In the dynamic world of contracting, where each project is hard-won, the importance of a reliable network of contacts should not be underestimated.

While the digital age has expanded our reach, allowing us to connect with potential clients and peers across the globe, the fundamental principle of networking remains unchanged – it’s not just who you know, but who knows you.

Let’s explore the art of leveraging existing contacts and seeking referrals – a proven strategy that can significantly enhance your visibility, credibility, and ultimately, your success as a contractor.

The power of existing contacts

Your existing contacts are your most valuable assets in the quest for new opportunities. These are individuals who already know your work ethic, quality and reliability.

They include past clients, colleagues, mentors, and even friends who understand your professional capabilities.

Here’s how you can harness the power of these contacts:

Stay connected – Regularly touch base with your contacts, even when you’re not actively seeking new work. This can be as simple as sharing an interesting article, congratulating them on a professional achievement, or catching up over coffee. Staying connected keeps you at the forefront of their minds, making it more likely they’ll think of you when opportunities arise.

Showcase your success – Don’t be shy about sharing your successes and milestones. Whether you’ve completed a challenging project, earned a new certification, or received an award, let your network know. Success breeds interest, and your achievements can serve as a testament to your skills and dedication.

Ask for feedback – Seeking feedback from past clients or colleagues is not only a way to improve your services but also a subtle way to remind them of your presence and value. It demonstrates your commitment to excellence and can prompt discussions about future opportunities.

The art of seeking referrals

Referrals are the gold standard of networking. They come with a built-in level of trust and significantly reduce the effort required to convert a prospect into a client, especially where you work in a narrow field.

Here’s how to effectively seek referrals:

Express your availability – Make it known to your contacts that you’re seeking new opportunities and would appreciate their referral. Be specific about the type of work you’re looking for and the value you can provide to potential clients. Clarity helps others understand how they can assist you best.

Offer value in return – Networking is a two-way street. Offer to help your contacts in return, whether it’s through your professional services, introducing them to someone in your network, or sharing valuable information. This creates a culture of mutual support.

Use testimonials and case studies – Testimonials and case studies are powerful tools that illustrate your capabilities and the positive experiences of your clients. Share these with your network and on your professional platforms, such as LinkedIn, to build credibility and demonstrate the impact of your work.

Follow up and show gratitude – Always follow up on referrals, regardless of the outcome. A simple thank you note can go a long way in showing your appreciation and keeping the door open for future opportunities. Remember, every interaction is a building block in your professional relationship.

Are you doing enough?

We all worry that we aren’t keeping in touch often enough. However, even a little bit of contact with existing connections often is better than none at all.

Leveraging existing contacts and seeking referrals are time-tested strategies that can lead to significant opportunities for contractors – including referrals for new work and support building new connections.

With the right approach, your network can become your most powerful ally in achieving a successful and fulfilling career as a contractor.

The latest Budget was an important speech for the Chancellor, Jeremy Hunt, and his Government, as he laid out key measures likely to affect his party’s success at the ballot box later this year.

Although a date for the next general election is still yet to be set, this is likely to be the last time that Mr. Hunt will have a chance to introduce significant changes to taxation and funding and so he didn’t hold back.

Before his announcement, it was unclear exactly what direction the Government would take, following caution from several think tanks about the dangers of significant tax cuts.

While the speech began by outlining the ongoing challenges of the cost-of-living crisis and its main driver, inflation, it soon turned to measures that would boost the economy and personal finances – both in the short and longer term.

The raucous noise from both benches only sought to highlight the importance of the measures announced by the Chancellor.

Mr. Hunt went on to declare that this would be a “Budget for long-term growth” and began outlining measures in the following areas:

• Growth outlook and inflation
• Tax relief for businesses
• Funding for enterprise and key projects
• Property tax
• Personal tax
• Closing thoughts

Growth outlook and inflation

Inflation has been a double-edged sword for the Chancellor, both feeding the rising costs experienced by businesses and the general public, while also filling up The Treasury’s coffers through fiscal drag.

When he stepped into the role, the nation was experiencing one of its highest inflation rates in recent history – at more than 11 per cent – the Chancellor was pleased to announce in his speech that things were back on track.

Measures taken by the Bank of England and the Government, as well as improving global economic conditions, mean that the nation is now on target to hit the all-important two per cent in ‘months’, according to Jeremy Hunt.

