Contractors choose lifestyle over money

Lifestyle and flexible working benefits are the most important factors influencing IT staff to go freelance as contractors.

More than a third (37 per cent) of 2,000 IT contractors quizzed by accounting services provider Giant Group said lifestyle benefits were a bigger factor than money in their decision to go freelance.

The opportunity to charge more for their work was still the main factor for 22 per cent of contractors, while another 15 per cent said going freelance to reduce their tax bill was the prime consideration.

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Almost two-thirds (61 per cent) of contractors said the variety of work is better when freelancing compared to being an employee and 57 per cent said they have greater autonomy than employees.

Matthew Brown, MD of Giant Group, said in a statement: "It was feared that relentless challenges to contractors' tax status would drive IT professionals away from freelancing but this research would suggest otherwise. Tax is an issue for every worker in the UK but contractors still enjoy considerable lifestyle benefits and it is those benefits that really make freelancing worthwhile."

A recent study by the Association of Technology Staffing Companies found strong demand for contractors skilled in Bluetooth and dot-mobi tools that allow websites to be tailored for mobile devices, as well as in the middleware technologies that integrate corporate computer systems with mobile technology.