Knowledge economy contractors benefit from swift growth

The UK's economy is thought to be in a relatively healthy state at the moment, with growth providing plenty of opportunities for businesses to generate healthy incomes. However, the so-called 'knowledge economy' is proving significantly more successful than other sectors in the UK at the moment, generating new business at four times the rate of the rest of the economy.

Knowledge companies in the UK are proving hugely successful, with a growth rate of 18.4 per cent over the last five years seeing the number of businesses leap from 225,000 to 266,400. By contrast, the number of businesses in the wider economy has grown by just 4.6 per cent over the same period.

The knowledge economy itself is based on intellectual capital, including sectors such as FinTech, film and TV production, pharmaceuticals and aerospace. This means that some of the most strategically vital businesses, and those which have the potential for the highest margins, are prospering, which important to the ongoing strength of the UK economy.

This has come about, at least partly, as a result of the role that the government has played in stimulating the knowledge economy with the tax credits offered to businesses for research and development. This has increased the investment in product development although the UK still lags some way behind our European counterparts.

The knowledge economy is an area which has traditionally been responsible for providing higher paid opportunities for contractors, with the knock-on benefits that this offers the UK economy as a whole.

With countries such as China getting more involved in lower margin manufacturing, the UK economy is increasingly coming to rely on the knowledge sectors in order to remain competitive.

One of the benefits to the knowledge economy from a contractor's point of view is the speed with which projects are turned around, meaning that there are plenty of opportunities for contractors and consultants with the right skills.

If you think your skills lend themselves to a career in contracting, then our guides can help you achieve your goals, including information about being an IT contractor, a number of contractor case studies and a take home pay calculator which will help you to work out how much you could be earning.

For support and advice on maximising your income, a specialist accountant is the best way to ensure that you are paying the right amount of tax and making savings wherever possible. Our team have years of experience helping contractors, so call today on 0500 152500/ 01442 275789 or email jessica@sjdaccountancy.com for details of how we could help you.

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SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's Largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
  • Money back service guarantee. All your telephone calls and emails will be answered the same day or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee starting from £120 plus VAT per month. Check our packages for more detail.

If you have any questions about contracting or would like any further advice please call our new client services helpdesk on 01442 275789 or email: janice@sjdaccountancy.com. Our new client services helpdesk is open Monday to Friday (8am to 6pm).

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own Limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.