How to become an IT Contractor - Becoming an IT Contractor

Parasol PAYE umbrella company
Over 32,000 satisfied contractors.
Get paid quicker. Call 0800 5836000.

ICT work permits - contractors' group calls for reform

Posted Jun 24, 2009

The Professional Contractors Group (PCG) has called on the Government to reform the current immigration system following the controversial use of intra-company transfer (ICT) work permits by large companies.

What are ICT permits?

The contractors' group points out that ICT permits were originally intended for multinationals to transfer executive staff specialist knowledge on a temporary basis, but are instead exploited as an easy option for big firms to bring in cheaper foreign workers, often as preparation for future offshoring activities.

Most work permits require a "sponsor firm" to prove that a UK worker cannot be found to satisfy the post they are seeking to fill. No such requirement exists for 'intra company transfer' (ICT) permits, however.

Governmental review

The Migration Advisory Committee (MAC) is currently undertaking a review of current Government immigration policy, which the PCG welcomes.

Managing Director John Brazier, said:

"We have been calling for such a review for some time, and our long history of involvement and action on work permit reform has no doubt contributed to the instigation of this exercise."

"It is ludicrous that no requirement exists for firms to first exploit the existing pool of UK labour, before engaging migrant workers. In a recession, with many talented, experienced, IT contractors out of work it is clear the system is not meeting the needs of the wider economy, and is instead causing the displacement of hardworking contractors. In particular, according to reports from our members, firms such as BT have been disgracefully exploiting this loophole massively to cut costs."

In May, APSCo also called on the Government to close the loophole which allows companies to hire non-EU workers without having to advertise the vacancies first in the UK.

Please scroll down for related articles

Contractor Services


Related Articles

Contractors warned to be vigilant over HMRC tax probes
The PCG has warned contractors to continue being vigilant over IR35 as HMRC appears to be adopting a more devious approach to tax enquiries.

PAYE overhaul on the cards as Coalition launches another consultation
The latest Government consultation could result in a radical overhaul of the PAYE system, in an aim to reduce costs for both HMRC and employers.

PCG announces inaugural freelance lecture
The PCG is to hold its first freelance lecture in London this November, supported by the Telegraph Media Group.

Security cleared roles should be open to all contractors
The Government has released further security clearance guidance which aims to reiterate that contractors should not have to hold existing clearance in order to apply for sensitive roles.

Jobs report shows private sector recovery, but concerns over public sector cuts
The latest REC Report on Jobs shows that both permanent and contract job appointments increased in July, however the rates of growth have slowed a little.

New legislation archive gives access all UK laws since 1267
A new website has been launched which brings together every law created since 1267 - providing access to a staggering 6.5 million documents.

Recruiters support Government plans to review IR35
A leading recruitment body has announced its plans to work with the OTS to develop alternative legislative approaches to IR35.

Job ste reports increased number of contract roles advertised
A recent IT skills reports shows that the sector continues to climb out of recession, with contract roles continuing to increase.

Recruiter outlines Top 10 ITcontract roles of 2010
A recruitment consultancy has outlined the UK's most in-demand IT jobs so far this year - dominated by developer positions.

New body launched to simplify tax system - including IR35
Business groups have responded positively to the launch of the Office of Tax Simplification. One of its tasks will be to review IR35.

Limited company formation numbers on the up
The number of limited company formations has started to rise once again following two years of falls, according to Companies House data.

Government asks us which laws should be scrapped. IR35 anyone?
The coalition has launched a new site to enable people to suggest which laws and regulations should be scrapped. Unsurprisingly, IR35 has already been nominated numerous times.

Union angered as HP keeps contractors on board, but axes employees
Hewlett-Packard is to lay off a further 934 workers, with further cuts possible. The company still retains 2000 contractors, which the Unite union says "adds insult to injury".

IT recruiter warns that migration cap could hurt economy
An IT recruiter has warned that a cap on migration could cost the UK economy dear, as businesses will not be able to source the key workers they require.

Contracting industry encouraged by Budget measures
The contracting industry has broadly welcomed the Emergency Budget, as most contractors have escaped relatively unscathed.

Qdosconsulting