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Record rise in limited companies start-ups
by Susie Hughes at 10:41 12/01/11 (News on Business)
A firm of specialist contractor accountants has seen an unprecedented 70 per cent rise in the number of contractors coming into the market and going 'limited'.
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SJD Accountancy, who manage the tax affairs of over 10,000 limited companies put the increase down to factors including ongoing pressure to cut costs and remove permanent headcount in the private sector.

According to figures from YouGov, around a third of the UK workforce would like to create their own company. Unemployment, graduates struggling to secure jobs, the virtual demise of final salary pensions, job security and zero percentage wage rises, is pushing many people’s hands.

Simon Dolan managing director of SJD Accountancy 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.

"Currently, nearly 50 per cent of all new clients are from sectors outside of IT. With permanent jobs no longer making people feel secure within their roles, we feel the future will see a lot more people wanting to take back control by contracting or setting up their own company, as has been shown throughout 2010”.

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