City Jobs

Hiring in the financial services sector in the City has ‘slowed considerably’ during August because of the faltering global economy.

According to the Morgan McKinley London Employment Monitor, the number of new job vacancies in the City fell by 34% in August compared to the same time last year. The number of individuals registering for new jobs also decreased in August, down by 37% compared with August 2007 and the average City salary has dipped slightly by 2%.

Robert Thesiger, chief executive of Morgan McKinley’s parent company, Imprint, said: “Following the collapse of one of the financial services industry’s major institutions at the weekend, it is evident that the fallout from the credit crisis is not over. These momentous events of the past few days have changed the landscape of not only London’s but also the global financial services sector. It is probably fair to say, therefore, that the period of transition that will now follow will create an equally challenging and nervous environment within financial services and the recruitment market within this sector.”

* - Article from the recruiter

Adecco purchase

Multi-sector recruiter Adecco has announced that it will not be making an offer for financial recruiter Michael Page and will remain “financially disciplined”.

Adecco, who had a £1.3bn offer rejected last month, said that a deal could have benefited both recruiters and their respective shareholders but had now concluded that it could not agree a combination on terms acceptable to both Adecco and the board of Michael Page at this time.
Adecco has reserved the right to make a future offer for Michael Page within six months if an agreement can be made with the group’s board or if a third party comes in with an offer for Michael Page.

Michael Page’s board released a statement saying that it had unanimously concluded that Adecco had materially undervalued the financial recruiter and its prospects, and that the interests of shareholders and employees would be better served by Michael Page remaining an independent entity.

The statement added that the board believes that Michael Page’s clear strategy of organically diversifying its activities by geography and discipline and increasing its exposure to growth markets, together with the longer-term structural growth drivers of the specialist recruitment market, means that the recruiter has excellent prospects.

* - Article from recruiter

Housing association enables flexible, secure remote working for staff, anywhere, anytime

How a major housing association has enabled flexible, secure remote working for all of its staff, anywhere, anytime Flexibility is the keyword in the housing sector. Concerns over work-life balance, and the need to help field workers and partners to operate effectively when away from the office have made the ability to work flexibly an IT essential.

The potential benefits that can be achieved from providing remote network access are well-documented: improved productivity from employees away from the office; customers who can access services online when they want; and quicker responses from suppliers who can service systems without having to come on-site.

But the problem with such flexible working is control. Giving all these users external access to your network poses a real risk to an organisation’s data, and no-one needs reminding of the consequences of a data breach – especially after the recent high-profile Government data losses. So how do you deliver the services that your users and partners demand whilst also guaranteeing that critical, sensitive information such as customer data will remain as safe as houses?

This was the conundrum faced by a Bradford, Yorkshire-based housing association, Incommunities. Here’s how it was able to balance easy, flexible access with watertight network and data security.

Incommunities in control

Incommunities is a housing association managing over 22,000 homes for customers across the Bradford district. Andrew Bland, Senior Network Administrator for Incommunities, explains how installing a unified access control solution from AppGate Network Security has solved the problem of network security so he and his team can get on with the business of delivering online services.

“We were originally just looking for a replacement for our Citrix Secure Gateway, and a secure Instant Messaging product”, explains Bland. “But AppGate’s approach got us looking at things differently and thinking outside the arena of traditional VPNs. It was clear we could achieve far more. So we changed our plan and made the decision to buy the AppGate solution.”

Central point of control

“Having a single point of control for security is the most important feature for me,” said Bland. “With the new solution I have a single, central point where we can define security policies, and control and monitor access for all users – whether they are tenants, employees or external suppliers.”

Previously network security depended on the security of all point products on the network. “Putting services online used to be a minefield, having to manage the security of applications from multiple vendors. The AppGate server now manages security, providing our first line of defence, and centralised policy control means I no longer have to worry about the security of other vendor applications.”

Bland is also confident that data on the network is better protected. “For our remote workers, especially those who work on temporary sites, such as building projects, we provide virtual PCs which they can now access via Remote Desktop. It’s proved cheaper to operate, and much faster and as a result everyone wants to use it. Which makes me happy because even if the laptop is stolen, data remains onsite and fully secure.”

Bland adds that a further benefit of using Remote Desktop is that users see exactly what they see when working in the office. So no additional training and support is needed – which saves more time for the IT team.

ROI matters

Bland reports that in less than 12 months, the investment in security has resulted in overall cost reductions in a number of areas. Several point products on the network have been made virtually redundant, generating considerable savings on product support, software licenses and training.

And further cost savings have been identified as the team plans to provide wireless access. “Previously this would have required the purchase of an additional dedicated wireless solution, but our solution already supports wireless access so it’s saving us a lot of money. What’s more, we can give secure remote access to any employee or partner from anywhere, not just locations with dedicated VPN links, which is a further cost saving.”

