Tax and contracting News

The future, according to some scientists, will be exactly like the past - only far more expensive.

Construction industry optimistic about the future

04 - 11 - 2013

There is significant optimism in the construction industry with regards to future growth, according to a recent research.

A substantial number of construction companies have reported increased order books and profit margins, the recent Global Construction Survey 2013: Ready for the Next Big Wave has revealed.

 

The survey polled the opinions of 165 senior executives of leading engineering and construction companies from around the world to determine the state of the industry and opportunities for growth.

 

Sixty-six per cent of those surveyed feel that national governments’ infrastructure plans are the single biggest driver of market growth.

 

The survey showed a general upward trend in backlogs and margins between 2010 and 2013. Fifty-four per cent of respondents reported a backlog increase of at least 5 per cent for 2012-2013.

 

Eight per cent of construction firms expect stable or higher margins for 2012-13, a significant improvement over the prior period.

 

Two-thirds of those surveyed expect their company’s revenue to grow by up to 25 per cent in 2013.

 

All of those surveyed said they were considering looking into the power and energy sectors. Eighty-three per cent said they were considering targeting rail, 33 per cent industrial and 17 per cent water.

 

A number of respondents highlighted the importance of investing in people to ensure that workers have sufficient skills and sector knowledge as companies move into unfamiliar areas.

 

A respondent from the UK commented that his company’s priority is: ‘Recruitment of key personnel with industry experience of the rail and energy sectors.’

‘The worst is over’

 

Richard Threlfall, UK Head of Infrastructure, Building and Construction at KPMG, said: ‘There has been a growing sense in the last couple of months that the worst is over and the results of our survey provide further evidence that construction activity is finally picking up.

 

‘Construction companies now need to invest in growth. What is holding back the industry now is not lack of demand, but the ability of businesses to resource for it and recruit sufficient experienced staff.

 

‘The next round in this highly competitive market will be won by those who have the resources to compete. Companies need to act now, because the industry’s resurgence is already underway.’

 

 

Play the Numbers

Instant comparison between the forms of business; see the effects of legitimate expense claims, consider Flat Rate VAT or just adjust hourly rates and time spent. Look for your personal jackpot.

Help me decide

Talk to Us

Of course in the end there is no substitute for targeted personal advice. Your individual circumstances matter. You need our expertise. Get a free initial consultation – probably the best freelance decision you will make!

Help me decide

Instant Information

Our tax calculator is speedy. It is designed to give you results as you enter valid data – on the spot, in front of your eyes! We update regularly to make sure it always reflects changes in tax law and practice.

01244 625 500

Fixed Data

Assumptions

General                                                                                                                              

• The user is over 21 and subject to tax in the UK
• The user wishes to minimise their tax liability
• The user is subject to national insurance i.e.he/she is not over retirement age
• Only current tax rates and limits are applied
• No tax mitigation payments are made e.g. pension contributions
• Only 3 digit letter 'L' tax codes shown in the drop down list can be entered 
• The user does not have a turnover greater than £100,000 where fewer reliefs and or higher taxes may apply

Expenses

• All miles claimed as expenses are for business use using a personally owned car or van
• All other expenses claimed are wholly, necessarily and where appropriate exclusively for the benefit of the business

Foremans LLP Charges

• Foremans fees associated with Limited Company, Sole Trader or Umbrella are as per published rates
• Foremans current Service Costs are allowed for in all calculations.

Holiday Pay

• Holiday pay is accumulated week by week by Umbrella or Agency employer but paid out during the year

VAT

• Limited Company or Sole Trader will be VAT registered
• Limited Company or Sole Trader will take advantage of Flat rate VAT
• Flat rate applied includes the benefit of the additional 1% applicable to the first year of VAT registration

Limited Company Conditions

• One director / one shareholder in a Personal Service Company
• Director of Personal Service Company elects to vote for 100% dividend after salary, costs and expenses
• Director's salary is maximum salary to the primary threshold for NI
• The Limited Company is trading normally i.e it is not subject to IR35 and is not a Managed Service Company

NOTES

• The Current tax rates are taken from the Fixed Data Table
• The current Value Added Tax Rate is 20% and is applied to all invoices and expenses as appropriate
• The Director's Salary is fixed in relation to National Insurance thresholds. Higher Rate Taxpayers should consider the advantages and disadvantages of a larger annual salary or bonus
• Higher Rate Taxpayers may wish to consider the advantages and disadvantages of shared ownership of their business
• Users with a tax code other than three digits and letter "L" may telephone or email our Development Department to request a detailed calculation
• Generally the use of an Umbrella rather than an Agency payroll is only efficient if sufficient weekly expenses are allowable and claimed
• The expenses claimed under an Umbrella should not prevent the proper operation of National Minimum Wage