The Bank of England has just announced a 0.25% cut to the base rate, in very welcome news for those seeking a mortgage.

This is the signal the market has been waiting for. For independent professionals and contractors, this shift likely means improved affordability for new purchases and more competitive pricing for those looking to remortgage.

What does this mean for your borrowing power?

While a rate cut is great news for monthly payments, the biggest hurdle for professionals remains the same: how lenders view your income.

Even with lower rates, High Street lenders can still struggle to understand your earnings. At Cleerly, we ensure your mortgage offer reflects your daily contract rate, true net profit or all elements of your employed package – not just a simple multiplier of base salary.

With rates moving in the right direction, now is the ideal time to see how much you could borrow on a new mortgage.

 Click the link to check your borrowing options: https://www.cleerly.co.uk/ics-accounting/

The post Bank of England Cuts the Base Rate first appeared on ICS Accounting.

For many contractors, the dream of homeownership can seem like a complicated journey. You might have heard that traditional lenders don’t understand your unique financial situation, from retained profits to project-based work. But with the right preparation and the help of a specialist, you can navigate the process with confidence and turn ‘hard’ into ‘home’. 

Being “mortgage ready” as a contractor is about more than just saving a deposit. It’s about presenting your financial story in the best possible light and being prepared for the questions lenders will ask. Here’s a breakdown of the essential steps.

1. Tidy Up Your Finances

This is the foundational step for any mortgage application, but it’s especially important for contractors. Lenders will scrutinise your bank statements to understand your spending habits and financial stability. 

• Review your bank statements: Look for any red flags, such as gambling transactions or large, unexplained withdrawals. Lenders want to see sensible spending habits. 

• Reduce your debt: Pay down credit card balances and personal loans where possible. The less debt you have, the more you can potentially borrow. 

• Build a strong credit history: Regularly check your credit score and address any errors on your report. A strong credit history shows lenders you are a responsible borrower.

2. Organise Your Paperwork

Lenders require specific documentation to prove your income and stability. Having these documents ready and organised will streamline your application process and demonstrate your preparedness. 

• Limited Company Contractors: Be prepared to provide two or three years of fully audited company accounts, even though some lenders may be flexible with this. You’ll also need your salary and dividend history. A specialist broker, like Cleerly, knows how to work with lenders who consider retained profits and the gross contract rate, which can significantly increase your borrowing potential. 

• Umbrella Company Contractors: While you get paid via PAYE, some lenders may still view you as a higher risk due to the temporary nature of your contracts. Have your contract history readily available, showing the continuous nature of your work, even if the underlying assignments change. A specialist broker can work with lenders who focus on your gross contract value rather than just your net income after deductions. 

• CIS Workers: Lenders often struggle to assess income from CIS payments, which can lead to lower borrowing offers. Be ready to present a clear picture of your income, as a specialist broker can work with lenders who are prepared to look at your gross CIS payments. 

In all cases, a specialist mortgage broker knows how to present this information to lenders in the most favourable light.

3. Demonstrate a Consistent Work History

Lenders want to see consistency and stability in your work. While traditional employment history is straightforward, contractors can demonstrate this by having a strong contract history. 

• Show continuous employment: Lenders may view short gaps between contracts as a risk. Having a history of consistent work, even if it’s with different clients, is crucial. 

• Future contracts: If you have an upcoming contract in place, it can be helpful to share this with your lender to demonstrate future earnings. 

4. Engage a Specialist Broker

This is perhaps the most important step for a contractor. Traditional high street banks often rely on rigid, one-size-fits-all criteria that don’t account for the unique nature of contractor finances. A specialist mortgage broker, like Cleerly, is invaluable because they: 

• Understand your income: They know how to present your full financial picture to lenders, including salary, dividends, and retained profits for limited company directors. They also understand how to use your gross contract value for umbrella company contractors and CIS workers. 

• Access niche lenders: They have relationships with specialist banks and building societies that have bespoke underwriting criteria for contractors. These are lenders you might not find on the high street. 

• Present your case effectively: They know exactly what information lenders need and how to articulate your income stability, even with varying contracts or income streams. 