The solution is also helping to improve the productivity of Bland’s team. As well as the time and resources saved from not having to check the security of other vendor applications, new applications developed in-house do not have to be fully secure and online services can be rolled out faster. In addition, the IT team can take advantage of secure remote access from any location so that system support is no longer restricted to a fixed time and location.

* - Article from www.publictechnology.net

Letting Lehman Collapse Was Right Move

It’s been an extraordinary weekend on Wall Street and the latest events in the financial crisis will probably affect us all.
Lehman Brothers’ move to Chapter 11 -- roughly equivalent to administration in the UK -- is extraordinary in itself. Lehman is (or was) the fourth largest investment bank in the world after all. But on top of that, you have an emergency takeover of Merrill Lynch and insurance giant AIG in deep trouble, too.
Today’s news makes it even clearer that the days of cheap credit and surging property prices are over. Stability will eventually return but I may not see ‘irrational exuberance’ again in my lifetime.

Today’s markets

Shares in London have fallen across the board this morning and we’ll probably see a similar picture this afternoon on Wall Street. As I write, the FTSE 100 is down 185 points at 5,232 while mortgage bank HBOS (LSE: HBOS) has slumped 52p to 229p.
Other financial fallers include Royal Bank of Scotland (LSE: RBS), down 21p at 212p, and Barclays (LSE: BARC), which has dropped 36p to 314p.
I can understand why investors are selling out. Lehman had big positions in derivatives markets and we don’t know which banks are exposed to those positions. Lehman’s positions will now have to be unwound in very difficult markets and other assets may be sold at ‘fire sale’ prices, too.
There’s a risk of a domino effect across the financial sector as asset values fall further.

Beyond shares

Sadly I fear Lehman’s collapse will even affect those of us without a share portfolio. For starters, the economy will be hit as bankers lose jobs and confidence suffers.
And the mortgage market could be hit as well. In recent weeks we had seen tentative signs of a revival with rate cuts on some mortgages. I reckon we’ll see that trend go into reverse as lenders once again find it harder to raise finance.
On the plus side, central banks such as the Bank of England may start to cut interest rates more quickly than had been expected. Central bankers will know that further bank failures could lead to deflation -- where retail prices fall. The obvious way to avert deflation is to cut interest rates.

What now?

The most important advice I can give is: ‘Don’t Panic!’ We’ll get through this crisis in the end. If you can focus on the long term, now is probably a good time to drip money into the stock market. The good old index-tracker fund will do nicely.
However, I would stress that any stock-market investments should really be for the long term. I mean ten years or longer. Drip feeding your cash in every month is a good approach, as it means you can 'average down' at lower prices if the market falls further.
The one area I’d avoid is bank shares. Sure, they look cheap at first glance -- if you believe analyst forecasts, HBOS is trading on a price/earnings ratio of just 4 for this year.
Trouble is, it’s very hard to ascertain the true health of the loan book and there’s a real risk of further fund raisings in this sector. Possibly even a Lehman-style collapse. I’m steering clear of the lot for now.

Hank got it right

But in spite of all the gloom, I am pleased about one thing. US Treasury Secretary, Hank Paulson, made the right call. We’ve seen government bail-outs of Fannie, Freddie, Bear Stearns, and Northern Rock, but it’s been different for Lehman. Paulson has let Lehman go to the wall.
That was the right decision because bankers had to learn that the government wouldn’t always rescue them when they took on too much risk. If bankers never learned that lesson we’d see another bubble all too soon.
The biggest risk for all of us now is deflation. Let’s hope that central bankers and governments can inject enough cash into the system to stop that happening.

* - Article from Motley Fool

Why Dragonfly got caught by IR35

A combination of factors brought this case down. The simple fact that it concerned a succession of contracts and extensions, commencing before the introduction of IR35, all for the same client, the terms of which contracts changed in details from contract to contract, left a fair degree of uncertainty as to what the terms actually were. Plus, the succession of changes, intended to create a more IR35-friendly background, probably lead to the conclusion that they were solely there for that purpose, and thus undermined their own credibility – the damage had already been done.

The succession of extensions compounded the risks – just as there are ways in which a later and better worded extension can potentially improve the position for earlier periods, provided it accords with reality, the converse can potentially apply – i.e. earlier less favourable terms can drag down later and more favourable terms. It’s a question of whether or not one can show that the later term in fact more accurately represents the reality.

It has long been recognised that overstaying one’s welcome with a particular client can compound IR35 risks, particularly where (as here) an appearance is created of the individual gradually becoming integrated into a team.

The fact that the agency-client contract had been entered before IR35 was even a twinkle in the eye of Gordon Brown that clearly did not help!

