Please note that due to impending holiday commitments, our offices will be closed on the following days over the next few weeks:
We will be open for business as usual on all other dates.
We thank you in advance for your understanding.
***PLEASE IGNORE THIS REMINDER IF YOU HAVE ALREADY SENT US YOUR QUESTIONNAIRE***
If you would like Cogent / CMEASY to prepare and file your 2021/22 tax return and you have not yet sent us your completed Self-Assessment Tax Return Questionnaire, you will need to do so by 30 September 2022 to benefit fully 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 30 September 2022 will receive the full discount on a basic tax return, charged at £85.
If your questionnaire is received between 1 October and 31 December 2022, the fee will be discounted to £120; any returns received after 31 December 2022 will be charged at the full rate of £240.
Please note, 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 2023.
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.
If you worked via Cogent for the period 06/04/21- 05/04/22, you can request a questionnaire for 2021/22 by emailing tax@cogentaccountants.co.uk
If you worked via CMEASY for the period 06/04/21 – 05/04/22, you can download a questionnaire for 2021/22 by logging into your secure portal at www.cmeasyauth.co.uk using your username and password and clicking ‘Documents’ and ‘Personal Taxes’. If you cannot remember your password, please use the ‘Forgot Password’ button on the login page. If you experience any further difficulty logging into your secure portal, please email tax@cmeasy.co.uk
Due to postal delays arising from industrial action, please return your completed questionnaire together with any attachments by email only to our Tax Department – tax@cogentaccountants.co.uk – if you are a Cogent client for the period or tax@cmeasy.co.uk if you were a CMEASY client for the period.
You are required to file a tax return if:
***PLEASE IGNORE THIS REMINDER IF YOU HAVE ALREADY SENT US YOUR QUESTIONNAIRE**
Liz Truss has been appointed as the new Leader of the Conservative Party and has, as a result, taken on the role of UK Prime Minister.
During her campaign for Party Leader, Truss made more than 149 pledges, including a promise to review IR35 and support sole traders and small businesses.
Now in power, many in the freelancing and contracting community are hoping that she, and her new Chancellor Kwasi Kwarteng, live up to the pledges that were made.
Alongside these specific pledges for the contracting community, Truss and her new Government are expected to make greater tax cuts, including abolishing a planned rise in Corporate Tax and reversing increases to National Insurance contributions introduced earlier this year.
So far, leaders of national associations, including the Federation of Small Businesses (FSB) and the Confederation of British Industry (CBI) have congratulated Truss on her victory but asked her to take immediate action to support businesses across the UK during the current economic crisis.
Martin McTague, National Chair of the FSB, said: “Small businesses are crying out for a comprehensive response which cuts taxes, limits spiralling bills, and provides direct cash support for the smallest businesses.” The FSB wants the new Government to take “bold” action.
The Director-General of the CBI, Tony Danker, has also requested that the Prime Minister deliver economic support for households, workers and businesses.
Finally, Andy Chamberlain of IPSE, speaking to Bdaily, said “IPSE looks forward to working with the new Prime Minister and her cabinet”, in particular their review of IR35, employment status and the Managed Service Company legislation.
He added: “These rules are destroying businesses and holding back the economy – and they need to change now.”
Urgent action
So far events have complicated the enactment of any new legislation, not least the sad passing of Her Majesty Queen Elizabeth II.
However, new energy support measures have been announced. A new Energy Price Guarantee will ensure that “a typical household in Great Britain pays an average £2,500 a year on their energy bill, for the next two years, from 1 October 2022”.
The Government has said this new measure will cap ‘per unit costs’ meaning that savings will remain linked to each consumer’s usage. However, a typical household will save at least £1,000 a year based on current prices from October.
A new six-month scheme for businesses and other non-domestic energy users will also be introduced. After this period ends, the Government will provide ongoing focused support for vulnerable industries.
Further details of this support and the Government’s other tax cuts and promises are expected in an imminent financial statement on Friday 23 September 2022.
The UK is experiencing a critical skills shortage as unemployment falls to the lowest level since 1974.
New data from Office for National Statistics (ONS) shows that the rate of unemployment in the UK fell to just 3.6 per cent in the three months to July 2022.
As a result, many employers are struggling to find candidates for critical roles in their businesses, particularly in highly skilled or specialist areas.
So, what is the solution?
According to a new study, more than three-quarters of employers are turning to contractors to fill the gaps in their workforce, as part of a new approach to doing business.
Why does this matter to you as a contractor?
