There is some excellent news for IT contractors coming from Brussels, as new legislation is to be introduced regarding payment from public organisations.

The new European law will force governments to pay contractors working smaller tenders within 30 days of delivery, while larger projects will get 60 days, according to the Monsters and Critics website.

Any public body that misses the deadline will be expected to pay eight per cent interest on their bill.

The news provider claims that this move is aimed at helping small businesses, such as IT contractors, who can find themselves in financial difficulties if they are not paid on time.

It is expected that the new law will be formally approved by the EU Assembly in October.

In the UK, contractors are still waiting to see what kind of tax legislation is going to be introduced to replace the much-maligned IR35 code.