On Control, the case makes clear that where

• an engagement is to do work allocated as the contract progresses (as opposed to agreed at the outset), that may be capable of amounting to a sufficient degree of ‘control-what’

• there is a submission to guidance, or monitoring, or appraisal, that may be capable of amounting to a sufficient degree of ‘control-how’ to put the hypothetical relationship between individual and client at risk of being considered to be one of ‘employment’, for IR35 purposes.

Clearly, contractual provisions in early contracts which expressly provided that the contractor company was engaged to provide the individual to perform services under the client’s

• ‘direct supervision and control’ (first contract)

• ‘direction’ (second contract)

and requiring the individual to comply with ‘customary rules and regulations for the conduct of the client’s own staff and the client’s customary working procedures and security measures’ were unhelpful, even as background and not specifically relied on in the conclusions. It’s hard to interpret them in any other way than that the individual was expected to ‘fit in’ and become part and parcel of the client’s organisation as if he were an employee.

The true meaning of Mutuality of Obligation – ‘MOO’ – may be taken to have been further clarified; whilst it remains a negative from an IR35 viewpoint to be entitled to payment other than for services actually provided, to avoid that is not a complete get-out; at its barest essential, an obligation to provide services personally (i.e. without a genuine and unfettered right to substitute), in return for payment, will generally be regarded as sufficient MOO to constitute the basis for an employment-type relationship, if other factors too support that conclusion. So it must now be accepted that MOO can exist, without any obligation on the part of the engager to either provide work, or to pay in lieu; though of course if there were such obligations, they would clearly be additional negative factors.

On Substitution: the contractor was a 'one-man' company, and it was said that its sole raison d’être was to supply the individual’s services; the suggestion was made that the fact that such a company entered a contract which did not mention the individual by name might not of itself be sufficient to undermine the implication of an obligation to provide services personally. Admittedly here it was in the context of a sequence of contracts, of which some earlier and some later did name the individual. Nevertheless, this gives some cause for concern.

Two or more contractors might consider using a ‘partnership company’, to help avoid the suggestion that the sole raison d’etre is to supply the services of but one individual. They would need to manage this themselves, of course, to steer clear of the MSC legislation. But for such a company to contract for specified services, without any individual being named, would clearly help avoid the suggestions here that the only implication was that the one person behind the company would be doing all the work.

Overall

Whichever way one views it, this is a case which sets out the detailed interpretation of IR35, in a way which is clear and logical, and will provide a valuable first point of reference for the future. You may not like it, but at least this spells out what you have to do to work around it!

Analysis written and provided by Roger Sinclair, a legal consultant at Egos, a legal advisory for IT contractors.

IT contractor liable for £99,000 tax after losing IR35 case

The High Court has ruled against an IT consultant who was fighting a £99,000 tax demand for work he completed on behalf of motoring organisation the AA.

The Professional Contractors Group (PCG), which represents UK IT freelancers, has expressed its shock at the judgement, which it said could have major implications for other consultants.
The "Dragonfly" IR35 case involved PCG member Jon Bessell, the owner of Dragonfly Consultancy. He is now liable for £99,000 in tax. Speaking after the judgment was delivered, he said, "I am devastated by today's news. Not only does it affect my family and me, but all the other freelance professional consultants who are trying to earn an honest living. "I was never an employee of the AA and I simply cannot understand how the High Court has reached its decision. It is a travesty of justice."

The judgement found that Bessell was technically an employee of the AA when completing IT projects for the organisation, and that he was therefore liable for the £99,000 tax demand.
The Professional Contractors Group supported Bessell in bringing his appeal because of the potential wider implications of the case.

PCG managing director John Brazier said, "This is a potentially massive blow to freelancers throughout the country. This case threatens the long-established defences against IR35.
"We will be looking at the judgment in very close detail to work out its full implications."
The Professional Contractors Group will be publishing further guidance on the consequences of the judgment shortly, he said.

* - Article from Computer Weekly.

It is worrying that despite the Government always saying that they support small businesses and the freelancer market they permanently seem to be trying to clamp down on this section of our workforce. Back in 2002 one in ten of the working population was self-employed. I would imagine that this number has only increased in the last few years. Surely this number of people should be supported more. Yes everyone should pay tax (it's not like in the UK we aren't taxed enough) but what is the point of trying to better yourself, earn more, improve your and your family's living standards, add to the economy if all your hard earned money is going to be whittled away. The whole process should be simplified. It is all the Government rules and regulations that mean thousands are spent on Accountancy fees which still don't guarantee you safety from the long arm of the HMRC. Simplify it, make it easier to understand, promote entrepreneurial and innovative thinking, promote small businesses, promote freelancers, because without them this economy would struggle and companies will find skills that they want are now based abroad. It isn't really surprising that many people are looking abroad to try and find that better standard of living!!! I mean, this Government will take 40% of your hard earned money which you have paid tax on all your life and which you want to leave to your loved ones after you have died. Fair - I think not.

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