Well, didn’t June bring the heat! We hope you stayed comfortable and weren’t too impacted by challenges as the good old British infrastructure struggled to cope. In and out of the office, ICS kept our cool, whether on the road visiting clients, partners and employees, cheering on our national sports teams (not just football, and not just the men’s!), as well as finding inspiration to add even more core benefits to ICS Umbrella – scroll on to read all about it!   

Convening and Collaborating 

Colin set the alarm early to attend CMR Recruitment’s very timely Manchester breakfast seminar focusing on the landscape post Joint and Several Liability (JSL). Great opportunity to catch up and network, as well as thought-provoking presentations from a panel including Josh Bramhall, Daniel Moss, Sebastian Sauca and Hannah Morrison. Uplifting to know that responsible agencies’ early compliance groundwork is paying dividends for employees in terms of trust, care and transparency. 

Helen enjoyed representing ICS at the Lancaster & Morecambe Chamber of Commerce’s June networking event. With lots going on in the area, including the landmark first “spade in the ground” of the Eden Project Morecambe, it was a vibrant, positive sharing of information, plans and ideas.

Travel Diary 

Record-breaking temperatures or not, our sales and partnership support teams were travelling the land, combatting train strikes, melting railway lines and intermittent air conditioning! Sales Manager Alison led the charge, travelling to Manchester and London, where she was joined by Account Manager Kieran. 

Fantastic to see the enthusiasm for our new Umbrella Plus package, especially the inclusion of Bupa healthcare for all umbrella contractors (see more below). Whether it’s our Northern heritage, but we love direct and face to face contact with our clients, partners, contractors and employees, so get in touch to find out when ICS are in your area, or schedule a visit. 

People News 

Hugely pleased to announce Jodie Mace’s promotion to Associate Director of Compliance & Operations. No-compromise adherence to compliance and consistency is our watchword at ICS Accounting, and throughout almost 15 years’ dedicated service, from Customer Service to the last 7 years as Head of Compliance, Jodie has been instrumental in developing the watertight policies and procedures that protect our business, agencies, clients and contractors. MD Colin says: “Jodie has become one of the rocks our business is built upon and I’m excited to see how she will continue to positively influence in this wider role.” Congratulations, Jodie! 

Well done also to Luke, passing the next level of his ACCA (Association of Chartered Certified Accountants) Financial Management exams. Congratulations to Deborah Gardner at our partners Hanley & Co. Accountants, who has welcomed a new grandson. And clearly not put off by the heat, some of the team have been beating the Lancaster University Trim Trail in preparation for taking part in Born Survivor in September, we’ll share their progress (from the sidelines!) 

Windows onto Gratitude 

When the world can seem confusing, and life hectic, it’s always worthwhile to slow down and really notice the small details, like family moments, pets or walks. This is the tenet of our Gratitude Gallery initiative, facilitated by professional photographer and former NHS mental health services occupational therapist Ginny Koppenhol. Capturing informal smartphone snaps of appreciation from everyday life for our office gallery also helps us connect as individuals rather than job titles. 

Beautifully illustrated by this moment of observation from Jodie: 

“I spotted a painted stone in my garden that my son and I made during the COVID-19 lockdowns. Despite the uncertainty we all faced, I’ll always treasure the extra time and simple moments I had with my little boy. With recent industry and legislative changes, life can feel hectic, so seeing that little painted stone was a good reminder of the importance of staying centred. Sometimes the smallest things bring the biggest perspective.” 

Summer of Sport 

You can’t have escaped that there’s been a certain football competition going on. While we dream of scoring the winning goal, our Men’s World Cup sweepstake, with prizes including lunch for the whole team, is hotting up ahead of the final. 

Before then, we have the final of an equally exciting competition for skills, thrills and upsets, the ICC Women’s T20 World Cup. One of the most open contests in years, with the school holidays approaching, it’s enthusing many of us to get out on the pitch, park or playground with our own little sports stars. 

Umbrella+ 

We’re always striving to offer ICS Umbrella Employees more than “just” trusted, compliant and seamless administration and delivery of your salary, tax, deductions, pension and benefits. So we’re thrilled to have launched Umbrella+, a significant upgrade that includes: 

• BUPA Cash Plan, for everyday healthcare costs like dental check-ups, eye tests, and physiotherapy 

• Greater pension flexibility with no increased margin or admin fees for SIPP contributions 

• £100 emergency pay advance facility for unexpected situations 

In addition to:  

• Discounted retail cards from over 120 brands 

• Up to 60% off cinemas nationwide 

• Over 500 vouchers and promotions from the best brands updated weekly 

• Discounts at leading events and attractions 

• Huge discounts at hotels worldwide 

And of course: 

• Full employment rights 

• Dedicated UK-based support 

• SafeRec verified payslips 

• FCSA accredited services 

• Your information and records available 24/7 

• Easy access to your personal ICS advisor 

So, if you want to check you’re getting the full benefit of ICS support, or are interested in discovering more about any of the outstanding bespoke contractor, accountancy and umbrella solutions we offer across a wide range of sectors and specialisms, just get in touch. 

