Please note that due to the Easter break and holiday commitments next month, our offices will be closed on the following days in the next couple of weeks:
We will be open for business as usual on all other dates.
We thank you in advance for your understanding.
The new Companies House ‘Identity Verification Process’ launched on 18 November 2025, making it a legal requirement for new and existing Company Directors and Persons with Significant Control (PSCs) to verify their identity over a 12-month period, as and when their company’s annual Confirmation Statement and PSC ID are due for filing.
This verification process will help deter those wishing to use companies for illegal purposes.
Anyone setting up, running, owning or controlling a company in the UK needs to verify their identity over this 12-month period in order to prove they are who they claim to be.
We have been writing to clients over the past few months and are continuing to do so before it is time for us to file their company’s annual Confirmation Statement and PSC ID, with full details of how to apply to Companies House for their unique filing code.
Once you have received an email from us, you should attend to it without delay.
It is also extremely important that you forward the unique filing code to us as soon as it has been received from Companies House, as we are unable to file the company’s Confirmation Statement and PSC ID without it and this may incur unnecessary late filing fines and penalties.
Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is one of the biggest changes to the UK tax system in recent years.
It will affect many self-employed individuals and landlords, so it’s important to understand what’s coming and how to prepare.
What is MTD for ITSA?
MTD for ITSA is a new way of reporting income to HMRC. Instead of submitting one Self-Assessment tax return each year, affected taxpayers will need to keep digital records and submit quarterly reports and an End of Year Declaration, BUT it only applies to individuals with income from self-employment and/or property.
When does it start?
MTD for ITSA will be introduced in phases:
Please note that salary and dividends from a Limited Company is not considered Self-Employment income.
For clients of Cogent Accountants for whom we prepare Tax Returns, we will know the relevant figures for turnover and we will contact you if you need to register for MTD for ITSA.
For those clients we DO NOT prepare Tax Returns for, you will need to address the MTD for ITSA urgently.
The global uncertainty caused by the ongoing conflict in the Middle East and Ukraine has sent lenders into a spin, as inflation in the UK is likely to rise.
As a result, the UK mortgage market is experiencing a period of high volatility, which is causing rates to rise across a number of mortgage products.
Contractors can often find it more challenging to obtain and renew mortgages in comparison to workers who are directly employed by a company, so it is important to stay on top of these challenging times.
What’s happening right now
At the moment, mortgage rates are rising quickly, with average fixed rates now above 5.5 per cent at the time of publication.
Many lenders are frequently repricing or withdrawing deals given to borrowers, which is making it harder to secure a rate and manage affordability if you are buying a new home or remortgaging.
So far, more than 1,000–1,500 mortgage products have disappeared from the market and some of the best deals now only last a few days due to rapid changes.
The Bank of England base rate is currently 3.75 per cent, but expectations of it falling later in the year have changed as global events are expected to lead to inflation, in a large part due to higher energy and fuel costs.
What this means for you
Unfortunately, borrowing costs have increased noticeably in a short space of time, with first-time buyers and those with a small deposit being affected the most.
Lenders are tightening their affordability criteria and restricting products to certain groups. This is exacerbated by repayment costs rising alongside wider cost-of-living increases due to inflation.
The dilemma, do you fix now or wait for a better rate in the near future? At the moment, it is hard to predict what direction the mortgage market will take, so it is best to seek professional advice from a broker who specialises in products designed for contractors if you are concerned.
Specialised mortgages for contractors
We understand that many of our clients will need advice on the subject of contractor mortgages and we can recommend you to a quality firm providing professional mortgage advice that you can trust and who will work hard to find the best solution for you, whatever your particular requirements.
We have developed a close relationship with Windfall Finance so that you can draw on their experience and expertise to meet all of your mortgage needs.
Please contact Jeremy – jeremy@cogentaccountants.co.uk – for further details. You may receive preferential rates from Windfall Finance if you are a client of Cogent.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Financial advice given by Windfall Finance is regulated and authorised by the Financial Conduct Authority.
Going into the latest Spring Statement, the Chancellor made it very clear that this would not be a full fiscal event and that any new policy changes would be off the table.
Rising to her feet in Parliament that is exactly what Rachel Reeves delivered, but it was against a back drop of rising economic uncertainty that she could not have predicted when she set the date for her forecast.
In her opening words to the MPs gathered, she made it very clear that the ongoing conflict in the Middle East was adding considerable obstacles to improvements in the global economic outlook.
Already, oil and gas prices have surged and many of the world’s leading trading floors have recorded significant downturns, but nevertheless Reeves painted a picture of a UK economy that would continue to grow.
