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Surge in number of contractor limited companies formed

Posted Mar 16, 2010

A leading contractor accountancy firm says that 2010 has seen a massive rise in the number of contractors forming limited companies.

SJD Accountancy says that the new decade has seen a 70% increase in contractor limited companies being formed compared to the same time in 2009.

Following on from nearly two years of negative news for the jobs market, and mass redundancies, SJD says that companies and government departments are turning away from hiring full time employees and thereby burdening their balance sheets with long term commitments, and are instead turning to the highly mobile and dynamic contractor market, albeit at higher daily rates of pay compared to their full time employees.

Contractors offer an immediate workforce solution

Simon Dolan, MD of the firm commented:

"We're not surprised in the least and although the contractor market had been heavily impacted by the recession, it makes perfect sense for both new and suspended projects to be relaunched and managed by contractors. Contractors offer a far more immediate solution to companies wanting to move swiftly and once again begin to build their businesses again. I'm sure the number of contractors will continue to rise throughout 2010 and I am sure many people who were affected by redundancies will also turn to contracting after having their confidence in the so called 'permanent job' market shattered."

More signs of limited company boom

On our sister site, Bytestart, which receives around 200,000 monthly visitors, we have also found that the number of limited company formations has grown dramatically since the height of the recession, suggesting that many people would rather take control of their future work prospects than leave it to the whims of an uncertain economic environment.

Similarly, the number of companies formed by Contract Eye users (via our partner, Duport) has at least doubled since the same period in 2009.

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