• Save you time and frustration: They keep abreast of changing lending criteria, matching you with a lender whose policies align with your unique circumstances. 

The process of getting a mortgage as a contractor doesn’t have to be a battle. By getting your finances in order, preparing your documentation, and partnering with a specialist who understands your world, you can navigate the path to homeownership with confidence. 

The post What are the steps for being ‘Mortgage Ready’ as a contractor?  first appeared on ICS Accounting.

As a four-time Which? Recommended SIPP provider, ii want to help you get the most out of your retirement savings. That’s why they have created this free downloadable guide to get you one step closer to securing your dream retirement.

Click here to get a downloadable guide directly to your email and to find more information about our partnership with ii & their August offer follow this link. 

Real stories from real people

See why Mark, an ii customer chose ii to build his financial future.

Risk warning:

Capital at risk. The ii SIPP is for people who want to make their own decisions when investing for retirement. As investment values can go down as well as up, you may end up with a retirement fund that’s worth less than what you invested. Usually, you won’t be able to withdraw your money until age 55 (57 from 2028).

This communication isn’t a personal recommendation. If you’re unsure if a SIPP is right for you, please speak to an authorised financial adviser.

The post Essential Guide to SIPPs first appeared on ICS Accounting.

Umbrella Company Solutions- Recap 

An Umbrella Company, or PAYE Umbrella, acts as an intermediary between the self-employed contractor, and the end client or agency, seamlessly dealing with all salary, payroll, accountancy and taxation administration across multiple contracts, and avoiding time-stealing admin and potential regulatory pitfalls. Offering a wealth of benefits, including smooth continuity of pay, tax deductions, pension contributions and statutory benefits, since their inception around 20 years ago, Umbrella Solutions are increasingly the preferred means of payment for companies and contractors alike. 

Sadly, a minority of unscrupulous companies promote attractive but non-compliant solutions, in reality benefitting only themselves, and leaving the contractor at risk of ending up with a huge unpaid tax bill and potential HMRC litigation. Not only is ICS Umbrella fully compliant, accredited and independently audited, we are open and vocal about supporting contractors to make safe Umbrella choices, whoever they go with. We 100% support appropriate Government legislation to regulate the Umbrella market, and are proactive in keeping up with all developments, messaging, and communicating this to those affected.  

Latest Umbrella Regulation Developments and Proposals 

HMRC and Treasury officials recently met with a task force of Umbrella and recruitment industry representatives to discuss their proposals, initially including moving the liability of employee PAYE fully onto recruitment agencies. While we understand the ambition, and necessity, of removing bad players from the market, this was not considered a prudent solution (a hammer to crack a nut?), by either industry, removing the responsibility from those with the expertise, rigour and compliance to provide it, and putting it onto recruitment (not PAYE and taxation) specialists. 

This was discussed in a laudably open, honest and positive meeting, with the likely outcome (excepting further changes) that PAYE administration will remain with the Umbrella companies, but the agreement of agencies to be equally accountable should a tax liability occur. This is a very sensible, effective and enforceable solution, capitalising on the specific strengths and competences of each sector, fostering closer working together and communication, and providing a clear regulatory framework designed to squeeze any bad actors out of the industry. 

Next Steps 

Publication in draft form is expected any day now. Following further discussion, refinement, committee, legal and voting stages, with further, we hope, industry involvement as it goes, it is proposed to come into effect April 2026.

As a 100% committed and compliant Umbrella provider, we’re very happy with any increased level of Umbrella scrutiny and regulation. Proud of both our long standing FCSA accreditation (the only provider to be approved for Umbrella, PEO, CIS and PSC/LTD), and our proactive SafeRec accreditation, which delivers real-time auditing, monthly reports and RTI checks. 

This really is the time for recruitment agencies to ensure their supply chain is fully compliant. We’ve already started working with several new agencies to support them in doing so, and welcome all enquiries, even if it’s just for a sense check. 

How do I Choose a Safe Umbrella Provider before the Legislation becomes Law?  

