Freelancers must be proactive individuals if they wish to maximise the time they spend 'in contract', it has been claimed.

According to news provider Contract Eye, it is the responsible of the individual to secure placements throughout their career, even if they work through a PAYE umbrella company.

"If a role is coming to an end, it is up to you to facilitate a renewal, or have a fresh role lined up, the site said.

"There is plenty of potential help along the way, from your accountant, agents, clients, colleagues and other people you form a bond with along the way."

Contract Eye said that freelancers need to be self-starters if they wish to succeed in self-employment.

The website noted that although some individuals find themselves in contract 52 weeks of the year, they should work their finances out based on 44 employed weeks, to allow for planned breaks and time spent seeking new roles.

"Unless you want to be forced back into the world of permanent employment, you should always try to keep money aside to support you when you're out of contract - possibly the equivalent of three to six months' income," Contract Eye urged.

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Contract Eye

The UK needs migrant workers to remain in the domestic labour force, at least in the short term, it has been claimed.

A spokesperson for the Trades Union Congress has warned that a loss of overseas expertise would leave a dangerous skills shortage in Britain.

"Migration levels are a good indicator of economic virility and the high number of expats living in the UK shows how strong the economy is," he said.

"The finding that expats are considering leaving the UK suggests that the prospects for gross domestic product and labour market growth in the UK are weak."

Consequently, the spokesperson urged the government to invest in skills development in order to maintain the UK's competitiveness.

Back in June, home secretary Theresa May announced that the number of workers entering the UK from outside Europe will be controlled by a new limit.

Net migration will be scaled back to the levels of the 1990s - to tens of thousands rather than hundreds of thousands - the coalition government vowed.

The second quarter increase in gross domestic product in the UK economy will not continue into the third and fourth quarters of 2010, an economic research consultancy has claimed.

Figures from the Office for National Statistics revealed a 1.2 per cent rise in economic growth between April and June, 1.7 per cent higher than the second quarter of 2009.

However, Jonathan Loynes, chief European economist for Capital Economics, has dashed umbrella contractor hopes of a strong, sustained recovery by describing the figures as "a complete one off".

The chance of the UK economy expanding at the pace seen in the second quarter is "looking extremely unlikely", he stated.

With the UK economy showing signs of "beginning to cool again", Mr Loynes claimed that the labour market may also begin to slow.

"If the economy slows quite a long way, you could see jobs starting to be shed again," he warned. 

The lack of suitable definitions for the various members of the temporary workforce is causing problems for the Office of Tax Simplification (OTS) as it reviews IR35 legislation.

Established following the election with a mandate for small business tax reform, the body is experiencing difficulties undertaking this task, says Contractor Calculator chief executive Dave Chaplin.

He explained that the differences between locums, contractors, freelancers, consultants, temps, supply workers and agency workers are often impossible to identify - creating problems for the tax review authorities.

"Some of these terms are better understood and defined in certain sectors... but there are no standards and the various names for flexible workers can mean very different things," he stated.

Mr Chaplin said that, given the magnitude of the task facing the OTS in reviewing and improving upon IR35, contractors should not let their guard down against intermediaries legislation.

IR35 was introduced in 1999 in a bid to combat the practice of using intermediary companies to benefit from tax breaks.

Links:

Contractor Calculator

The effect of public sector cuts will be felt over the next two years and beyond, umbrella contractors and other professionals have been told.

Stephen Overell, associate director of The Work Foundation, said there is a wide variation in employment levels across the UK, and reduced spending could exacerbate this trend.

"We don't really know exactly where the cuts will fall yet, but there are lots of employers that have been cutting staff, even before they know," he stated.

"[The cuts will] start to be felt properly in the late autumn time after the Comprehensive Spending Review in November."

Mr Overell claimed that the outlook is somewhat bleak for the next two years at least, with the private sector unable to absorb all the people made redundant in the public sector.

Research from the Centre for Economics and Business Research revealed that unemployment is set to reach ten per cent in Wales, the West Midlands and the north of England between 2010 and 2015.