Wishing you a Goldilocks July (not too hot, not too cold, please!),  

Your ICS Accounting Team 

The post Keeping Our Cool and Feeling the (Additional) Benefits in a Record-Breaking June first appeared on ICS Accounting.

Office Insight 

We came into March with another set of records broken: highest number of new client enquiries, new registrations and payments processed. With the imminent Joint and Several Liability (JSL) legislation and increased focus on stability and compliance, the unceasing dedication to trust, care and compliance demonstrated by ICS’s hardworking teams is proving invaluable to increasing numbers of contractor and agency partners.  

Our third cohort of four has started their ‘Gratitude Gallery’ journey, facilitated by professional photographer and former NHS mental health services occupational therapist Ginny Koppenhol. Supporting collaboration and staff wellbeing, having seen two groups go through this incredibly positive collaborative initiative, they are keen to start capturing informal smartphone snaps of appreciation from everyday life to join our office gallery, sharing ourselves as individuals with unique stories, families, and passions rather than our job titles. 

What Glass Ceiling! 

Huge well done to two stars at ICS Accounting who received well-deserved promotions this month. Alison Waterhouse becomes Sales Manager, and Megan Green becomes Senior Business Partnership Manager, a mark of the huge impact she has made at ICS Accounting since joining just over a year ago. MD Colin Thompson highlighted Alison and Megan’s consistently positive and inspiring, team-focussed attitude to business challenges- exactly what we strive for across all our ICS partnerships.  

Out & About 

Some of us were up early for Lancaster & Morecambe Chamber of Commerce breakfast networking meeting at the historic Storey, with a timely presentation on Connect to Work by Nicola Roberts, Employer Engagement Lead at Lancashire Skills & Employment Hub. 

Megan represented ICS at the Recruitment Agency Expo London, bringing together agencies and trailblazing speakers for seminars and discussions on the latest recruitment technologies and cutting-edge HR strategies, always good to expand our toolkit! 

With everyone so busy, we’re looking forward to our forthcoming annual company-wide year-end social, a rare event to connect with colleagues from across the country, celebrate and… draw a veil over whatever else may happen!  

Striding out for our Community  

It was best foot forward for some of the ICS Accounting team, on a walk around the beautiful sunny spring Lancaster countryside, raising funds for Flynne’s Barn, an amazing charity which supports young people and their families coping with cancer, including respite stays, activities and counselling. Even with Colin taking a wrong turn allegedly deliberately (“to test your teamwork and initiative!”), everyone arrived home safely (after relieving Colin of map and compass duties!)  https://buff.ly/cHMfXyF.  

As part of our Social Value focus, ICS staff teams take turns to nominate a local charity to support. Local fundraising can make so much more impact on your doorstep, as can practical support. We’ve pitched in at a local foodbank, homeless shelter and charity allotment, with people who have suffered severe head trauma, and local military veterans suffering from mental health issues. Making us more engaged with our local community, it’s definitely brought members of the team closer together. 

Bringing Back Gold to the Bay 

We’re very proud of our connection with local cheerleading academy, Stormers Elite, who represent so much that is positive for young people today: inclusion, teamwork, trust, physical exhilaration and mental resilience. After sponsoring them to Summit 2025 in the USA last summer, we’ve just cheered them on at the All Levels Championships in Germany, where they triumphed by double gold-medalling, also qualifying them for the European Summit 2027- well done! 

Jump to it for JSL and Beyond 

The Chancellor’s Spring Statement earlier this month focussed attention on the NEET (Not in Education, Employment, or Training) crisis, and the responsibility recruitment agencies, businesses and employers have in creating opportunities and nurturing talent. With JSL legislation about to become law on the 5th April, in today’s increasingly scrutinised and regulated landscape, focus must be on how providers transparently operate in all aspects of payroll accuracy, tax reporting and financial resilience. 

ICS Accounting are currently the only umbrella company in the UK with all four payment solutions FCSA accredited; one of the key reasons so many agencies have partnered with us and continue to do so long-term; trust we never take for granted. If you have any queries, are interested in discovering more about any of the outstanding bespoke accountancy and Umbrella services we offer across a wide range of sectors and specialisms, contact our experienced, welcoming team. 