Any reputable Umbrella Company should clearly display their certification, such as FCSA accreditation and SafeRec or similar forensic auditing, and these claims are very easy to independently verify: 

Visit the FCSA website to find Umbrella Companies who have passed the FCSA’s rigorous and stringent, independently conducted annual Umbrella Company assessments. Use their search facility to confirm membership, what services that company is certified to offer, and what date next certification is due (ICS Accounting and ICS Umbrella have been FCSA accredited since 2017). 

If a company states they are certified by a forensic payroll auditor like SafeRec, always check to confirm. For example, a search for ICS Accounting will confirm we are fully certified with SafeRec and in receipt of their four-stage auditing: 

• Real-time Umbrella auditing 

• Umbrella auditing at source 

• Total transparency reporting 

• Cross-referencing with HMRC’s Real-Time Information (RTI) 

Want to learn more about ICS Umbrella? 

Fully FCSA and SafeRec certified, ICS Umbrella will continue to provide contractors and independent workers with the simplicity, compliance and confidence of seamless payroll and tax administration, including employment rights, holiday and sick pay, and insurance. 

Not only that, ICS Umbrella Employees unlock a huge range of members’ benefits, from huge discounts on shopping, travel and treats, tips and treatments in our Wellbeing Hub.

For more details and a personalised assessment to see if an Umbrella Solution would suit you, visit: www.icsuk.com/umbrella/, call one of our friendly team on 01524 580720, or email info@icsuk.com. 

The post Welcome Input into Imminent Government Action on Umbrella Company Regulation  first appeared on ICS Accounting.

How was your 2024? As we approach the end of quite a tumultuous year (but haven’t they all felt like that recently?), we thought it was good time for a recap, and key points to carry “forewarned is forearmed” into 2025. The wheel of the tax year doesn’t stop, and tax deadlines will be on us again before you know it, especially for self-assessment tax returners, so don’t risk being caught out!

So, before everyone winds down for a well-earned festive break, take a moment, make a cuppa and join us looking back over some of our key messages.

Self-assessment needn’t be taxing!

We started the year laughing at the shaggy dog stories some people offered HMRC to excuse missing the self-assessment online submission date of January 31st. Needless to say, they didn’t work!

When every penny counts, it’s really not worth running this administrative red light- as well as the £100s of fines, stress and effects of punitive action hanging over you. Perhaps that’s why 4,757 tax returns were filed last Christmas Day, and 12,136 on Boxing Day? Even we, possibly the most spreadsheet-loving people, reckon tax isn’t worth ditching Christmas for!

Santa’s festive self-assessment tax tips are:

1. Don’t bury your head in the sand, talk to HMRC. While a big, intimidating organisation, it is staffed by humans, who appreciate that from time to time life can throw a spanner in the works. As they say: “Help will always be provided for those who have a genuine reason for not submitting their return on time, and the earlier we’re contacted, the more we can help.”
2. To avoid future stress, get the professionals on your side. An accredited accountancy service will create a bespoke package to meet all your company and personal tax returns (plus other headaches including VAT returns, payroll services and annual accounts if required), for significantly less than HMRC penalties.

Top 2024 tips and take-outs

From this direction, it’s hard to see back past the budget, with businesses, employees and contractors measuring impacts. The biggest look likely to come from changes to minimum wage, national insurance, business rate relief and tax bands, however capital gains tax, stamp duty, pension changes, fuel duty freeze, farm subsidy and inheritance tax changes all impact from a personal point of view. With many changes due 1st April 2025, we urge neither kneejerk reactions nor ignoring, but remembering you’re not on your own; when a little cost-effective professional help can cut through the guesswork and remove worries, leaving you free to concentrate on what you do best.

Umbrella solutions can bring huge efficiencies, simplicity and benefits for those working on short-term or multiple assignments, however lack of direct government regulation has allowed a certain number of unscrupulous companies into the market. We greeted the news of a forthcoming parliamentary review of umbrella companies with enthusiasm, and hope a change of government doesn’t derail this. Watch this space, we’ll keep you updated. Fully FCSA accredited, we’re very proud of our umbrella solutions, and this year we really expanded our ICS Umbrella Benefits Portal, giving ICS Umbrella employees access to huge discounts on shopping, health and wellbeing amenities and more!