Some businesses and individuals may be thankful for little or no change, but others are likely reviewing the Statement and wondering why Reeves didn’t do more to lay the ground for help with a new, looming cost crisis.
Economic outlook
The Chancellor was keen to demonstrate that the Government’s existing plans would deliver “economic stability in an uncertain world.”
The Office for Budget Responsibility (OBR) report, delivered to The Treasury on 26 February, already painted a picture of slow growth prior to any knowledge of a growing global conflict.
The OBR’s report shows that the nation’s growth forecast has been reduced in 2026 to 1.1 per cent – down from the 1.4 per cent growth forecast in November’s Autumn Budget.
However, from 2027, growth is forecast to increase to 1.6 per cent (up from 1.5 per cent from last year’s forecast) and will grow at a similar rate in 2028, before slowing slightly to 1.5 per cent in 2029 and 2030.
Whilst the Government may be focused on this positive growth, the predictions is still far below GDP growth seen in the years ahead of the 2008 financial crisis – almost two decades ago.
Despite this weaker economic performance and the anticipated rising costs from global conflict, the OBR has forecast that inflation will actually drop to 2.3 per cent in 2026, down from the 2.5 per cent forecast in the Autumn Budget. It believes that the UK will still meet its target of 2 per cent inflation by 2027.
As many economic pundits have already pointed out, this forecast may have already been out of date at the time it was delivered due to the impact of global conflicts.
Combined, these events create a powder keg of economic uncertainty, which could restrict investment and decision-making within many businesses.
Unemployment rising
Unemployment is expected to rise at a far quicker rate this year – increasing from 4.75 per cent in 2025 to a peak of 5.3 per cent in 2026.
This is quite a significant rise, given that the last forecast in November had expected unemployment to only increase to 4.9 per cent this year.
The OBR has also raised its forecast for unemployment in 2027 to 4.9 per cent, from 4.6 per cent previously.
In its report, the fiscal watchdog said that “subdued hiring demand” meant that fewer jobs were available, with the Chancellor pointing out that more would be done to tackle unemployment, in particular, to help young workers into a career.
Long-term, the forecasts predict that the unemployment rate will fall gradually to 4.1 per cent by 2030/31.
The biggest barrier to this may remain the challenges business face when hiring. Experts, like the Bank of England, have suggested that the Government’s previous fiscal policies, including increases to the National Minimum Wage and the National Insurance hike, have caused employment costs to rise.
The impact of conflict
We can’t ignore the elephant in the room and neither did the Chancellor, but the current conflict in the Middle East is likely to have significant financial ramifications.
Rachel Reeves recognised that the actions of those involved, including the closure of one of the world’s most important waterways – The Straits of Hormuz – would have a knock-on effect on oil and gas prices.
The Chancellor promised no more austerity and confirmed that the public purse now had greater headroom to sustain spending, without having to borrow as much.
Whether this means fewer tax rises in future is not yet clear, but what is, is that the longer the current conflicts roll on, the greater the impact on global business.
This will have a trickle-down effect on many aspects of our lives, from energy costs to the price of transportation, all of which will add additional cost to the way we live.
The Government’s plans
The fact that the Chancellor didn’t address the challenges ahead by creating any new fiscal policies, including support for SMEs, may be questioned by some.
She was trying to sell a picture of stability, by confirming that in future the single fiscal event – promised in the Labour manifesto – would mean longer periods without disruptive change.
However, given the events of recent days, some may query why the Chancellor didn’t use this opportunity to provide greater reassurance or outline proposals that might help businesses weather the economic storm ahead.
In two weeks’ time, Rachel Reeves will speak again as she delivers her next Mais Lecture. During her statement she confirmed that this speech would “set out three major choices that will determine the course of our economy into the future.”
Preparing for an uncertain future
Whilst many businesses will welcome the lack of change within the Spring Statement for the stability it brings, the wider world of finance is less certain and will be dependent on a number of factors outside of the control of even the UK Government.
That is why it is more important than ever for businesses and individuals to have a clear picture of their financial health, especially ahead of the fairly significant tax changes within the next few tax years outlined in the previous Autumn Budget.
To read the Chancellor’s full speech, please click here, or to read the OBR’s economic and fiscal outlook here.
A huge thank you to everyone who took part in our latest Refer a Friend promotion.
We received some brilliant introductions but, as always, there could only be one name drawn at random.