Wishing you a bright and successful step into spring,  

Your ICS Accounting Team

The post Best Foot Forward, Reaching for the Skies, and Hitting the Ground Running for JSL Legislation  first appeared on ICS Accounting.

Today our goal is to take you through some of the most common confusions.

When Do You Start Paying Corporation Tax?

Corporation tax is mostly associated with limited companies, and it’s true that neither sole traders nor partnerships are liable. However, there are a couple of other groups affected.

You are liable if you’re handling the financials for:

• A limited company
• The UK branch of an overseas company
• A club or co-operative

That third category is a surprise for many, but don’t worry; your unincorporated community group will only be liable for corporation tax if they profit from doing business. For the most part that won’t be an issue, though it’s something the treasurer should be aware of.

What Profits are Liable for Corporation Tax?

Taxable profits as defined for corporation tax includes:

• Trading profits from doing business
• Chargeable gains from selling assets at profit
• Return on any investments

You then pay salaries and other deductible business expenses to arrive at the total taxable profit. Importantly, this takes place before dividends are paid.

Deductible business expenses include:

• Capital allowances for machinery, equipment, and business vehicles when bought
• Ongoing costs of running the business

Expenses incurred in entertaining clients are explicitly not claimable.

In specific industries there are a number of other tax reliefs, including profit from patented inventions or for creative industries. These are specific enough applications that they exceed the scope of this blog; if you believe you may be eligible for one or more, we would recommend discussing these opportunities with your accountant directly.

The final form of relief is marginal relief, which is most relevant to smaller businesses.

What’s the Registration Process for Corporation Tax?

Any limited company is already registered for corporation tax. However, to manage corporation tax online your business tax account will need the relevant services adding. Your business accountant can probably handle this for you, but if you’re taking care of it yourself the government provides a guide on this here.

Calculating Marginal Relief

It’s best to think of marginal relief as a slight relaxation of the corporation tax burden for smaller businesses to help those businesses grow more effectively.

If your annual profit exceeds £250,000, you will pay corporation tax at 25%. If your annual profit is below £50,000, you will pay corporation tax at 19% (the “small profits rate”). And if your profit is between the two values, you will be taxed according to a sliding scale between the two points. There is an official government marginal relief calculator to help with this.

If your business is part of a set of associated companies, these calculations will be different. This has its roots in preventing a single business from dividing into sections that would each qualify for marginal relief.

Should I Pay Corporation Tax Early?

There can be a measurable benefit to paying your corporation tax early. HMRC pays interest on early corporation tax payments, called credit interest. Credit interest is set at 1% lower than the Bank of England’s base rate.

You can pay no earlier than 6 months and 13 days after the beginning of your accounting period. Credit interest then pays out between the date you pay and the payment deadline.

Interest is allocated on the payment deadline day, and is considered taxable income. There is no interest on overpaying your taxes; instead, small sums will typically be carried forward to be offset against future tax liabilities.

There are circumstances in which paying your corporation tax early can be a benefit, always assuming your cashflow remains strong.

However, calculating the value of potential credit interest against the value of being able to use that money between when you would pay and the deadline is a complex question that must be handled case-by-case rather than as a rule of thumb. We would be happy to discuss these strategies with customers.

The post An SME’s Guide to Corporation Tax first appeared on ICS Accounting.

Office News

With the new financial year just over a month away, we got seriously proactive for 2026-7 with a Company Update presentation at our central office, followed by a Senior Leadership Team Strategy meeting at the historic Toll House Inn in Lancaster. Building on a record year with stretching goals and strategies, we’ll be doubling down on the uncompromising level of trust, care and compliance ICS Accounting we’re proud to be known for, watch this space!

Strengthening our leadership strategy, ICS Accounting Commercial Director Colin Thompson steps into the Managing Director role, as John Lyon moves to Executive Chairman, guiding the long?term direction of the company. These moves unite experience and vision in readiness for what’s set to be a ground-breaking year for the rebalancing of the Umbrella industry.

Out & About

Undefeated by storms, floods and the vagaries of Avanti West Coast, Business Partnership Managers Megan and Alison journeyed to London, catching up with familiar connections and welcoming plenty of new ones before Megan continued on to meet-ups in Manchester, Sheffield and Liverpool. If you fancy a coffee or lunch and catch-up with your ICS contact when we’re in your area, just get in touch!

… Clearly catching the travel bug, Megan then headed for Iceland to celebrate her other half’s birthday. A well-deserved break after a non-stop start to the working year.