Knowing why employers want to utilise the services of contractors and freelancers empowers you to make a better case during the hiring process, so you can secure a contract – and in some cases, increase your rate.
Here are the top five reasons why employers favour the services of contractors:
Less risk – Hiring the wrong person can be a costly mistake in several ways. The longer the person remains ‘in post’, the more these issues are compounded and inevitably when they leave or are removed from their position, businesses need to reinvest time and other resources into hiring someone new.
A bad permanent hire can drive down productivity, hurt morale, and even drive away work and other key employees.
In comparison, the relationship between contractors and engagers is more flexible. If a business hires the wrong contractor, it may be easier and cheaper to terminate a contract and find someone more suited to the role.
Increasingly, even where contractors are performing well, businesses like the flexibility that freelancers offer, as they can scale back on their workforce quickly if their economic position worsens.
Speed – Contractors can be taken on faster than permanent hires and it typically costs less to onboard them. It is amazing how much resources and time go into a permanent hire. Add on to this the need to embed them within the work culture and train them, and it is clear to see the headaches that employers face.
Whilst there is a degree of onboarding required for contingent workers, more often than not experienced contractors can come in from day one and fulfil a role thanks to their existing skills and experience.
Broadening talent – Finding and recruiting the best talent can be a challenge and, in this talent-scarce market, many of the most skilled individuals are increasingly recognising the professional, financial and lifestyle benefits of contracting.
To broaden their pool of talent, many employers have no other options than to seek out the support and services of freelancers.
Thankfully, the move to remote working means that the geographic barriers that may once have stood in the way of finding the ideal candidate no longer exist within many roles – bringing new flexibility and accessibility to the job marketplace.
A change of approach – Given the challenges and benefits outlined above, many businesses are already changing their organisational design to incorporate contractors so that they are more agile.
By adopting a greater contingent workforce, businesses are finding that they can adapt better to change, and HR can flex their teams for a business’s dynamic needs.
In fact, according to the report, more than one in three businesses using contingent workers say they do so to improve their agility (36 per cent).
Filling a gap – Sometimes the reason for hiring a contractor, even for a short period, is more practical. As the great talent search continues, employers are using contractors and freelancers to fill temporary gaps in their workforce until they can make permanent hires.
Similarly, with more people taking career breaks and time off for maternity, paternity or adoption leave, a short-term contractor is a great solution to quickly fill a role, without the complexity and cost of a permanent or semi-permanent hire.
Even if a business has a short-term requirement, such as specialist skills to complete a one-off project, then hiring a contractor may make more sense than creating a full-time, permanent role.
That is why 75 per cent of corporate finance leaders questioned said they see contractors as an important part of their company’s recruitment strategy.
Armed with this useful information, you should now have an even stronger position to go out there and win new, more lucrative work – don’t sell yourself short.
How well do you market yourself on LinkedIn? Can potential clients identify your skills, strengths and experience?
In our last few newswires, we have looked at how contractors can use social media platforms, like LinkedIn, to find new work for themselves.
Now we take a look at the improvements you can make to your profile and activities you can undertake to get noticed and secure new work.
Introduce yourself
One of the most important parts of your profile is your summary and ‘about’ section. These are the first things that appear below your name when it appears in searches.
The summary should do exactly what it suggests, sum up your areas of expertise. When searching through a list of candidates, this is the first thing potential recruiters see and it can sway a decision – first impressions count.
Below the summary is the ‘about’ section, where you can talk at more length about your skillsets, interests, passions and experience.
Try to keep this concise and engaging, focusing on your core skills and expertise. Don’t be afraid to get a little creative, as it will help you stand out from the crowd.
Update your skills and experience
It is amazing how many LinkedIn profiles are out of date or simply do not contain any real information about a person’s skills, experience, education or expertise.
Although adding new skills or job experience may seem inconsequential, for those seeking out contractors and consultants, it can give them a clearer picture of who you are.
LinkedIn has a highly advanced search algorithm, which allows recruiters and the engagers of contractors to look for the most minute details.
This covers everything from skills to accreditations, membership of networks and even a person’s interests.
That is why it is important to check your current skills listing and add to it if there are gaps. It might be that you have gained new skills or perhaps there were some skills that you missed during the creation of your profile.
Seek recommendations and endorsements
LinkedIn allows you to accept endorsements of your skills and recommendations from your connections.
If you are coming to the end of a contract, why not reach out to your main points of contact within the business and ask them to give you an endorsement or recommendation on LinkedIn.
