2013-10-07

FOR IMMEDIATE RELEASE

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England 12/08/2013 – The makeup of the UKs workforce is continuing to

evolve with more people opting to work as contractors.

The UK has over 4 million temporary workers. These people do not have

a long-term contract with their employer. They effectively work for

themselves, which means that they are responsible for filing a tax

return and paying their own National Insurance. The ways in which

people are working for themselves varies, some are sole traders,

others work as an Ltd company with themselves as the only paid

employee and still others work as contractors and freelancers. Of the

latter group, the vast majority choose to work via PAYE companies,

which are also known as umbrella companies. They do so to ensure that

they pay their dues, but do not pay more than they need to in tax and

National Insurance contributions.

As more and more of the UK’s workforce are moving away from working

for others to being self employed, the use of PAYE companies is

increasing. People are increasingly struggling to find permanent work.

Many employers are now moving away from offering permanent contracts.

Increasing numbers of firms believe that doing so is the best way to

keep their labour costs under control. In many cases, the employee is

responsible for paying their own tax and National Insurance, which is

better for the employer. In addition, if the contract is short enough

there is no obligation to pay for things like sickness, holiday pay

and maternity leave.

The make up of the UK’s contractors

Many are unsure of this way of doing business, but with both

jobseekers and employees, actively opting for this work model most

believe that it is a way of working that is here to stay. Compared to

its European neighbours the UK has a much larger independent, or

contractor workforce. In most other European countries, very few

people work on temporary contracts. The make up of the temporary

workforce also varies more in the UK than many other countries. Firms

like i-Paye who provides accounting and umbrella services for

contractors and freelancers have a mix of white collar and blue-collar

workers on their books. Nearly half of the UK’s contractors and

freelancers are professionals working in the legal, IT, architectural

and other white-collar professions.

Contact:

I-Paye,

Unit 2, Puma Court,

Kings Business Park

Knowsely, UK

Zip: L34 1PJ

Tel: 0151 449 3500

Email: info@i-paye.com

Web: http://www.i-paye.com

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