Community Connection

Apprenticeships are a fantastic way to get a foot in the door in your chosen field, combining work (and salary!) with continuing education, training and qualifications. Congratulations to Corey, who was Highly Commended at the Lancaster and Morecambe College Apprenticeship Awards evening. Well done also to Lancaster and Morecambe College for their fantastic Apprenticeships & Employer event. It was inspiring to meet a great cohort of enthusiastic students, and we loved representing career pathways and opportunities at ICS, including apprenticeships, full and part-time roles, summer jobs and work experience, alongside fellow employers and apprenticeship supporters.

We are proud to celebrate our decade of working in partnership with FreeAgent, award-winning UK cloud accounting software providers designed specifically for small business owners, freelancers and contractors by becoming Platinum Partners. John, Colin, Jen and Simon enjoyed a very interesting and informative event at their head office in Edinburgh, followed by a fantastic meal at Edinburgh castle; all sorts of food for thought!

Pleased to Meet You!

With ICS, it’s all about personal connection, so we felt it was time to make good on one of our New Year’s Resolutions: to reflect our personalities on our ‘About Us’ webpage. Currently ferreting out information about each other- we are building nicely on our ‘Gratitude Gallery’ workshops, so, which ICS staff do you reckon match the following teasers:

Which budding interior designer could be our very own Lawrence Llewellyn-Bowen?

Who’s completed the Great North Swim not once, but four times??

Revealed as a demon chess player, who’s the strategy legend who’s always two steps ahead?

Who has a guitar collection to rival Brian May’s- as well as a comic book collection that’s simply ‘Marvel’-ous!

Which office twinkletoes once danced for the Queen?

Who’s a secret Viking history buff- definitely our speed-dial “phone a friend” on the ‘Who Wants to be a Millionaire’ Norse History round!

All will be revealed on our revamped brand new ‘Meet the Team’ webpage soon!

Springing (Further) Into Action

Being an ICS Umbrella Employee brings a multitude of advantages, alongside trusted, compliant and seamless administration and delivery of your salary, tax, deductions, pension and benefits. We’re extremely proud of our exceptional Employee Benefits Portal, now even better thanks to partnering with HR platform leaders Circular Benefits. Built around their four employee-focussed pillars: Salary Benefits, Health & Wellbeing, Lifestyle Discounts, and Reward & Recognition, just a few benefits ICS Umbrella employees can access 24/7 via their user-friendly interface include:

Discounted retail cards from over 120 brands

Up to 60% off cinemas nationwide

Over 500 vouchers and promotions from the best brands updated weekly

Discounts at leading events and attractions

Huge discounts at hotels worldwide

If you have any queries, are interested in discovering more about ICS Umbrella, or any of the outstanding bespoke accountancy services we offer across a wide range of sectors and specialisms, just get in touch. Keep an eye on our regular blog postings for a wide range of business and employment insights, plus our LinkedIn and Facebook pages for the very latest news, reactions and invaluable advice.

Wishing you a bright and successful step into spring,

Your ICS Accounting Team.

The post Bye-Bye Winter, Hello Anniversaries, Adventures, Employee Benefits and ICS Staff Secrets first appeared on ICS Accounting.

Firstly: 

We can’t miss thanking those that sent the office gifts including JGR Recruitment and My Digital. Thanks for your great partnership and support, which we look forward to continuing in 2026.

Our “Newbie!” 

With our unshakeable commitment to delivering open and accessible trust, care and compliance to all our clients and Umbrella employees, we’re always scouting the best talent to join ICS Accounting. So we’re delighted to welcome Kieran Eccles, who’ll be working alongside Alison Waterhouse, ensuring the service to our Agency partners is the best in the business. Welcome to the team, Kieran! 

Congratulations 

Learning doesn’t stop at entry to ICS, so well done to our latest studious team, gaining their next level of professional qualifications: Luke, Adam, Kim and Penelope. 

Office Insight  

Did you set any New Year’s Resolutions? It’s much easier to resist the lure of chocolate when there’s tempting choices in sight and reach; we’re loving our weekly fruit deliveries from Lancaster fruit and veg champions George Speight & Sons. Adding yummy granola and energy balls from small-batch independent food producer Nourish Bites, supporting local really is delicious! 

Growing Gratitude in 2026 

Some of you may know about our Gratitude Gallery initiative, in partnership with professional photographer and former NHS mental health services occupational therapist Ginny Koppenhol. Supporting collaboration and staff wellbeing, participants take spontaneous smartphone snaps capturing informal moments of appreciation from everyday life, which are shared, discussed, and examples printed to form a visible ‘Gratitude Gallery’. 

