IT contractors running their own business via a contractor limited company may have certain responsibilities under the Data Protection Act.

According to Contractor Calculator, IT contractors may even be required to register with the Information Commissioner's Office (ICO), the regulator for the legislation.

Most IT contractors only have to register as data controllers when their company stores non-exempt personal data about individuals.

But any freelancer looking to engage in activities in consulting, journalism, marketing or accountancy must also register.

"If a contractor's role expands to include processing information about individuals, the contractor should seek specialist training," the website notes.

Anyone who does not register when required to do so could leave themselves open to heavy sanctions or even fines from the ICO.

Contractor Calculator recently published an Employment Status Tool, designed to help IT contractors to establish exactly what their tax status is and avoid unnecessary confusion with HM Revenue and Customs.