To check this I have tried Filezilla and FireFTP and they both show the correct time.
When I connect with Filezilla it issues the following commands
Status: Calculating timezone offset of server...
Command: mtime "hello.txt"
Status: Timezone offsets: Server: 36000 seconds. Local: 36000 seconds. Difference: 0 seconds
From then on it displays the correct timestamp on files
e.g. 10/09/2009 10:49:00PM whereas WinSCP shows 11/09/2009 8:49:51 AM which is tomorrow i.e. 10hours from now, which is my timezone, so WinSCP is assuming UTC? on the SFTP server. Maybe this is "as per spec" and SFTP servers should not be in the local timezone but it is unlikely that I can convince the host to change, however every other client seems to be able handle it?