,000 members, the CII is the world’s largest professional body dedicated to the insurance, savings and financial services sector.