2026 sees the next tranche of this 12-month work-time investment, with staff who’ve seen results from the first courses eager for their turn to take time to be creative, share, and learn a new skill. It’s not about judgement, competition or the perfect photo; rather, simply capturing a moment and sharing ourselves as individuals with unique stories, families, and passions rather than our job titles, I’m sure we’ll share more images and updates as we continue. 

Community Connection 

The diet was definitely knocking on the door after the Lancaster & Morecambe Chamber of Commerce Christmas lunch! 2026 looks to be another busy year for LMCC, connecting, supporting and representing North Lancashire businesses, especially with the anticipated Morecambe Bay Eden Project moving from plans to physical construction. 

It’s always rewarding, and fun, to support the next generation of students and see the potential waiting for them. January kicked off with a talk at Lancaster and Morecambe College to AAT (Association of Accounting Technicians) students, followed by an inspiring Careers Fair with Year 10 and 13 students at Morecambe Bay Academy. 

Thanks to Josh Bramall from CMR, leading recruitment agency for the contractor, payroll and accountancy sector, for inviting Colin to a valuable event, discussing the opportunities and challenges of Making Tax Digital, rolling out to sole traders, the self-employed and landlords from this April. With excellent speakers, including David Rose from FreeAgent and Gio Goggioli from Markel, it was a valuable and timely day. 

No Time to Snooze in 2026 

With April 2026 heralding various budget and legislation changes, as well as Making Tax Digital and a busy self-assessment season, we’re already ‘on it’ staying ahead of the curve on our clients’ behalf. This includes strengthening our partner relationships and delivering agency information sessions, ready for April and beyond. 

With welcome Umbrella Company Legislation approaching, we’re proud that professionalism and trust sit at the heart of everything we do. Currently, the only Umbrella Company in the UK with all four payment solutions FCSA accredited, we never take our earned trust and long-term agency partnerships for granted. For friendly assistance and expertise with any aspect of accountancy, payroll, employment services, agency and Umbrella coordination, just get in touch. Our regular blogs give you a wide range of bitesize business and employment insights, plus our social accounts offer the very latest news, reactions and invaluable advice. 

With best wishes for a bright 2026 for you, your work and your business, 

 Your ICS Accounting Team 

The post Resolutions, Recruitment, and Hitting the Ground Running in 2026 first appeared on ICS Accounting.

The Shape of AI is Changing

At the end of 2022, AI became part of the conversation for people outside of computer programming.

At the time, there was an expectation in some circles (and fears in others) that it could soon mean the end of many types of job. Four years on, most employers are coming to the conclusion that AI can’t fully replace skilled jobs. Instead it now represents an opportunity, if properly handled, for contractors to work more efficiently.

AI can be used to accelerate a number of traditionally slow processes, allowing you to handle more in less time. Contractors who control their working time can take on more challenges or free up more time for other things, with obvious benefits.

However, we do have to offer a word of caution. It seems well established now that LLM-based AI will always hallucinate information at least sometimes, and that has to be caught. Use AI when you have a good idea what the outcome would be, so that you can see if something’s thrown it out of line.

JSL Rules Affect Umbrella Companies & Recruitment Agencies

Upcoming reforms to how umbrella companies work will come into play on the 6^th of April this year. This will impact a great many contractors, and while it’s designed to protect them it may mean many have to find new positions or representation.

We wrote about this in detail here, but ultimately, if you’re not sure what the impact on you will be you’re encouraged to talk to an accountant who can give you specific information.

Making Tax Digital

Also coming in on April 6^th is a new phase in the rollout of Making Tax Digital. The threshold for sole traders (and landlords, but our focus today is on freelancers) is dropping to £50,000.

For many of you, this will not be a problem as you’ve either moved to this standard already or you’re working with firms like ICS Accounting who are prepared for the switch, but those of you who do tax last-minute and earn over £50,000 should be aware you’ll be moving to quarterly last-minute deadlines instead!

Niche Skill Sets are On the Rise

All the comments we hear suggest that having specific niche skills is set to be a huge asset in the job market this year. In construction we’re hearing rumours that ‘green’ skills, making more environmentally-friendly buildings, are particularly sought after at the moment; meanwhile, IT contractors are expected more and more to build their familiarity with particular tech stacks or industries.

Older Freelancers May Encounter Pension-Related Income Tax

In April the state pension rises again, with an annual payment reaching £12,548. The personal allowance threshold for income tax remains at £12,570, just £22 ahead.