These can boost your position within the search algorithms and are also a great way to promote your expertise to those landing on your profile page.
Join networks and groups
You can join a wide number of groups and networks on LinkedIn. These are small forums where people can share posts and information. They can be a useful resource for finding work.
However, being part of a network or group also allows recruiters and engagers to find you more easily, as they can search by network or group to find people with similar skillsets or interests.
This can be a great way to get yourself on to a shortlist of candidates, where businesses are using LinkedIn to find potential contractors.
Be active
The personal accounts that achieve more on LinkedIn are the most active ones. If you are creating content and sharing and liking other people’s content, you are going to build connections quickly and be seen by more people.
Try and set yourself a target of liking or sharing five posts a week and try to create at least one new post a month. You may be wondering what you can post about…
With LinkedIn, there is a wide range of things to consider posting about from topical news in your industry to personal achievements or even interesting anecdotes from your career.
By creating engaging content and being more active, businesses will find you more easily and you can quickly expand your connections.
We hope you have found our recent series on LinkedIn helpful. It is a great tool for securing new work and with a few simple steps, as outlined in this and our previous articles, you can achieve much more with the platform.
It is that time of year again when many of us look to jet off to sunnier climates or head to the seaside to enjoy some much-needed rest.
Of course, unlike workers who are regularly employed and paid via PAYE, the decision to take a holiday can create challenges for contractors, as it may mean a period without pay that needs to be factored into your plans.
To help, here are some hints and tips to help alleviate the stress and strain of having time off:
Communicate clearly with clients
If you plan to take time off during a contract, this should be clearly communicated with your client and arranged well in advance, where possible.
This is even more essential if you plan to start a new contract and already have a holiday booked. Many freelancers are advised not to book off holiday within the first month of a new contract or have time off until the new contract is in place.
Having open and honest conversations with the business you are supporting can help them to plan around your absence and ensure they either have your role covered or plan their wider workflow around you.
However, be aware that a formal request for holiday, rather than a general statement on when you intend to be off, could in some circumstances misconstrue your relationship with your engager and create the impression of employment. This could have implications for IR35.
To further prevent any confusion regarding your IR35 status, you can elect to send a substitute in your place to provide similar services while you are absent, thereby clarifying that you are providing a service and not employment.
Try to be flexible
As you are working through your own limited company, you can take odd days off during the contract – it is one of the benefits of being a contractor. However, this must not adversely affect your work or the delivery of that contract.
Speak with the business you are working with, understand their pressure points and try to work around their plans.
Be mindful that it is very unlikely you will be allowed to have more than two weeks off at a time. If you anticipate needing extended time off, try to time this so it happens between contracts, but consider that it could take a few weeks once you return to secure a new contract.
Build up a surplus
If you plan to have time off during a contract, you will need to consider how you support yourself financially during that time as well.
It might be that you can incorporate this through a higher overall fee for the contract, but it might also be that you build a surplus within your limited company to ensure you receive payments even when you are not working.
Relax
Perhaps one of the most important things that you can do is relax. It is really important to have time off from work to recharge your batteries and spend time with friends and loved ones.
Your productivity and passion for work can really suffer if you don’t take the time to wind down once in a while.
Remember, you are not limited to a specific number of days in a year for holiday as you are not paid for time off.
You can take as many days off as you desire with the client’s agreement.
From everyone at Cogent, we hope you have a wonderful, restful summer break.
According to a new study, 39 per cent of Brits have considered taking up freelancing, suggesting a renaissance in this form of work following a significant fall in freelance workers since 2019.
Despite the impact of IR35 and the uncertainty created by the pandemic and subsequent economic downturn, the freelance labour market is worth an estimated £303 billion to the UK economy.
It is not surprising given this success that a third of employees feel that they could make more money as a contractor, consultant or freelancer.
While improved pay was a motivator for many surveyed, many other key factors highlighted the attractiveness of freelancing, including:
While many commentators worried that numbers of self-employed workers might continue to fall post-pandemic, today’s research clearly shows that freelancing is back!
Brits are still keen to pursue freelancing, with a significant number thinking about swapping their full-time job for the dynamism, freedom and creativity of self-employment.
Despite the many positives of freelancing, study showed there were also many challenges with the sector, particularly the fundamental problems created by IR35 reforms.
Alongside this, 22 per cent of respondents identified the complexity of the tax system as a reason that they would not consider freelancing, while a quarter cited the loss of sick pay and holiday pay as deterrents.