The growth statistics produced by the Office for Budget Responsibility (OBR) were also more positive than expected following the Autumn Statement.

According to the OBR’s latest report, GDP growth is expected to reach 0.8 per cent – up from 0.7 per cent growth expected in November 2023.

Similarly, forecasts for 2025 and 2026 show growth will increase to 1.9 per cent and 2.2 per cent respectively. These rates are both higher than previous estimates from the Autumn Statement.

While this will be looked at as a step in the right direction, the reality remains that the UK’s long-term growth outlook remains relatively weak.

Tax relief for businesses

Previous Budgets and Statements have seen the introduction of new reliefs and reforms to existing allowances and thresholds for SMEs.

However, this latest speech seemed far more subdued. The headline increase to the VAT registration threshold to £90,000 will help some smaller businesses, but it comes after a seven-year freeze.

This means that this increase, while useful, will be largely wiped out by the impact of inflation during this period.

The newly permanent Full Expensing capital allowance will also be amended to include expenditure on leased assets, “when fiscal conditions allow”. This will create additional opportunities for businesses to reduce their Corporation Tax liabilities in future.

No further changes were announced to the R&D tax relief scheme, but businesses are already preparing for the previously announced merger of the SME and R&D expenditure credit (RDEC) scheme from 1 April this year.

The Chancellor also singled out the UK’s creative industries with a series of new tax reliefs worth £1 billion.

Eligible film studios in England will receive a 40 per cent relief from business rates for the next 10 years.

Additionally, the introduction of a new UK Independent Film Tax Credit is set to take place, alongside an increase in the tax credit rate by five per cent and the elimination of the 80 per cent cap on visual effects costs under the Audio-Visual Expenditure Credit.

Funding for enterprise and key projects

The Chancellor also unveiled a plan to bolster investment in UK firms with the introduction of a new ‘British ISA’, allowing individuals to invest an additional £5,000 annually in UK equities, beyond the existing ISA limits.

This initiative aims to foster a new generation of retail investors and position the UK as a global innovation hub akin to Silicon Valley.

Hunt also proposes changes to pension fund regulations, requiring disclosures of UK equity investments to promote domestic investment.

Furthermore, the Government will explore ways to simplify the process for individuals to transfer their pension funds when switching jobs.

This strategy includes compelling local authorities and defined contribution pension funds to reveal their investments in UK stocks, highlighting that currently, only four per cent of pension fund assets are invested in UK shares.

Initially outlined in the Advanced Manufacturing Plan in November 2023, the Government pledged to make the UK the premier global location for starting, expanding, and investing in a manufacturing business.

This commitment is being actualised, with the Budget detailing the next stages of implementing the £4.5 billion funding package for these sectors. This funding includes over £2 billion for the automotive industry and £975 million for aerospace, available for five years from 2025.

Property tax

It quickly became apparent during his speech that the Chancellor wanted to tackle key property issues in the UK.

He first announced that the current Furnished Holiday Lettings (FHL) tax regime would be abolished from April 2025 to encourage holiday homeowners to dispose of their properties and discourage future purchases of homes in areas of high demand.

He then went on to confirm plans to adjust Capital Gains Tax (CGT) for second and additional home sales for higher and additional rate taxpayers to bolster the housing market by reducing their CGT rate from 28 per cent to 24 per cent.

The lower rate will continue at 18 per cent for gains within an individual’s basic rate band. This move aims to motivate landlords and owners of second homes to sell their properties, thereby increasing availability for various buyers, including first-time homebuyers and is expected to generate additional revenue throughout the forecast period.

Starting 1 June 2024, the Government will eliminate the Multiple Dwellings Relief, which currently provides a discount for bulk purchases under the Stamp Duty Land Tax system.

Personal tax

The individual taxpayer was very much the focus of Mr. Hunt’s speech, and he dedicated a substantial amount of his time to outlining new tax measures that would focus on putting more money into the hands of working families.

However, to fund this, the Chancellor announced that those with broader shoulders would have to bear the expense.

With this preface, he announced that the current non-dom tax rules would be replaced with a new residence-based regime.

The new regime will be implemented from 6 April 2025 and will introduce a transitional process for existing non-doms to move them on to the new system. The Government also plans to shift towards a residence-based system for Inheritance Tax (IHT).