Pedro Escalona Tapia from West Drayton, Middlesex
Pedro is the lucky winner of One4all Gift Cards worth £500 and to say he’s pleased is an understatement. He told us he’s “over the moon” and we cannot blame him!
His winning referral? Victor Brito Gutierrez, who recently joined Cogent after Pedro recommended our services. A perfect example of how a simple introduction can pay off in a big way for everyone.
Pedro has always enjoyed working with computers, reading (mainly history and technical books) and listening to classical music. He also really enjoys travelling, especially to the warmth of the Mediterranean. He ranks Spain, Italy and Greece as some of his favourite places to visit.
Asked what he’s planning to do with his £500 One4all gift card, he’s currently deciding on whether to put some of the money towards a trip to one of his favourite destinations or upgrade his computer systems.
That’s the beauty of the One4all gift card. Pedro has the choice of what he wants to do with the funds and when to do it!!
Pedro knows his referral Victor as they’ve previously worked together and he’s always known him to be professional, reliable and technically strong. That’s why he felt confident recommending him to Cogent.
Of course, the good news does not stop there. As part of our referral scheme, Pedro will also receive £100 for introducing Victor and Victor gets £100 too, just for coming on board.
Thank you again to everyone who sent referrals our way. We really appreciate you spreading the word about Cogent.
Although the competition is over, if you know someone who could benefit from our advice and support, you can still receive £100 for each new referral.
Refer a friend to Cogent today
If you would like to know more about our services or how the referral scheme works, just get in touch.
Contracting can be hugely rewarding as many of you know, but finding your next role can sometimes feel uncertain, especially when projects end unexpectedly or the market feels crowded.
The good news is that contractors across all industries are still in demand. The challenge is knowing where to focus your effort and how to stand out.
Here are some practical ways contractors in any field can improve their chances of securing temporary work.
Do not rely on just one route
Many contractors default to the same recruiter or job board they have always used and while familiarity can help, relying on a single channel can limit your options.
A stronger approach is to keep several routes open at once:
If one route slows down, the others keep momentum going, but it is important that you continue to market your skills and create a pipeline of new opportunities.
Stay visible to the right people
Temporary roles are often filled quickly, sometimes before they are widely advertised, so being front of mind with the right people can make all the difference.
That might mean:
A short conversation or message at the right time can open doors far faster than sending dozens of applications.
Focus on outcomes, not just experience
When applying for contract roles, what you have delivered matters more than how long you have been doing it.
Instead of listing every task you have ever carried out, focus on:
This helps potential clients quickly understand how you can add value to their organisation from day one.
Keep your professional profile sharp
Your CV and online presence act as your shop window. They do not need to be flashy, but they should be clear, current and easy to understand.
Make sure:
Don’t keep using the same old CV from years ago, over and over again. Each CV you submit should be adapted to the role, just like a covering letter.
Prepare for practical conversations
Interviews for temporary roles are often less about formal questions and more about fit.
Clients want to know:
Showing that you understand their pressures and priorities can be just as important as technical expertise.
A flexible mindset helps
Temporary work often rewards adaptability. Being open to slightly different sectors, project lengths or scopes can uncover opportunities you might otherwise miss.
Try not to pigeon-hole yourself and think about how your skills and knowledge can be applied to different fields.
Sometimes a shorter contract or a slightly different role can lead to longer-term work through strong delivery and relationships.
No single solution
Finding temporary work as a contractor is rarely about one perfect application. It is about visibility, relationships, clarity and confidence.
By staying connected, focusing on outcomes and keeping your approach flexible, you put yourself in a strong position to secure your next role, whatever your field.
If you would like guidance on managing your contracting finances or planning between assignments, the Cogent team is always here to help.
If you hold, trade or earn cryptocurrency, an important change has already taken effect. Since the start of this year, HMRC now receives far more information about crypto activity than ever before and that has real implications for contractors.
These changes are not about banning crypto or discouraging investment. Instead, they bring digital assets firmly into the mainstream tax system.
Cryptocurrency exchanges and wallet providers are now required to automatically report user information and transaction data to HMRC.
This means HMRC no longer needs to rely solely on what individuals choose to disclose. Instead, it can cross-check tax returns against data provided directly by crypto platforms.
In simple terms, crypto is now treated much more like shares, property or other financial assets when it comes to tax visibility.
The reporting rules apply to crypto-asset service providers that deal with UK residents. This includes platforms based in the UK and overseas providers that offer services to UK users.
If you are a contractor using exchanges or online wallets to buy, sell, swap or receive crypto, your activity is likely to fall within scope.
What information is shared with HMRC?