With the hot weather we have recently enjoyed, many of us may have been tempted to take a dip in the sea, but it was almost the end for one meerkat in Cornwall after he plunged 30ft off the side of a boat.
Boris had only recently arrived in Penzance aboard the Gry Maritha when he made a bid for freedom when he broke out of his cage with his travelling companion Doris.
The pair had been making a trip from the Isles of Scilly to Axe Valley Zoo in Axminster, Devon when the escape attempt took place.
Thankfully the ship’s skipper Tom Sexton acted quickly, stripping down to his boxers and plunging into the sea to rescue the furry getaway.
Speaking with the Metro, Tom said: “I think the owner originally had four of them in a sort of little petting zoo at his council house.
‘Two of them were in this cat carrier style box but managed to figure out how to break out while we were sailing.
‘The two of them were just running around the deck, but there were all kinds of cars and crates they kept hiding under, so we decided to leave it until we got into port.
“Eventually after mooring, we all got out brooms and gloves and the five of us started running around the deck trying to catch them.
“We managed to get the first one, but the second one jumped overboard. I was actually pretty impressed at how good a swimmer he was, but he seemed to be in a bit of trouble.
“I decided I’d jump in and grab him so I stripped off down to my boxers and put on some gloves to go get him, I knew they could be quite nippy.
“I was surprised how easy it was to get him though. We then put him back in his box and hoisted him back onto the deck.”
It’s hard to deny the incredible power of social media. It has the power to change nations and sway public opinion one way or another.
However, it has also become a vital tool in recruitment and securing contractors new work. When it comes to platforms that do this effectively, LinkedIn is king.
Estimates suggest that there are up to 15+ million jobs advertised on LinkedIn at the moment worldwide, but there may be many more ‘casual’ opportunities out there.
Although there are many potential contracts available offline, contractors cannot afford to miss out on the opportunities that LinkedIn can offer.
In our last newswire, we covered the basics of how to improve your presence on this platform, so by now, you should be ready to go.
Here are just some of the ways you can use LinkedIn to find and win new work:
LinkedIn has a particularly good Open To Work feature that highlights to recruiters and others that you are available for new opportunities. This also adds a handy little graphic to your profile photo, so you stand out.
Turning this feature on is fairly simple and can be done by:
The direct messaging feature on LinkedIn is a fantastic way to reach out to existing contacts. Not only does it notify people immediately when you contact them, but it allows you to personalise your message as well.
This is an excellent way to reach out to old contacts, but can also be used to target potential engagers, particularly if you have seen roles advertised elsewhere.
By choosing to be Open to Work, you will also find that many recruiters and agencies will reach out to you to offer contract opportunities.
We have seen a growing trend for LinkedIn job fairs, where businesses hold digital events where they outline the roles available and the skills they need.
These can be a terrific way to not only win new work but also build your network of potential clients for the future.
These come and go, so keep your eye out for them when visiting your feed. In some cases, these may even be directly advertised to you based on the existing skills you list and your profile information.
Although we are seeing a slow return to in-person networking events, LinkedIn has become more active when it comes to people making connections.
You should take the time to explore your existing contacts on the site, to see whether you can expand your network of connections online.
By building a bigger pool of connections, you should find that more contract and job adverts hit your feed over time, and it will help people to become aware of who you are and what you can offer.
In the final part of our LinkedIn series, we will look at marketing your skills on LinkedIn.
When the IR35 rules were first introduced the number of blanket determinations issued by engagers was incredible.
Many businesses simply didn’t feel the need to put the effort in to make correct determinations and as a result, contractors suffered.
Now more than a year on, the chickens are coming home to roost, with many contractors stuck in blanket determinations voting with their feet and moving to roles outside of IR35.
At the moment the number of vacancies out there far outweighs the number of skilled people able to fill roles.
In fact, for the first time since records began job vacancies outweighed unemployment in May – the immense talent search is on.
The current job and contractor market has very much swayed in the favour of candidates, with many businesses and sectors calling out for skilled workers to join their ranks.
That is why contractors mustn’t sell themselves short when it comes to accepting IR35 determinations.
If you feel that you are stuck in a contract within the off-payroll rules and aren’t particularly tied to the role, then it might be worth having a look elsewhere, or at the very least speaking with the business you are engaged with to see whether they might reconsider your status.
We have seen first-hand the bargaining power that many of our clients have had when it comes to negotiation or finding contracts outside the IR35 rules.
Our message is, don’t sell yourself short – you are in demand.