Contractors could benefit from a new government computing scheme, according to reports.

The government are planning a new computing strategy involving cloud computing - an industry gathering speed worldwide.

Cloud computing refers to the hosting of services on the internet, meaning that information and services can be accessed remotely.

The government's service will be called G-cloud and according to Ben McCluggage, deputy Government Chief Information Officer, will allow small and micro businesses to move into the 21st century.

He said that the initiative will allow organisations to interact effectively online.

According to Mousetrap, he said: "It's an SME world, where SMEs can interact and we can use the G-cloud to empower and allow them to offer services to non-government customers and help grow the UK tax growth and allow us to interact at an innovating level."

This comes after news that contractors' tax could soar if new proposals from the Mirrlees Review are adapted.