IT contractors driving boom in self employment

Four and a half million people are now working as contractors, according to the latest self employment figures from the Office for National Statistics.

And according to a recent survey by specialist contractor accountancy company Nixon Williams, half of those respondents were contractors working in IT.

The company found that many IT specialists had made the break from ‘traditional’ PAYE employment to work for themselves in roles such as programmer, developer, security consultant, project manager, business analyst, software test analyst, network designer and content designer.

Nixon Williams CEO Simon Curry said: “The latest figures demonstrate the importance of the self employment sector to the UK economy. Using contractors allows businesses to maximise opportunities, become more innovative and expand their skillset.”

ONS figures suggest that 83,000 contractors work directly in the IT sector, with many tens of thousands more operating in other areas in an IT role.

Other sectors supporting significant contractor populations include retail, legal and accounting services, management, education, and health.

Curry added: “For contractors, the rewards are higher rates of pay, more flexibility and a better work-life balance. It’s a situation where potentially everyone wins.”

While IT continues to be a popular sector for contractors, construction still dominates the self-employment landscape, according to ONS data.

But Curry predicted the IT contractor boom would continue as technology evolves: “Advances in cloud computing, contactless payment systems and cyber security mean growth for the UK’s technology sector is set to continue, and that means opportunities for self-employed IT professionals,” he said.