This, and the cushion provided by higher Treasury revenues due to fiscal drag, meant that the Chancellor could once again cut National Insurance Contributions for employees and self-employed workers.

From 6 April 2024, the Government will reduce the primary rate of Class 1 employee National Insurance Contributions (NICs) from 10 per cent to eight per cent.

Additionally, it will implement an extra 2p reduction in the main rate for self-employed National Insurance, adding to the 1p reduction announced in the Autumn Statement.

Consequently, starting from 6 April 2024, the primary rate of Class 4 NICs for self-employed individuals will decrease from nine per cent to six per cent.

Reforms to the High Income Child Benefit Charge will also see the thresholds based on total household income, rather than the highest earner.

Meanwhile, the current £50,000 threshold will increase to £60,000 from April 2024 as taxpayers transition to the new system. The rate of the charge will also be halved so that Child Benefit is not repaid in full until you earn £80,000.

Closing thoughts

The Spring Budget was packed with measures that were focused more on the individual. While the Autumn Statement that preceded it offered more for businesses.

Together, they provide a framework for the upcoming election. While many may accuse the Government of trying to buy votes, many of the measures will help taxpayers with the cost-of-living crisis and support further economic growth.

This also includes further measures to extend the household support fund, freeze alcohol and fuel duty and a one-off adjustment to rates of Air Passenger Duty (APD) on non-economy passengers.

If you take the politics out of the equation (if you can) and look at the measure presented there are plenty of opportunities for businesses and individuals alike to reduce their tax bills and seek out new opportunities.

The next question on most people’s lips will be when the general election shall be called and what will the opposition’s economic measures look like.

For now, however, there are plenty of actions to take away from this Budget in the coming weeks and months.

Link: Spring Budget 2024

As the general election draws closer, the spotlight falls on the Government, facing significant pressure from within its ranks to implement tax cuts that would benefit contractors and freelancers across the UK.

The Treasury’s announcement that the 2024 Spring Budget is scheduled for the 6 March has set the stage for intense speculation and hopeful anticipation among the contracting community.

The buzz began in earnest at the end of 2023 when it was confirmed on X (formerly known as Twitter) that the Prime Minister, Rishi Sunak is considering measures to bolster the Conservative Party’s standing before the electorate heads to the polls.

Among the voices advocating for fiscal leniency, Jonathan Gullis, MP for Stoke-on-Trent North, stands out as a prominent figure.

He, along with a cadre of Conservative politicians including Liz Truss, David Davis, Robert Buckland, and Sir John Redwood, is pushing for the abolition of the contentious IR35 reform.

This call to action is not without context. The general election, anticipated sometime in 2024, might now be on the cards sooner than thought, thanks to the early Budget announcement.

This move places additional pressure on Chancellor Jeremy Hunt to deliver substantive tax relief in March – a sentiment echoed by many within the contractor community.

Hunt himself has hinted that the Government has more economic headroom thanks to higher tax receipts in the last year – due in the main to rising wages but frozen personal tax rates.

However, since then the UK has been confirmed to be in a recession and several think tanks have said that the Conservative Party’s commitment to reduce national debt as a percentage of GDP may tie the Chancellor’s hands to making sweeping cuts.

The IR35 reform further complicates the tax landscape for limited company contractors, leading to calls from MPs like Gullis for its removal.

Gullis has also hinted at a potential future scrapping of Inheritance Tax, though his immediate advice to the Chancellor is to raise the threshold for higher rate income tax and reduce the basic rate, aligning with Sunak’s aspiration to lower the basic rate to 19 per cent.

The Government’s plans should hopefully all become clear sooner rather than later, especially after the Budget next month.

As contractors navigate this uncertain landscape, the coming Budget holds the promise of much-needed relief and a potential pivot in the Government’s approach to taxation.

With the political stakes higher than ever, the contracting community remains hopeful for a change that could redefine their financial futures.

The ability to forge strong, meaningful connections online can significantly enhance a contractor’s ability to secure new work and build a sustainable career.

For contractors, the digital landscape offers a multitude of channels to showcase their expertise, engage with potential clients, and stand out in their respective fields.

With years of experience working with contractors, we wanted to share a few of our thoughts and strategies for using social media, digital platforms, and personal branding to connect with potential contract providers.

