The latest attacks on the Governments tax policies and the operation of HMRC have only highlighted the lack of support that the majority of UK businesses and workers are receiving. After a difficult 12 months in 2010, in which the country was trying to recover following the problems of the worldwide recession, there were some promising signs; with a fall in unemployment and an increase in IT spending across a number of sectors offering early hope. However, as the true extent of the public sector cuts became clear, the UK jobs market started to look bleak.
The issue of employment legislation for employers, such as IR35, on top of the economic uncertainty led to some companies becoming unwilling to hire new permanent workers, and instead offer shorter contacts. This growth in temporary workers in the UK was also compounded by the fact that many public sector projects were absorbed by the private sector.
UK workers have been given a difficult situation to deal with, as many jobs are being cut and there is an air of uncertainty within the labour market. This means that many workers have had to take risks in order to secure employment, and one of these risks is to join the growing temporary workforce.
Working as a contractor or freelancer does bring risks, but also offers many benefits. Workers are able to decide their hours and the projects or contracts they wish to work on. This means that they benefit from flexible hours and working in an environment that they like with a workload that they enjoy. Of course, the risks involved are that at times there might be a lack of demand for contractors and as they have less rights than normal workers, contracts could be cancelled with little notice. Workers interested in contracting should begin by using a contractor tax calculator to see how much they could earn working this way.