Could technology help you save time, money and headspace? With advancements arriving daily, there’s no need to be chasing your tail; maximising efficiency and productivity can make the difference between profit and not viable for many small businesses; or simply save you wasting unpaid hours on desk-bangingly tedious tasks. From scheduling tools and project management software to social media and customer relationship management toolkits, we cut through the bewildering array of services out there, highlighting some essential and innovative time-saving tech tools that can help small businesses thrive.

The view from ICS Accounting

It’s been a full and fulfilling year at ICS, busy with our great clients, and getting to know many more. We’re very proud when anyone discovers us through word of mouth or recommendation, so a huge thanks for everyone introducing a friend in 2024; your trust in us drives us to strive even harder for all our clients.

As we’ll as keeping on top of financial developments, many in our dedicated team have added to their training and qualifications. As we celebrated passing our annual FCSA audit, we found out we were also finalists in two categories at The Contracting Awards 2024. We enjoyed a fantastic night out at the black-tie awards ceremony at the Hilton Hotel on Park Lane, London, coming home as winners of The Best Contractor Accountancy (under 1000 clients). It goes without saying that all the team are absolutely thrilled to receive such an accolade.

Getting a foothold in the world of work can be a daunting prospect, so we’re proud this year to have joined the FCA Apprenticeship Levy share scheme: a government-backed programme that allows large employers to transfer a certain level of apprenticeship funds to other businesses, levelling the playing field and helping smaller businesses to take on apprentices and invest in their workforce. Something we’re passionate about, we look forward to opening more doors in 2025.

Everyone at ICS Accounting joins me in wishing you a peaceful festive season and peaceful New Year! 2025 is certain to bring its own surprises and challenges (although hopefully a break from elections!), so remember, for no-obligation advice, or to discuss your individual requirements with one of our friendly team simply call 01524 580720, or email info@icsuk.com.

Best wishes, Colin.

Colin Thompson, Commercial Director, ICS Accounting

The post Reviewing Over 2024- And Ready For 2025! first appeared on ICS Accounting.

The post Government Crackdown on Non-Compliant Umbrella Companies Moves Closer first appeared on ICS Accounting.

Are you on top of business analytics? They might be something you don’t even consider, but increasingly analytics, collecting and analysing data to give you greater insight into your customers and potential markets, are not just about putting yourself a step ahead of your competition, but essential tools for business survival.

As a leading business, limited company, freelancer and contractor accountant, ICS Accounting have built a wealth of experience across more than just tax, payrolls, and compliance. Across 23 years, we’ve partnered with a diverse portfolio of clients by setting up, expanding and promoting their businesses and services.

This month, we’re sharing tips on maximising your business success by not getting left behind in Google’s transition to a new analytics platform, GA4. If your business has any kind of web presence, it’s a topic you can’t afford to ignore!

Yesterday’s Tool: Google Universal Analytics

Google Analytics is the most popular data-tracking and analysis software worldwide, with a 29% share of the market. It’s available for free to anyone with a Google account! Providing statistics and analytical tools for Search Engine Optimization (SEO) and marketing purposes, it can help businesses gauge the success of marketing activities and campaigns, and extract website visitor insights, patterns, trends and demographics.

So if you’re thinking: “I have a business. I have a website. I’m not using analytics. Am I missing a trick?”, the answer’s definitely yes. But if you’re thinking: “I’m using Google Universal Analytics, I’ve got this covered”– then you’re also missing a trick!

Universal Analytics has been the default Google version since its implementation. However, with the introduction of mobile apps, machine learning, and new legislation such as GDPR, this increasingly outdated version was clearly not designed for today’s analytical needs and expectations. In October 2020, Google launched Google Analytics 4, handily known as GA4.

The Times, They Have A’changed!

