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Demand For IT Contractors On The Rise
Job cuts during an economic recession are normally thought of inevitable. However, economic uncertainty could actually work in favour of contractors if companies remain cautious about hiring permanent workers. Amongst all the doom and gloom, IT contractors in particular may find themselves with more contracting opportunities available than ever before. Companies who have had to lay off permanent staff in order to save costs often find the flexibility of contractors appealing. In addition, employers are able pick and chose the number of IT contractors required according to workloads and incoming projects. If economic conditions worsen, contractors are more easily disposable than permanent employees as their contracts are simply not renewed and the worker is let go. New figures support this behaviour. According to IT Job Watch.co.uk, job demand for specialists in the IT sector is actually on the rise. IT workers experienced in HTML 5 skills is one of the specialised areas in which demand has increased by 3% since January 2009, increasing most sharply during the last few months. Similarly, demand for Android skills has increased by 6% over the same period. Encouragingly, IT contractors have also seen their demand escalate. Those with specific skills such as Test Analysts has increased by 2.4% from its lowest dip in June 2009. The figures produced by IT Job Watch are not the only ones to bring a smile onto the faces of IT contractors. At the beginning of the year, E-skills UK, a sector skills council for business and information technology, predicted employment in the IT & Telecoms industry was set to grow at 5 times the national average over the next decade. Its research indicates that IT professionals in the Telecoms industry are in particular demand. According to E-skills, this year alone will see a need for 110,000 new IT Telecoms workers. More than great news for IT contractors. Growth in the IT contractor sector will consequently lead to a growth in related markets. If the demand for IT workers escalates as predicted it will require more graduates and trainees to fill the growing gap in the sector. Whilst small businesses are aware of the importance of specialist IT contractor accountants, there is a risk that inexperienced contractors fresh out of the academic environment will be unaware of the paperwork and administration HM Revenue and Customs demand. As a new IT contractor, it is advisable to join an umbrella company which can partner contractors with qualified IT contractor accountants. Trained IT accountants work with contractors to negotiate tricky tax legislation, such as the IR35, and are skilled in working out complex IT expense claims. It may pay to research the different IT contractor accountants available through umbrella companies. Partnering with a professional who is familiar with the IT industry should protect the unassuming IT specialist, especially at a time when contracting offers are predicted to flood in and paperwork will inevitably mount up. |
About the Author
For the IT Contractor, tax can be a headache. Joining an umbrella company which has access to specialised IT contractor accountants can be an efficient way to manage tax affairs, ensuring you get the right structure for your business.
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