Some older contractors reaching pensionable age may have been planning a semi-retirement based on smaller contracts in addition to state and other pensions; this change, though a benefit overall, may mean these contractors want to reconsider how much additional work they take on.

Speaking to a contractor accountant may help you plan your finances more valuably.

Across the Board

Whatever your preferred role and goals, you’re going to benefit in 2026 from a deeper understanding of your own financials. Get in touch and we’ll be happy to help.

The post What Does 2026 Look Like for Contractors? first appeared on ICS Accounting.

These aren’t the only options for contractors. A contractor with a limited company working outside of IR35 can also use a PAYE payment model if they choose. Nonetheless, lately people have been comparing the two models specifically, so let’s take a look.

Tax Implications: PAYE vs. Umbrella

At the most basic level, under the agency PAYE model things are simple, with all of the responsibility falling on the agency that is engaging the contractor to make the correct deductions for income tax, National Insurance contributions (NICs), and workplace pensions. PAYE also provides full statutory benefits. Not all agencies offer this and you may work on multiple assignments with different agencies so you may prefer to choose an umbrella company.

An umbrella company becomes the employer, forming an additional level between the end client, agency and contractor. It can reduce administration for the agency, means you can work on multiple assignments with different agencies and with both options, you’ll need to ensure they’re operating compliantly.

That’s some reasons why which is better is so hotly debated – it doesn’t just depend on your own financial situation and plans.

If you’re also thinking about working through your own limited company, it’s particularly important to understand whether the role is inside or outside IR35, as that has significant ramifications for your final take-home pay.

Ease of Operation: PAYE vs. Umbrella

For the end user, a compliant umbrella solution can be simpler, reducing your administrative load; payroll, compliance, and benefits are processed by the umbrella solution itself. This is particularly useful for contractors carrying out many shorter-term assignments as it ensures you will remain compliant throughout with minimal extra work. You’ll receive the same statutory benefits as PAYE.

At the time of writing, of course, April 2026 isn’t far in the future – and at that point a number of reforms come in for umbrella tax obligations. There’s more detail in the linked article, but for the short version: you can expect to see fewer umbrella solutions available for a time, as the new legislation tightens requirements for umbrella companies. This is a positive move for contractors under umbrella solutions in general, but may mean some need to move to a more compliant Umbrella solution, such as ICS’.

One Question, Many Answers

In general, the guidance above should give you a rough idea of which solution is more likely to benefit you. However, every arrangement is different. If you’re not sure which option is best, please get in touch and we’ll help you put them both in perspective.

The post PAYE or Umbrella? first appeared on ICS Accounting.

As we work with a number of contractors and subcontractors who operate under the CIS, we thought it was worth taking a look at how tax obligations actually work within the scheme – including what you have to do to be paid correctly in the first place.

Registering for the CIS

If you qualify for the CIS as a contractor or as a subcontractor, you have to register with the scheme in order to take advantage of it. If you fulfil both roles, you must register as both.

You can register as a contractor if you pay subcontractors for construction work as a business, or if your business has spent more than £3million on construction work in a 12-month period since making your first payment.

Assuming your business is UK based, the process to register as a contractor is based on the process for setting up as a new employer. If the business is overseas but still carries out construction work in the UK, there is a different process, for which guidance can be found on the government’s own site.

Registration as a subcontractor requires you to submit:

• Your legal business name or trading name
• Your VAT Registration (presuming you are registered for VAT)
• The date you started trading
• Your business’ Unique Taxpayer Reference (UTR)

You may also need to provide other information if appropriate, including:

• A copy of a relevant Joint Venture Agreement
• The details of a registering partner, including UTR and National Insurance Number
• Your own National Insurance Number
• Your Company Registration Number

You can register online using your UTR or a Government Gateway user ID.

If you don’t yet have a UTR, you can create this by registering as a new business for Self Assessment. If you select ‘working as a subcontractor’ when the prompt comes up, you’ll register for both Self Assessment and CIS simultaneously.

What Work is Covered by the CIS?

As always with government schemes, there are specific definitions and exceptions to the work covered. Covering these fully is beyond the scope of this article, if you believe yours is an edge case we would recommend a specific consultation.

In general the CIS covers most construction work done to permanent or temporary buildings or structures.

Construction work is further defined, covering:

• Laying foundations
• Access works
• Demolitions and dismantling
• Alterations, repairs, and decorating
• Installing electricity, heating, lighting, ventilation and plumbing systems
• Building work
• A deep clean to the interior following completion of construction

There are some jobs within this which do not fit into the CIS, and if you only do these tasks you do not need to register.