Leveraging social media to showcase your expertise

Social media platforms like LinkedIn, X (formerly known as Twitter), and even Instagram offer powerful tools for contractors to highlight their skills, share their achievements, and engage with their industry community.

However, success on these platforms requires more than just passive participation. Contractors should actively contribute to conversations, share insightful content related to their field, and showcase their projects and successes.

• LinkedIn: Perfect for establishing professional connections, sharing detailed content, and participating in industry-specific groups.Use LinkedIn to post articles, share project updates, and engage with content posted by peers and potential clients.Customising your content and using the right hashtags to appeal to the sectors you’re targeting can significantly increase your visibility and relevance.

• X and Instagram: These platforms are excellent for more frequent, informal engagement. Share quick tips, industry news, and behind-the-scenes glimpses of your work life.

Again, use hashtags relevant to your sector to increase the reach of your posts and engage with potential clients and fellow professionals.

Beyond social media

While social media is crucial, diversifying your online presence can open new doors. Consider the following:

• Professional blogs and websites: A well-maintained blog or website can serve as a portfolio of your work and an exhibition of your expertise. Regularly update it with case studies, industry analyses, and testimonials from previous clients. This not only boosts your SEO rankings but also provides a comprehensive view of your capabilities to prospective clients.
• Online forums and communities: Participate in online forums and communities related to your field. These platforms allow you to answer questions, offer advice, and demonstrate your expertise in a more interactive setting.
• Webinars and online workshops: Hosting or participating in webinars and workshops related to your field can significantly boost your reputation as an expert. These activities show your willingness to share knowledge and contribute to the growth of your industry.

Building a strong personal brand

All of these activities require you to have a strong and well-developed personal brand, but what exactly does this mean?

Think of yourself as a commodity, your personal brand is the unique combination of skills and experiences that make you stand out. Developing a strong personal brand involves:

• Consistency across channels: Ensure that your messaging, visual identity, and tone of voice are consistent across all platforms. This coherence helps in building a recognisable and memorable online presence.
• Sharing your unique perspective: Don’t shy away from sharing your opinions on industry trends and innovations. Thought leadership can set you apart as a forward-thinking professional in your field.
• Professional visuals: Invest in professional profile photos and other visual content that reflects your professionalism and attention to detail.

Targeting by sector and demonstrating expertise

Success in attracting new contract work often hinges on your ability to target specific sectors effectively and demonstrate deep expertise in those areas.

Tailor your online content and interactions to appeal to the industries you’re most interested in or experienced with.

Highlight specific projects, use industry-specific language, and engage with industry leaders and companies on social media.

By positioning yourself as an expert in your chosen sectors, you not only increase your appeal to potential clients in those industries but also set the stage for more meaningful and productive connections.

Our final thoughts

For contractors looking to build better connections online, the key lies in active participation, strategic targeting, and the consistent demonstration of expertise.

By leveraging social media, diversifying their digital presence, and cultivating a strong personal brand, contractors can significantly enhance their visibility and appeal to potential clients.

***PLEASE IGNORE THIS REMINDER IF YOU HAVE ALREADY SENT US YOUR QUESTIONNAIRE***

We are fast approaching the deadline for filing your Self-Assessment tax return, which is Wednesday 31 January 2024.

If you would like Cogent to prepare your tax return, please complete and return the Self-Assessment Tax Return Questionnaire for the tax year 2022/23 as soon as possible.

As we are now very close to the key 31 January date, we cannot guarantee to complete the tax return to meet the deadline, so it is important that you complete the questionnaire as soon as possible.

Please also be aware that if we have already prepared your tax return, this will not be filed until our fee has been paid and the tax return approved.

Outstanding Balancing Payments for 2022/23 and the First Payment on Account for 2023/24 are also due and payable by 31 January 2024 and interest will be charged on late payment.

You can request a questionnaire for 2022/23 by emailing tax@cogentaccountants.co.uk

The standard charge, including VAT, for a basic tax return, is £240 as we have passed the deadline to receive this service at a discounted rate. Please note, more complicated tax returns, where additional work or supplements are required, will be subject to additional charges.

If you have a second shareholder, they may also need to file a tax return, even if they haven’t previously. For further advice, please contact our Tax Department.

