Tax and contracting News

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

New offshore oil and gas regulator needed, says oil tycoon

12 - 11 - 2013

Reforming the regulation of the North Sea oil and gas industry could generate £200bn for the UK economy, according to a recent report.

Retired billionaire oil tycoon Sir Ian Wood, who was chairman and chief executive of the successful North Sea supplier Wood Group, was approached by the government in June to conduct a review of the industry.

 

His findings, published in an interim report on Monday, outline the opportunities and challenges facing oil and gas companies and the government and make a variety of recommendations designed to boost the economic benefit of the UK’s remaining offshore resources.

 

‘Far too thinly spread’

The report calls for a new regulator to be set up to oversee the sector as the current regulator is described as ‘significantly under resourced and far too thinly spread’ to manage the industry’s increasingly complex business and operating environment.

As envisaged by Sir Ian, the new regulator would take on a stewardship role for the next phase of the UK Continental Shelf (UKCS).

The body, which would be funded by the industry, would be appropriately resourced and armed with additional powers to achieve greater co-ordination of activities and collaborations.

For the first time, it would also have the right to attend operator consortia management meetings.

Sir Ian said: ‘A better resourced arm's length regulator with a strong economic focus, capable of attracting top quality personnel with appropriate industry experience, will be able to work more closely with the industry and facilitate the development and progress we need.

‘This will require fundamental changes in operator behaviour but, as my interviews confirmed, they are clearly up for it.’

‘Once in a generation opportunity’

Energy Secretary, Ed Davey hailed the report as a ‘once in a generation opportunity’ to boost the industry for another 30 years.

Scottish Energy Minister, Fergus Ewing lent his support to the recommendations made, saying the Scottish government was ‘fully behind Sir Ian Wood’s report’.

‘We believe it is essential that the recommendations are implemented with speed, and a shadow body be set up rather than await the outcome of primary legislation,’ he said.

‘Deeply worrying’

However, director of environmental group WWF Scotland, Lang Banks criticised the report, saying that there is ‘something deeply worrying about publishing a report that aims to squeeze even more oil and gas out from beneath the North Sea just as delegates gather for UN talks to discuss ways to tackle climate change by reducing our dependency on fossil fuels.’

 

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