These include:

• Scaffolding hire (but not scaffolding assembly or dismantling)
• Surveying
• Architecture
• Carpet Fitting
• Delivery of Material
• Any work on-site that can be clearly said not to be construction, including running canteens, managing site facilities, etc.

For the most part, while the edges of these definitions may be somewhat loose, we would expect that you’ll already know whether you fall into an exception or not but, again, if you’re in an edge case, do check!

The CIS 340 guidance issued by the government was recently updated if you’re unsure.

The Payment Process Under CIS

Make sure that you tell the contractor paying you the specific legal business name or trading name you used while registering for the CIS, and provide them with your UTR. These are used to verify your eligibility for deductions.

A contractor should pay you with deductions made at the standard 20% rate.

However, if you have not registered, if the business name they provide is not the one you registered with, or if they can’t verify you through your UTR, deductions must instead be made at the higher rate of 30% – a significant difference!

You will be provided with monthly statements of payments and deduction. You can use these to cross-check whether you still owe tax and/or National Insurance, whether everything is already correct, or whether you’re due a refund. If you have contractor accountants working for you, we will be able to deal with this for you.

What Does Not Receive Deductions?

Certain aspects of your invoice will not receive deductions. These are:

• VAT
• Consumable stores
• Plant hired for the job
• Manufacturing or prefabricating materials
• Materials you paid for directly

Evidence may be requested for material you directly paid for. The contractor will estimate this cost if no evidence is provided, so as always, we recommend you retain all receipts.

Gross Payment Status Under CIS

You can instead avoid deductions by applying for gross payment status when you register for the CIS. Under this status your contractor will make no deductions, and you take responsibility for paying all deductions in full at the end of the year.

If you operate as a contractor limited company, you will handle all deductions in your Corporation Tax return as you otherwise would.

Paying Tax and Claiming Deductions Under CIS

Responsibility for correct tax and NI payments remains with you, even if contractors have made deductions through the year. As a sole trader, you will need to send in your Self Assessment tax return as you would otherwise. There is a ‘CIS Deductions’ field to include those deductions contractors have made on your behalf. You should also submit the full amounts for each invoice, not the amount paid after deductions.

As a limited company, if you do not have gross payment status, you must claim your deductions back through your monthly payroll scheme, not through the Corporation Tax return – attempting to claim them this way may lead to a penalty, so be careful!

Instead, send your monthly Full Payment Summary to HMRC, along with an Employer Payment Summary (EPS) in which you should include your total CIS deductions for the year to date.

HMRC will then calculate the balance, taking your CIS deductions off what you owe in PAYE and National Insurance. The balance must be paid by the usual date – however, if your PAYE bill is at zero and there are still deductions to claim back, you can carry these forward to the next month or quarter, provided that you are still in the same tax year. You should note in this case that you have nothing to pay in your EPS.

If you have any further questions to ask about how the CIS affects you specifically, why not drop us a line and we’ll see what we can do to help?

The post Your Tax Obligations Under the CIS first appeared on ICS Accounting.

What you might not know is that there are also financial reasons to go sustainable, thanks to a range of green business tax incentives.

Understanding Green Business Tax Incentives

There is a surprising variety of different incentives which can make going green pay.

For example, if you’re installing energy-efficient equipment (LED lighting, insulation, and even some heating systems) through AIA or full expensing, you can claim 100% tax relief in the first year against capital allowances. Your equipment will need to meet HMRC criteria, but a reputable installer will already have looked into this and will be able to guide you in what is appropriate to your business and budget but also appropriate.

(You can also claim capital allowances when investing in renewable energy like solar power systems, but not through a specific green incentive. However, this can make the initial costs of installing the system more acceptable, and on average solar systems ‘earn out’ their costs for businesses in about four years, with another two decades plus of lifetime to save you money.)

It’s also worth talking to the British Business Bank about their Green Finance Initiatives, which can support you in a number of green endeavours depending on your eligibility.

Lastly, while few of our readers will qualify, if your business is particularly energy-intensive, you may qualify for the Climate Change Levy relief. This would involve committing to energy efficiency improvements and entering into a Climate Change Agreement – but if you’re already looking to improve efficiency, this is a way to make that easier.

Understanding Environmental Tax Incentives

As you would expect, you can qualify for environmental tax investments by taking actions to reduce environmental impact. This includes energy efficiencies, moving to EV (electric vehicle) fleets rather than traditional vehicles, implementing robust and effective recycling programs and even taking offices paperless.

The specifics of what targets need to be hit and how these can affect your corporation tax and local business rates will be too varied to be within the scope of this blog. If you are planning to improve your environmental impact, or if you have already done so this year, it’s worth talking to someone who understands the legislation about the specifics of your program to learn what it can do for you.