Penalties for late filing of tax returns can be as much as £1,600, even when there is no tax due, so please ensure your tax return is filed on time, whether you ask us to prepare it for you, or you have made other arrangements.

Please return your completed questionnaire together with any attachments by email only to our Tax Department – tax@cogentaccountants.co.uk

You are required to file a tax return if:

• You have been asked to file one by HMRC
• You have a tax liability for the year (e.g. additional and higher rate tax, student loan in repayments, high-income child benefit charge or if you have any income which has not been taxed at source)
• You have a new source of income that needs to be declared.

***PLEASE IGNORE THIS REMINDER IF YOU HAVE ALREADY SENT US YOUR QUESTIONNAIRE**

In the wake of COVID-19, many industries saw a significant shift towards remote interactions, such as webinars.

However, as the world has emerged from the pandemic in recent years, in-person events are experiencing a vigorous resurgence.

Whether you like them or not, if you are a freelancer or contractor, attending key events is becoming increasingly beneficial, particularly in building and enhancing your roster of contacts and potential future contracts.

Expanding professional networks

One of the primary benefits for freelancers and contractors attending in-person events is the opportunity to expand their professional networks.

While virtual networking has its merits via platforms like LinkedIn, it often lacks the personal touch and depth of connection that face-to-face interactions provide.

In-person networking allows for more organic conversations, enabling freelancers to create more meaningful connections with potential clients, collaborators, and mentors.

These relationships can lead to new projects, collaborations, and even long-term partnerships, which are crucial for freelancers whose business growth relies heavily on a robust network.

Building trust and rapport

Attending events in person also facilitates the building of trust and rapport, which are key components of successful professional relationships.

Meeting someone face-to-face allows for a more comprehensive understanding of their personality, work ethic, and professional values.

This depth of understanding is often difficult to achieve through digital communication alone. For freelancers, establishing trust is vital, as it can lead to repeat business and referrals, which are important for sustainability in the freelance market.

Learning and development opportunities

In-person events often provide a range of learning and development opportunities. Workshops, seminars, and talks given by industry leaders can offer valuable insights and up-to-date knowledge, which is essential in the ever-evolving freelance market.

Such events also provide a platform for freelancers to discuss their own experiences and industry trends, share experiences, and gain new perspectives, which can enhance their practices and approaches to their work.

It may also expose contractors to new technologies, methods or strategies that allow them to deliver higher-value work with less effort. You only have to see recent developments in AI and automation to appreciate the impact that innovation is having on many industries.

Many of these technologies are demonstrated and launched at these events, allowing you to become an early adopter and gain a competitive advantage.

Increased visibility in the industry

Attending these events increases a freelancer’s visibility within their industry. Being present and engaging in industry discussions demonstrates a commitment to one’s field and helps in establishing oneself as a knowledgeable and active participant.

This increased visibility can attract potential clients who are seeking freelancers with a strong industry presence.

This is becoming more important than ever, as personal brand becomes a key tool in winning the best contracts and expanding your portfolio of potential contacts. Don’t be afraid to put yourself out there and up on the stage (both metaphorically and literally).

Access to new markets and trends

Finally, these events often bring together a diverse group of professionals from various sectors and geographical locations.

This diversity provides freelancers with access to new markets and emerging trends, which might otherwise be inaccessible.

Understanding these new markets and trends can open up opportunities for freelancers to diversify their services and expand their client base.

Choosing the right events for you

Understanding which events are right for you can take time and a little bit of research. We work with a wide range of industries, but here are a few events to consider based on industry type:

Oil and gas industry

• 20 – 22 February – Subsea Expo
• 24 – 28 June 2024 – Turbo Expo
• 21 – 22 May 2024 – Utility Week Live

IT

• 30 April – 2 May 2024 – National Cyber Security Show
• 10 -14 June 2024 – London Tech Week
• 29 – 30 August 2024– TechSpo London
• 18 – 19 September 2024 – Big Data LDN

Banking and Finance

• 6 – 7 March 2024 – MoneyLive Summit
• 21 March 2024 – UK Finance: M&A Conference
• 9 June 2024 – UK Investor Show
• 20 – 22 November 2024 – FIMA
• November 2024 – The Finance Professionals Show

Clinical Research

• 20 – 21 March 2024 – Ace Clinical Trials Summit
• 28 – 29 May 2024 – Global Clinical Trials Connect 2024
• 11 – 12 June 2024 – Annual Outsourcing in Clinical Trials UK and Ireland 2024
• 30 September 2024 – International Clinical Trials Methodology Conference 2024

The resurgence of in-person events offers a unique and valuable opportunity for freelancers and contractors to enhance their contact rosters.

