The latest IT Contractor News from Contract Eye

A contractor accountancy firm says that it has seen an unprecedented rise in the number of limited company contractors coming into the market - from a wide variety of industry sectors.

SJD Accountancy has recorded a 70% rise in the number of contractors coming into the market using the limited company structure. The firm puts the increase down to factors including ongoing pressure to cut costs and remove permanent headcount in the private sector.

Recent figures from YouGov show that around one third of the entire UK workforce would like to set up their own companies. Many factors are coming together to push people into forming their own businesses, including unemployment due to 'cost cutting', the decline in graduate opportunities, and declining real time salaries in the permanent sector.

Simon Dolan, MD of the accountancy firm, said:

"Historically, the contractor and freelancer market has been dominated by IT contractors. However, in the past few years there has been a shift in that we are seeing many traditionally permanent job roles being converted into contract positions including HR, sales, marketing, healthcare and engineering."

A recent study by Experian has also recorded a surge in the number of limited companies being formed since the economic downturn began. The analysis of over 4.3 million UK directors suggests that the explosion in the number of directors associated with one and two man businesses has been spearheaded by men (up 146 per cent) and, in particular, by male directors in the younger age groups.