A huge step change, GA4 is views-based rather than hits-based in its collection of data. This essentially means seamless tracking across the multiple interfaces customers regularly switch between across the course of a day- mobile, app, PC website. Including complete GPDR compliance, rather than a simple upgrade, GA4 has involved a fundamental rebuild to effectively a completely new product. Existing Universal Analytics customers cannot upgrade, you must start anew but don’t worry, we’re here to steer you to how!

And there’s not a moment to lose, because it’s not just about collecting better data, it’s about collecting any at all. From 1st July 2023, Universal Analytics stopped collecting new data. You will be able to access pre-July 2023 data until the platform ceases completely on 1st July 2024, but in terms of fast-moving modern data analytics, that’s like doing market research on the dinosaurs.

Worryingly, the latest data pre-switchover shows that while almost 9 million websites are using GA4, over 37 million websites still use Universal Analytics. And of course, if you have no analytics set up at all, then the souped-up GA4 is the perfect place to start!

Securing Your Future With GA4

As we identified, a huge benefit of GA4 is its focus on a user’s journey through both web and app data, enabling businesses for the first time to seamlessly analyse a typical customer, or potential customer, as they visit your site on their mobile, come back on desktop and then download, purchase, or register through your app.

GA4 also now engages powerful AI-driven predictive customer metrics, helping you to better understand your audience and make data-driven decisions, refinements and targeting more effectively. For example, improving marketing efficiency and driving more effective website traffic and performance by refining different audiences’ behaviours and needs.

Designed with privacy in mind, GDPR compliance is assured. So if you’re still sitting on redundant Universal Analytics, or haven’t engaged with web analytics yet, it really is time to act. Because GA4 is a completely new platform, the journey and learning curve is less diverse for existing and brand-new Google Analytics users. There are many, many websites that will take you through the steps, but beware of getting side-lined in ones which devolve into chat forums, and can confuse any issues.

We recommend heading for Google itself- search for ‘GA4 migration’ or ‘new GA4’ depending on your current setup, and follow Google’s own steps. As with any technology, sometimes not everything goes smoothly but don’t panic! Read each step thoroughly and use the help tools or the support documents within Google’s setup pages if needed.

At ICS Accounting, we understand you have plenty to do without extra projects, but if you have any web presence, this is time well invested in your business. For all your accounting needs, we are the experts! Our stress-free support takes care of the paperwork to payrolls, cut-offs to compliance, as simple as that, giving you 24/7 online visibility, plus access to our dedicated and understanding accounting team, whenever you need them.

For no-obligation advice, or to discuss your individual requirements with one of our friendly team of experts, simply call 01524 580720, or email info@icsuk.com.

The post All change for Google Analytics first appeared on ICS Accounting.

In November 2021, the UK Government called for evidence in the umbrella company sector. This consultation period closed on 22 February 2022 and now, 16 months later, in June 2023, they have published their proposed plans for regulation of the umbrella company market. The consultation document, which can be viewed by clicking here, outlines their plans with a host of options which could impact different parts of the supply chain. Three main objectives have been highlighted for the umbrella market are:

1. Delivering improved outcomes for workers
2. Supporting a level playing field in the umbrella market
3. Protecting taxpayers from the significant revenue losses that currently arise from non-compliance

There was also a new consultation called for, entitled ‘Tackling non-compliance in the umbrella company market’. This consultation closes on 29 August 2023. If you would like to contribute to the new consultation, please see page 48 of the consultation document.

We here at ICS Accounting welcome the first steps into a government-approved umbrella company market regulation. Our compliance record is exemplary, plus we are a member of the Freelancer & Contractor Services Association (FCSA), the industry’s compliance gold standard. It is rigorous and stringent and annual assessments are carried out independently by nationally renowned professional service firms.

Accreditation is awarded to umbrella employers, limited company advisors, and self-employed/CIS contractor providers who can demonstrate the highest industry standards.

If you have any questions about how we at ICS Accounting tackle compliance, please don’t hesitate to contact us at 01524 580720 or email info@icsuk.com.

The post Tackling non-compliant umbrella solutions first appeared on ICS Accounting.