The UK unemployment rate could hit ten per cent in some regions by 2015, it has been claimed.

According to the Centre for Economics and Business Research (CEBR), Wales and northern England could be particularly affected over the coming five years.

The outlook is more positive for umbrella contractors and other jobseekers in London and the south of England, where demand for labour is likely to hold up.

However, CEBR noted that even in less affected regions, the jobless rate could reach seven or eight per cent.

The organisation said the capital will become even more important to the UK economy and will account for around 20 per cent of economic activity by 2015

A predicted boom in financial services as the private sector recovery continues will be responsible for this, CEBR said.

"Those regions which are currently very dependent on the public sector are likely to suffer a lot more as the public sector gets cut," CEBR chief executive Douglas McWilliams told BBC News. 

Umbrella contractors must prioritise tasks if they wish to succeed in self-employment, it has been claimed.

Writing for Freelance Advisor, Clare Evans said contractors should not expect to be able to do 'everything' with their working day.

"Make the best use of your time by focusing on what's important," she urged.

"Organise tasks and actions into order of priority. Spend most of your time focusing on the high priority tasks to avoid them becoming urgent."

Ms Evans said contractors should perform these duties first and break larger tasks down into smaller ones.

She suggested that urgent tasks are often caused by a lack of time, poor prioritisation, and adherence to other people's deadlines.

Freelancers wishing to outsource legal, financial and administrative duties in order to concentrate on their work may be able to benefit from working through a PAYE umbrella company.

Links:

Freelance Advisor 

IT contractors need a specific set of skills if they are to succeed in the freelancer marketplace, it has been claimed.

According to Contract Eye, such professionals need both strong technical skills and an ability to get on well with different types of people.

They must also be proactive when times are tough, and be prepared to search far and wide for employment opportunities, the resource site said.

"You don't often hear of people who have left contracting because they preferred being 'permies'," Contract Eye said.

"This shows that many types of people join the contracting world and make a success of it."

Earlier this week, Contract Eye claimed that the temporary labour market is on the up - comments which may encourage umbrella contractors looking for new placements.

However, the site has urged caution in light of public sector spending cuts.

Links:

Contract Eye

The contracting market has been far more positive so far during 2010, it has been claimed.

In comments which may encourage umbrella contractors seeking work opportunities, industry resource website Contract Eye claimed that new opportunities continue to emerge.

However, the news provider says freelancers should still be cautious in the current environment, especially in light of the ongoing public sector cuts.

"For contractors who've been through previous economic downturns, the advice is always the same - make sure you have money set aside for bad times, work extra hard to secure contract work, and keep in touch with old colleagues," Contract Eye said.

The website urged freelancers to accept contract renewals unless a new role has already been secured, while it also called on contractors to lower their rate expectations if they are struggling to find work.

During 2010, the Recruitment and Employment Confederation has witnessed continued monthly improvements in both temporary and permanent job availability, although the rate of vacancy growth has slowed as the year has progressed.

Links:

Contract Eye

The British Chambers of Commerce (BCC) now expects the UK economy to grow at a faster rate than previously predicted during this year and next.

Making an upwards revision to its economic forecast, the BCC has predicted a 1.7 per cent rise in gross domestic product (GDP) during 2010, and a 2.2 per cent rise in 2011.

This compares to the 1.3 per cent and 2.0 per cent predictions made earlier this year – suggesting umbrella contractors may look forward to a faster recovery.

David Kern, chief economist at the BCC, said UK GDP was "very strong" in the second quarter of 2010 and the pace of growth will remain satisfactory in the second half of this year.

He added: "Activity will be supported in the short-term by the cumulative impact of the huge injections of stimulus during the recession, the earlier sharp falls in sterling, and the rebuilding of stocks."

The recession ended with a quarter of 0.4 per cent economic growth between October and December 2009, since when there have been two further quarters of increased output.

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British Chambers of Commerce 

The implementation of the Agency Workers Directive represents one of the biggest challenges the UK recruitment sector has ever faced, according to one industry voice.

Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), said the new laws regarding the use of temporary employees are "the most radical" witnessed so far by the sector.

From October 2011, all temp workers who have found their job through an employment agency will be entitled to the same pay and benefits as permanent employees.

This applies to any individual who spends more than 12 weeks in the same role.

"It is crucial that everyone working within [the recruitment sector] is fully aware of the far-reaching changes it will bring about to the day-to-day running of their businesses," Mr Green commented.

Concerns have previously been raised by the REC that the new regulations will dissuade employers from taking on temporary staff, due to the additional administration work which will be incurred.

Links:

Recruitment and Employment Confederation

The rewards of contracting far outweigh the risks, according to one freelancer resource website.

Contract Eye says the potential financial rewards are highly attractive – reflecting the fact that contractors do not enjoy the security provided by full employment.

"Assuming you've negotiated IR35 successfully, you should be significantly better off than you were in your permanent IT life," the website claimed.

"The feeling of freedom is, to many, as important as the potential rise in income you'll see as a contractor."

Contract Eye explained that freelancers can take time off between placements, experience roles in a wide variety of workplaces and work with people from all walks of life.

"IT contractors are typically the first beneficiaries as private sector IT spending picks up, and despite the difficulties many contractors have experienced over the past two years, most would still rather be it the contracting industry than outside it," the website said.

Gerry McLaughlin, of ITContractor.com, recently claimed that conditions are continuing to improve for freelancers in the IT sector.

Links:

Contract Eye

The Recruitment and Employment Confederation (REC) is stepping up its Agency Workers Regulations awareness campaign.

A series of regional workshops are to be staged around the country from next month, allowing recruiters to learn more about the industry-changing rules which come into effect from next autumn.

Participants will gain a detailed understanding of what the regulations will mean in practice and how their businesses can start preparing for new regime, the REC says.

From October 2011, all temp workers will be entitled to the same pay and benefits as permanent employees once they have worked in a permanent job for 12 weeks or more.

Kevin Green, the REC's chief executive, said: "The workshops were designed to help members plan effectively for the implementation of the Agency Workers Regulations

He added: "This is without doubt the most radical legislation the recruitment industry has ever faced so it is crucial that everyone working within it is fully aware of the far-reaching changes it will bring about to the day to day running of their businesses."

Links:

Recruitment and Employment Confederation 

The Recruitment and Employment Confederation (REC) has called on the government to reconsider its decision to cap the number of migrant workers allowed into the UK.

Commenting after the Chartered Institute of Personnel and Development/KPMG revealed that 45 per cent of employers have "hard to fill" vacancies, REC chief executive Kevin Green highlighted the nature of the challenge faced by UK firms.

"With the government's proposed cap on migrant workers from outside of the European Union, it is going to be very difficult for the private sector to grow at a fast enough rate to get the UK's labour market improving when there is still a palpable need for suitably skilled workers," he stated.

Mr Green said the government should therefore reconsider its plan to put an artificial cap on immigration while legitimate demands exist.

"The huge imminent public sector cuts will put more pressure on private businesses to create employment opportunities," he added.

Links:

Recruitment and Employment Confederation 

Umbrella contractors and other professionals have been urged to consider securing a fixed-rate mortgage while interest rates remain low.

Since March 2009, the Bank of England has held its base rate at 0.5 per cent, in a bid to encourage consumer spending and to kick-start an economic recovery.

During this time, mortgage borrowers on tracker deals have benefitted from low mortgage rates, but this situation cannot continue indefinitely.

Paula John, editor or Your Mortgage, said that fixed deals have not historically offered the cheapest rates, but can be a "sensible option" and are "always worth considering".

"Your mortgage is likely to be your largest ever financial commitment and the advantage of a fixed rate – whatever sort of borrower you are – is that you know exactly what your mortgage payments are going to be every month," she said.

"That facilitates your wider budget planning, which is more important to people these days than ever before - particularly with the threat to jobs."

This additional certainty may appeal to contractors in particular, given that they may find themselves out of work for periods of time.