These events provide a platform for meaningful networking, trust-building, learning, and increased industry visibility.

In an increasingly competitive freelance market, the benefits of attending these events can be significant in securing and sustaining a successful freelance career.

HM Revenue & Customs (HMRC) is now using new powers granted to them by the Government to target a key area of tax evasion – online traders.

It is not uncommon for contractors and freelancers to have a side hustle on platforms like eBay, Vinted, or Depop.

However, if you use these platforms, you must now be vigilant about your sales and income generated from them and other additional income, such as short-term lets on sites like Airbnb.

This is because HMRC now mandates these platforms to track and report sellers’ earnings. Operators may incur significant fines for non-compliance.

Effective from 1 January 2024, these rules also encompass short-term rental platforms like Airbnb.

With online selling being a popular means of supplementing income, these new rules could impact many if their earnings exceed a certain threshold.

Understanding the £1,000 allowance

The £1,000 allowance applies to employed individuals with an additional income source. This extra income often comes from irregular and casual activities, such as:

• Freelance writing or designing
• Crafting and selling handmade items
• Pet or house-sitting
• Tutoring

As these jobs are usually casual and might involve cash payments, many overlook the need to pay tax on these earnings, especially at the outset.

In the UK, there’s a £1,000 tax-free allowance for income beyond one’s primary job. Beyond this, you must register as self-employed and file a Self-Assessment tax return to declare your additional income and determine your tax liability.

Implications of the new regulations

For some, these changes won’t impact their earnings if they remain below the £1,000 limit and those regularly earning well above this threshold are likely aware and consistently submit a Self-Assessment.

However, those with earnings in-between should monitor their income carefully to see if it crosses the threshold.

Many individuals with ‘side hustles’ unknowingly omit e-trading income from their tax declarations or fail to submit a tax return altogether.

Therefore, all e-traders and side hustle participants should meticulously record their sales and earnings. This practice will help determine whether you need to pay tax on your income.

HMRC is cautioning contractors in the UK to stay vigilant against tax scams. This warning follows an alarming increase in fraud attempts, with over 130,000 tax scams reported between September 2022 and September 2023.

As the Self-Assessment deadline on 31st January 2024 approaches, taxpayers are advised to be particularly wary.

Last week’s announcement revealed that nearly half (44.6 per cent) of these scams involved tax relief schemes. These fraudulent activities vary in approach, ranging from false reminders to update tax details to threats of arrest for tax evasion.

With an estimated 12 million people completing Self-Assessment, the likelihood of scam attempts is expected to rise in the coming months.

This increase in fraud is attributed to current economic conditions. The Association of Certified Fraud Examiners’ 2009 report highlights a direct correlation between economic downturns and a rise in fraud incidents.

Myrtle Lloyd, Director General for Customer Services at HMRC, has urged taxpayers to be cautious of fraudsters as the Self-Assessment deadline nears. She warns that criminals often use emails, phone calls, and texts that mimic government messages to appear legitimate.

HMRC advises the public to be sceptical of unexpected contacts, which could be scams. Taxpayers are encouraged to check HMRC’s scam advice on gov.uk for guidance on identifying fraudulent schemes.

Over the past year, HMRC has already acted against 60,000 phone scams and removed 25,000 malicious web pages.

However, concerns persist due to recent reports of HMRC’s outdated IT systems being prone to cyberattacks and data breaches, potentially exposing taxpayer information to scammers.

HMRC has reported several data breaches to the Information Commissioner’s Office in recent years, indicating a growing risk.

To combat this threat, HMRC encourages the reporting of any suspicious tax-related communications. Texts claiming to be from HMRC can be forwarded to 60599, emails to phishing@hmrc.gov.uk, and phone scams can be reported on GOV.UK.

It is crucial to learn how to identify and report these scams to protect yourself, your company and sensitive financial information.