The government’s own information can be found here.

The post Tax Incentives for Sustainable Businesses first appeared on ICS Accounting.

The appeal of the contractor life is built around freedom, including the freedom to work where you choose. What you’ll need to remember as you start on your journey is that there’s plenty of responsibility to take on to go with it.

Key parts of that responsibility involve finances, from managing your finances to filing taxes in a way that’s fully compliant.

Follow our checklist below as you start out on your journey, whether you’re a contractor or self-employed starting a new business up, and you’ll be covered financially – compliant with legislation and able to manage your finances well from the off.

Choose Your Legal Structure

If you’re starting out as a small business, you might be a sole trader or a limited company. Contractors can also be sole traders, limited companies, or you can use an umbrella solution – which puts you into a legal structure as an employee.

Much has been said about the pros and cons of each, and we recommend you discuss this with an accountant as which option works best for you will vary significantly based on your specific plans and circumstances.

In brief, however, which you choose will affect your personal liability, how you get paid (and how much) and what your tax obligations are. You can see why it’s important to get this right!

Get Registered with HMRC

Registering with HMRC is a requirement for all businesses in their first year of trading, but depending on which model you chose, you might have a little more time.

A limited company must be registered with Companies House and signed up for Corporation Tax, and this should be done before the first payday – and yes, that’s true even if the only person you’re paying is yourself!

On the other end, you can’t register more than two months before the first payday.

As a sole trader, you should be registered before October 5^th in your first tax year. You’ll want to register for self-assessment and for Class 2 NICs (National Insurance Contributions).

These are the first deadlines that you can be penalised for missing, so make sure you hit them. Set reminders ahead of each other deadline you’ll have to file for – tax returns, etc. – to ensure they’re done and done correctly. We recommend this even if you’re keeping your records up to date, for peace of mind.

For example, your income tax Payments on Account will be due on January 31^st and July 31^st each year.

Organise Your Business Finances

Even if you’re a sole trader and your financials are inextricable from those of your company, we recommend setting up a business bank account. It’s useful to keep your finances as well separated as possible, and it makes it much easier to record business incomings and outgoings when they’re the only things associated with a single account!  You can always transfer money back into your operating account in the event you need to, but keeping clear what money is spoken for by your business and what money isn’t can help you avoid getting into that trouble to begin with.

If your business is a limited company, of course, having a separate bank account is a legal requirement.

Set Up Accounting Software

If you take away only one thing from this blog, let it be this: Don’t trust your finances to Excel or Google Sheets. While these programs are great at the things they’re designed to do, it’s easy for an error to be made just once and have done huge damage by the time that error is discovered.

If you’re working with an accountant, you may have access to cloud accountancy software as part of the package. Being able to access everything directly, wherever you are, can be a huge benefit.

Even if you’re not, there’s good reason to get familiar with accounting software from the off as Making Tax Digital phases in for sole traders and landlords earning over £50,000 annually in April 2026. More on this below.

Know Your Tax Obligations

By this we don’t necessarily mean you should keep up to date with all legislation and rulings affecting your tax (although someone involved in your accounting process should be!) but you should have enough information to be able to approximate your rough tax obligations and keep that separate from your operating expenses.

Know Your Tax Reliefs

Just as it’s important to know how much you’ll owe, it’s also important to have a good idea of where tax reliefs and expenses can help lighten the load.

Travel costs, capital allowances, and many other outgoings have reliefs associated with them, but of course it’s not quite as simple as that; there are limits to how much can be claimed. The field of expenses is a thorny one and well beyond the scope of this blog, so we will simply recommend you discuss this with an expert to be sure.

Making Tax Digital

The government’s Making Tax Digital program has been in the works for some time. With the new tax year starting in April 2026, sole traders and landlords earning over £50,000 will need to comply with this initiative.

This means your bookkeeping will need to be digital, with quarterly updates submitted only using MTD-compatible accounting software.

Those making £30,000 or more will follow on the next tax year, and most businesses are already following these guidelines.

Appropriate software does have the additional benefit of making bookkeeping much simpler for your business’ own requirements.

Schedule Time to Plan for the Future

One of the biggest advantages of self-employment is that building your brighter future is entirely in your hands, and one of the biggest advantages of accurate, ongoing bookkeeping is that it gives you the information you need to plan your business’ future.

We recommend combining these facts and regularly taking the time to consider how you can build what you’re doing for the future.

If you have any other questions, please just let us know. We’ll be happy to help.

The post Your Self-Employment Checklist for 2026 first appeared on ICS Accounting.