Surrey, England -- (SBWIRE) -- 03/11/2013 -- The Chancellor is due to deliver his fourth UK Budget on 20th March 2013. George Osborne's hands are tied to a great degree – thanks to the enormous hole in the Government finances, and the continuing economic malaise.

James Leckie, founder of contracting industry news site, ContractEye, says that the Chancellor should use this year's Budget to stimulate business investment, and should focus on cutting taxes to encourage spending over saving.

"With the UK economy on the edge of a triple-dip recession, the only way to turn things around is by encouraging both businesses and individuals to spend. Until confidence has been restored, businesses are more likely to hoard profits rather than invest them in people, equipment and research and development."

Last year, the Government increased the Annual Investment Allowance (AIA) ten-fold to £250,000 per year, and has cut the main rate of Corporation Tax in successive Budgets. However, Leckie argues that further measures are necessary:

"The Chancellor needs to make life easier for small companies by cutting red tape and taxes, rather than introducing new processes such as the forthcoming Real Time Information payroll requirements."

"The funding gap continues to grow – as traditional lenders are more concerned about shoring up their capital reserves rather than lending to small firms. If UK taxpayers own such large shares in these organisations, why is the Government unable to force them to lend?"

Focusing on contractors and freelancers in particular, Leckie doesn't expect to see any specific new measures introduced, although the Government's anti-avoidance stance is likely to grown ever stronger, as the gap between Treasury tax receipts and expenditure continues to grow.

"Last month, HMRC signed a disclosure agreement with the Isle of Man to force taxpayers to come clean about funds they have hidden offshore, and the GAAR is scheduled to become law later in 2013. The Government is getting serious about tax avoidance, so contractors who have used 'aggressive tax planning' measures in the past should review their situation with a professional adviser to ensure that they don't become liable for sizeable back taxes."

The main policy change most contractors would like to see announced during Budget 2013 would be the abolition of the IR35 rules.

The Government committed to keeping the rules in place during Budget 2011, albeit with an overhaul of the way HMRC deals with IR35 investigations, so the most contractors can expect is some minor amendments to the current rules, says Leckie.

"Contractors would like to have more certainty over the risk they face of an IR35 investigation. The recently implemented HMRC business entity test has been poorly received, and the general guidance provided to taxpayers is muddled and inconsistent at best."

"I don't expect any major announcements over IR35, but any refinements to the way the rules are currently administered are always welcome."

About Contract Eye
Founded in 2006, Contract Eye is one of the UK's leading contractor news sites – providing weekly news updates, and over 1000 dedicated contracting guides.

James Leckie also runs Company Bug, an advice site for limited company owners, and ITCA, which helps IT contractors compare accountancy providers.

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Richmond, UK -- (SBWIRE) -- 02/04/2013 -- Leading contracting news site, Contract Eye, has launched a new microsite, to help fellow contractors select the right accountancy provider for their companies.

Most IT contractors work via their own limited companies, and typically hire the services of specialist accountants to handle their company accounts, payrolls, and deal with Companies House and HMRC on a regular basis.

In the 1990s, the contractor accountancy market was dominated by a few major players, but over the past five years, the number of specialist providers has increased significantly – providing a wider variety of choice for contractors.

The new site, ITCA (IT Contractor Accountants), provides concise guides to all aspects of selecting the right provider, together with guides to the fundamental aspects of limited company taxation.

ITCA's founder, James Leckie, was an IT contractor himself for a number of years, before running a series of industry news sites. He explained the motivations behind creating the new site:

"Over the past 15 years, the ITCA team have used the services of nearly a dozen different contractor services providers, and we have used our own experiences to help create a series of guides to help other contractors find the right accountant without having to learn the hard way."

When asked to highlight the most important factors you should consider when comparing prospective accountants, Leckie explained:

"With such a wide number of specialist accountants operating in the contracting market, the main ways to differentiate between firms is on customer service and price. However, you should not select an accountant purely on price alone."

Other selection factors highlighted by the new ITCA site include:

- Does the firm provide online accounting facilities? Are the accounts updated in real time?
- Will you be provided with a dedicated account manager?
- Are there any exit fees should you decide to change accountants?
- Does the provider have specific industry knowledge - particularly relating to IR35?
- Will the accountant include the costs of completing the director's Self Assessment Return?
- What recognised accountancy qualifications does the firm's key personnel hold?
- If possible, seek recommendations from trusted colleagues.

Leckie concluded:

"Your accountant will be your most trusted advisor during your contracting career, so we hope that our series of guides can help contractors make an informed choice from within a crowded market of providers."

James Leckie has founded a series of business information sites since 1998, including:

Company Bug – a guides-based site dedicated to limited company contracting.
Bytestart - one of the UK's leading business websites, providing information on setting up and running a small business.

For further information, please contact:

James Leckie
Director, Contract Eye Limited (London, UK)
Email: james@contracteye.co.uk
Telephone: 0208 144 5046

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