***PLEASE IGNORE THIS REMINDER IF YOU HAVE ALREADY SENT US YOUR QUESTIONNAIRE***

If you would like Cogent to prepare and file your 2022/23 tax return and you have not yet sent us your completed Self-Assessment Tax Return Questionnaire, you will need to do so by 31 December 2023 to benefit from our discounted fee.

If you have a second shareholder, they may also need to file a tax return, even if they haven’t previously. For further advice, please contact our Tax Department.

The standard charge including VAT for a basic tax return is £240. Questionnaires received by 31 December 2023 will receive a 50 per cent discount on the basic tax return, charged at £120.

Any questionnaires received after 31 December 2023 will be charged at the full rate of £240.

Please note, that more complicated tax returns where additional work or supplements are required, will be subject to additional charges.

Our deadlines have been set so that we can complete your return in time to meet the HM Revenue & Customs’ (HMRC) online filing deadline of 31 January 2024.

Penalties for late filing of tax returns can be as much as £1,600, even when there is no tax due, so please ensure your tax return is filed on time, whether you ask us to prepare it for you, or you have made other arrangements.

You can request a questionnaire for 2022/23 by emailing tax@cogentaccountants.co.uk

Please return your completed questionnaire together with any attachments by email only to our Tax Department – tax@cogentaccountants.co.uk

You are required to file a tax return if:

• You have been asked to file one by HMRC
• You have a tax liability for the year (e.g. additional and higher rate tax, student loan in repayments, high-income child benefit charge or if you have any income which has not been taxed at source)
• You have a new source of income that needs to be declared.

***PLEASE IGNORE THIS REMINDER IF YOU HAVE ALREADY SENT US YOUR QUESTIONNAIRE**

Going into the Autumn Statement, Chancellor Jeremy Hunt knew he needed to make an impact as the fate of the nation, and his own party’s electoral prospects rested on his 110 measures for business.

In delivering his “Autumn Statement for growth”, the Chancellor made several pledges that he said were designed to help those struggling with the cost-of-living crisis.

Against a backdrop of falling inflation and a fiscal buffer of up to £25 billion, thanks to HM Revenue & Customs (HMRC) growing tax receipts from rising incomes and frozen tax rates, Jeremy Hunt launched into a speech to Parliament full of tax cuts.

For sole traders and self-employed individuals, the Chancellor announced the elimination of Class 2 National Insurance Contributions (NICs).

Presently, self-employed people earning above £12,570 are required to pay a fixed weekly rate for Class 2 NICs, which was slated to increase to £3.70 from 6 April 2024. Additionally, the Class 4 NIC main rate will be reduced from 9% to 8%, further benefiting self-employed individuals.

Regarding pensions, the Government will maintain the Triple Lock, ensuring that the basic State Pension, the new State Pension, and the Pension Credit standard minimum guarantee for 2024-25 align with the average earnings growth of 8.5%.

The Government also plans to tackle the issue of “small pot” pensions by considering a lifetime provider model, which would allow pension contributions to be transferred to an existing pension scheme when changing employers.

This model aims to offer individuals greater control and insight into their pensions. Jeremy Hunt has proposed consulting on giving pension savers a legal right to direct new employers to contribute to their existing pensions, potentially adding an extra £1,000 a year in retirement for an average earner starting savings from age 18.

Finally, as previously indicated, the Government intends to abolish the Lifetime Allowance in the Autumn Finance Bill 2023, with this change taking effect from 6 April 2024.

However, beyond his speech, there was a critical measure hidden within the Autumn Statement documents, which marks a substantial change to the ever-important IR35 rules.

The document revealed that the issue of “double taxation” under IR35 regulations will finally be addressed.

The document says: “The government will legislate in the Autumn Finance Bill 2023 to allow HMRC to reduce the PAYE liability of a deemed employer to account for taxes paid by a worker and their intermediary on payments received where an error has been made in applying the off-payroll working rules.”

This form of “double taxation” typically arises when there is an incorrect determination of IR35 status. In such cases, HMRC attempts to recoup the tax liability from the party paying the fee.

However, this calculation does not consider the taxes already paid by the contractor, leading to HMRC collecting additional revenue.

Rectifying this issue will simplify the complexities associated with off-payroll rules and decrease the financial risk for end-clients and fee-paying parties engaging contractors.