Crypto platforms are now required to collect and report a range of personal and transactional details, including:
This data is passed directly to HMRC, allowing it to compare reported crypto activity with Self Assessment returns.
Why HMRC is focusing on crypto now
HMRC has always been clear that crypto is not tax-free. Capital Gains Tax can arise when crypto is sold or exchanged and Income Tax may apply where crypto is earned through activities such as staking, mining or payment for services.
Historically, enforcement has been difficult. Crypto’s decentralised nature and inconsistent reporting by platforms made it harder for HMRC to see the full picture.
The new reporting framework closes that gap. It gives HMRC far greater visibility and reduces the risk of accidental or deliberate under-reporting.
You should now assume HMRC can now see your exchange-based activity, which makes accurate record-keeping more important than ever.
Transaction histories, acquisition costs, disposals and income streams all need to be properly tracked and reported.
This is particularly relevant for contractors who:
Crypto tax can be more complex than it looks
Crypto taxation is rarely as simple as total sales minus total purchases. Different rules can apply depending on whether an asset is treated as capital or income, how pools are calculated and how specific transactions are structured.
For contractors juggling contract work alongside crypto investments, professional support can be helpful.
An adviser who understands both tax rules and how crypto platforms actually work can help ensure:
The new rules do not require individuals to give HMRC access to private keys or wallet passwords.
However, there are still legal responsibilities. Providing inaccurate personal information to a platform or failing to declare taxable gains or income can result in penalties, interest and further HMRC scrutiny.
Deliberate concealment carries much more serious consequences.
How you can prepare
Crypto may still feel innovative and fast-moving, but from a tax perspective it is now firmly part of the established system.
For contractors, the sensible approach is not to panic, but to prepare. Keep good records, understand where tax may arise and seek advice where transactions become complex.
As HMRC’s visibility increases, clarity and accuracy are the best ways to stay compliant and confident.
***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 31 January 2026.
If you would like Cogent to prepare your tax return, please complete and return the Self-Assessment Tax Return Questionnaire for the tax year 2024/25 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.
Outstanding Balancing Payments for 2024/25 and the First Payment on Account for 2025/26 are also due and payable by 31 January 2026 and interest will be charged on late payment.
You can request a questionnaire for 2024/25 by emailing tax@cogentaccountants.co.uk
The standard charge, including VAT, for a basic tax return, is £250 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:
***PLEASE IGNORE THIS REMINDER IF YOU HAVE ALREADY SENT US YOUR QUESTIONNAIRE**
As the UK looks ahead to the 2026/2027 tax year, many businesses and contractors are reassessing how contract labour is engaged.
While the IR35 rules themselves are not changing, new compliance measures coming into force for umbrella companies in April 2026 could reshape behaviour across the contractor market in a way that favours well-structured outside IR35 arrangements.
The changes centre on new Joint and Several Liability rules introduced by the Government as part of its wider crackdown on non-compliance within umbrella company supply chains.
The intention is to ensure the correct Pay-As-You-Earn (PAYE) and National Insurance Contributions (NICs) are paid to HMRC.
The impact, however, could be far more far-reaching for contractors looking to work outside of IR35.
Why umbrella risk may drive change
From 6 April 2026, unpaid or incorrectly calculated PAYE and NIC relating to umbrella workers can be transferred up the supply chain.
Liability will first fall to recruitment agencies and, if necessary, to end clients. Crucially, there is no statutory defence.
Even where thorough due diligence has been carried out, businesses may still be exposed.
For many organisations, this introduces a level of financial and reputational risk that will be difficult to ignore.
As a result, many businesses are already reviewing their relationships with umbrella companies to see if there is a better way to acquire the talent they require.
This review should result in genuine outside IR35 engagements coming back into vogue as businesses attempt to derisk their operations.
When contracts are correctly structured and genuinely sit outside IR35 and work is delivered via a Personal Service Company (PSC), the umbrella model and consequent risk is removed altogether.
We expect more businesses to explore Statement of Work arrangements, project-based delivery and clearly defined work packages.
These models not only align with outside IR35 principles but also offer greater clarity around outcomes, costs and accountability.
What this means for contractors and businesses
Rather than reducing contractor use, many organisations are likely to become more selective and more deliberate in how they engage.
This creates an opportunity for contractors who operate compliantly and for businesses willing to structure engagements properly.
At Cogent, we see this as a positive shift. With the right advice and planning, contracts outside of the IR35 rules may become a more attractive and sustainable option for both contractors and the clients who engage them.
The key will be getting the structure right from the outset and understanding where risk truly sits.