PROs:

• Financial: Whether your circumstances have changed, your savings are diminishing at a quicker rate than expected, a prime reason many people consider returning to work is to improve their financial situation But remember, it can have tax, pension and benefit implications, too.
• Mental health: Studies indicate returning to work after retirement can decrease the risk of dementia due to the brain responding to continued stimulation and challenges with physical, functional, and chemical changes that help keep it active and healthy
• Maintaining social contact: Many retirees report experiencing loneliness or isolation, which the benefits of regular social connection through returning to work can overcome, even decreasing chances of developing coronary heart disease, strokes, and cognitive decline.
• Boredom: For many, retirement is a liberating experience. But, especially if your pension pot doesn’t now extend to as many adventures as you had planned, many retirees reported feeling aimless or struggling to fill their time after just five months, welcoming the opportunity to re-establish purpose and routines that returning to work can offer.
• The opportunity to try something new: Returning to work in what’s been termed an “encore career”, often with less commitments and restrictions on choice, can be an opportunity to explore exciting new avenues that previously you weren’t able to-even, for some, starting your own business. (The number of self-employed people over 65 has more than doubled over the past five years, according to AgeUK.)

CONs:

• Impact on physical health: Keeping active is always to be recommended, but getting older can bring physical limitations and health conditions. Everyone’s health needs differ, so consider carefully the physical and mental impact of potential RTW roles, and if in doubt, speak to your GP.
• Changes to the working environment: While the highest percentage of “unretiring” occurs in the first five years after retirement, working practices, environments and technologies can change with remarkable swiftness, especially in the post-pandemic marketplace. Feeling out of your comfort zone can be uncomfortable for those who have not considered this beforehand.
• The job search and application process can be challenging: While headlines declare hunger for mature employees, applying can be a tough process, especially if its decades since you last had to dust off your CV. Even though age discrimination is illegal under the Equality Act of 2010, statistics still show unemployed over 50s can find it two and a half times harder than younger age groups to secure employment. Take heart that many companies value experience, and there’s plenty of support in broaching the job market and “selling” yourself to your best advantage.
• Financial implications: As well as the obvious: providing an extra source of income, returning to work could push you into a higher income tax bracket on earnings, including personal pensions. Deciding whether to “unretire”, or the optimum hours to work, should be an important consideration, which friendly experts at ICS Accounting can advise you on, all the way to your pocket.

To ensure any unexpected issues do not catch you out, contact our team for advice or to discuss your individual requirements call 0800 195 3750 or email info@icsuk.com.

The post Potential Pros and Cons of Unretiring first appeared on ICS Accounting.

With nearly 9 million adults of working age currently economically inactive, the government is on the cusp of introducing initiatives and incentives to encourage millions back into work, with early retirees a significant section of the target market.

This coincides with increased financial stresses and shortfalls for many people, including the rising cost of living pressures, reduced pension pots, and later access to the state pension.

If your eagerly anticipated early retirement is looking less comfortable, could returning to work be the path for you? Read on to see ICS Accounting’s top tips to consider.

Potential Pros and Cons of ‘Unretiring’

Put your feet up, or best foot forward?

As we’ve seen, there are important considerations to ‘unretiring’, from which sector to choose to optimum working hours for your health, wealth and happiness. The good news is, with an increasing gap in the UK workforce, you’re increasingly in demand, with a greater choice of ‘encore career’ options and full or part-time working patterns.

The even better news is that ICS Accounting are experts in all the financial, tax and benefit implications of returning to work after retirement. For example, did you know there’s no restriction on the amount of hours you can work after retirement, and you can continue to work past your retirement age, choosing to claim your state pension, or defer it for larger weekly payments later on.

A chat with one of our friendly team will ensure you’re not caught out by any unexpected issues like higher income tax. We’re also experts in taking the strain for employers and businesses on all aspects of employee pay, tax and National Insurance. With new government return-to-work initiatives and incentives on the horizon, we’ll make sure you’re in the right place to benefit.

For no-obligation advice or to discuss your individual requirements with one of our friendly team of experts, simply call 0800 195 3750 or email info@icsuk.com.

The post Retired and Considering Returning to Work? first appeared on ICS Accounting.