IT growth good news for contractors
The UK has seen more and more IT companies being created in recent months, with the figures for surpassing the impressive growth rates that had already been reported for the previous year. Experts have put this down to the fact that regional tech clusters are reaching maturity, providing opportunities for new businesses to capitalise on the established framework that many areas are able to offer.
A report released by sector experts has revealed that there are 154,765 active IT firms in the UK at the moment, which represents a 7.9 per cent increase on the number which were active in December 2014 when there were 143,450. 2014’s figure already represented a steep increase of 7.4 per cent on the previous year, meaning that this sector appears to be going from strength to strength.
Commentators have highlighted the fact that this is the highest level of IT company growth since before the recession started. At its lowest point, which was between 2008 and 2009, the rate of company creation fell into the red as the number of active firms fell by 0.3 pre cent, taking it to a low of fewer than 123,000. The recovery has been spearheaded by companies in the capital, with London leading the way both in 2015 and 2014, but other areas are now demonstrating similar levels of growth which have contributed to the creation of 24,000 new IT jobs over the past year. Collaborative working between entrepreneurs has allowed tech clusters to develop strengths and support each other to achieve more and work more effectively together. Manchester is an example of a city which has become known for providing niche services such as cyber security and big-data.
Anyone considering a career as an IT contractor can get an idea of the income they could generate using our take home pay calculator and for more information about the best way to operate as an independent professional, our guide to contractor tax is a useful resource.
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