IT contractor accountants may want to tell their clients about a new report from Deloitte, which suggests that the public sector should make use of online channels of service in order to cut costs and improve levels of quality and support.

The government austerity measures are so severe that the public sector must encourage people to find cheaper and more efficient ways to conduct their business.

The report points out that there are some individual successes, such as encouraging people to file self-assessment tax returns online, but the coalition must do a lot more if it wants to cut costs in the long-term.

Deloitte’s public sector director, Joel Bellman, said the public sector tends to think of digital services as add-ons to telephone, paper and face-to-face contact rather than an alternative. Therefore they are only achieving a fraction of the possible savings.

Bellman went on to say that a range of new digital services will be launched in such sectors as benefit payment, education, environment, health, local government and social care.

The report ends up by saying that the coalition needs to adopt a clear strategy for the adoption of online alternatives.

The Chartered Institute for IT (BCS) is also urging the government to focus on using IT more effectively.

At the beginning of the year, the BCS put forward a range of proposals on how to get the most out of its IT infrastructure. At the time, the Institute said that an effective implementation policy had to be done in collaboration with academia and the private sector.

The BCS argued that the government needs to define core standards across all aspects of IT and information management. Effective governance will only come about if the government centralises fiscal and managerial authority and technical leadership, BCS’s chief executive, David Clarke said.

In order to adapt to the austerity environment, it will be necessary to invest in new IT and keep abreast of new technological developments. More government IT professionals should also follow a clear career path so that senior people will be equipped with the necessary skills to manage delivery and relationships, Clarke concluded.

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Specialist IT contractor accountants may consider relocating if they’re struggling to secure a decent remuneration. But before you make that decision, you should read the results of a new study.

A recent report from CV Screen shows there is now a very clear north-south divide in the IT market, with the south-east and the capital proving to be the most lucrative. IT professionals working in London earn 14% over and above the national average, whilst employees in the south-east benefit by an extra 10.1%.

However, the study also shows that a number of technology companies moving their offices away from London and setting up in other areas of the country. The MD of CV Screen, Matthew Iveson, commenting on the results said that in the last few years he has noticed that candidates show less inclination to look towards the capital for opportunities.

He also pointed out that the expansion of online recruitment has meant candidates can find local employment much easier, and as many technology companies are now avoiding London, the market has definitely shifted.

Meanwhile, the Ashdown Group Jobs Index for September showed that placement availability for professionals in the IT sector increased by just over 5%. The adoption of PHP software is strengthening the market for skilled contractors and web developers are still in big demand.

In more good news, 86% of IT managers intend to continue spending on IT despite the spending review cuts and the continuing threat of a double-dip recession, according to research from City Lifeline. Roger Keenan, City Lifeline’s MD said it was really encouraging to see a positive attitude with regards to IT spending for 2011.

Managers seem to recognise that investing in the latest IT technologies will ensure they remain competitive during these difficult times, he added.

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Image: Dividing Line by Andrew Morrell Photography

IT contractors who have been taking advantage of HMRC’s seven day grace period need to be aware that the concession is being axed as from March 31, 2011.

This could lead to an increase in the number of small business owners and freelancers turning to an IT contractor accountant for advice in completing their tax returns.

HMRC introduced the Extra Statutory Concession B46 in 1995 and employers and contractors were not penalised provided their company tax returns were received within 7 working days of the filing date.

Once the ESC B46 comes to an end, returns must be filed online by the specified date otherwise contractors will automatically face penalty charges. These can only be removed if a special request, detailing the reason for the delay, is made to HMRC. A spokesman from the Revenue said that every case will be considered on its own merits.

HMRC has decided to withdraw the concession because all returns are now filed online and so postal delays no longer affect filing dates.

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