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UK Financial Updates for Agencies & Contractors: Key Budget Changes, Wage Increases, and New Opportunities in Health and Infrastructure

Welcome to our latest blog update! Here at The Sterling Group, we are committed to keeping you informed about the recent changes in the UK financial landscape that may affect our agencies and contractors. Let’s dive right into the key highlights.

A Fresh Perspective on Health Services

The Government has outlined an impressive £22.6 billion increase in day-to-day health budgets for the NHS and a further £1 billion boost to the capital budget over the next year. If you’re in construction or the health sector, the £1 billion health capital investment to address the backlog of NHS repairs and upgrades presents significant opportunities.

A Boost for Workers

The government has announced a 6.7% increase in the national living wage to £12.21 per hour. There will also be a phased increase in the national minimum wage for 18-20-year-olds to £10 per hour. For agencies and contractors, this change will need to be factored into payroll calculations.

Changes to National Insurance

To repair the public finances and help raise the revenue required to increase funding for public services, the government is taking the difficult decision to increase the rate of employer NICs by 1.2 percentage points to 15%. The per-employee threshold at which employers start to pay National Insurance will be reduced from £9,100 per year to £5,000 per year. These changes will apply from 6 April 2025.

An Update on Capital Gains Tax

The lower and higher rates of Capital Gains Tax are set to increase, from 10% to 18% and 20% to 24% respectively. Contractors should be aware of these changes, as they may impact financial planning strategies going forward.

Infrastructure Projects on the Horizon

Noteworthy for the construction sector is the allocation of funds towards transport projects, including TransPennine upgrades, east-west rail, and road network improvements. The HS2 project represents a significant investment and opportunity for businesses in the sector.

In conclusion, these changes present both challenges and opportunities for our agencies and contractors. The Sterling Group will continue to help navigate these changes and provide necessary support to ensure your business thrives in the evolving landscape.

Full details on the Budget can be found here

Stay tuned for our next blog post!

Discover the Benefits of Setting Up a Limited Company 

In today’s evolving business landscape, more freelancers and contractors are considering the leap to establish a limited company. With  changes in regulations, setting up a limited company has become increasingly appealing. The Sterling Group not only offers the expertise but also provides a comprehensive service to guide you through this transition seamlessly. In this blog post, we will explore the advantages and considerations of setting up a limited company, especially in relation to IR35, and how Sterling can support your entrepreneurial ambitions.

The Sterling Group’s Expertise in Limited Company Formation

Understanding the complexities of setting up a limited company can be daunting, especially for those transitioning from sole trader status. The Sterling Group stands out by offering the opportunity to set up your own limited company with their expert guidance. Their bespoke services are designed to cater to the unique needs of each contractor, providing peace of mind and ensuring compliance with relevant regulations.

For freelancers and contractors, partnering with Sterling means accessing unparalleled market knowledge and guidance that simplifies the process. This partnership allows contractors to focus on their core business activities while Sterling provides advice  on  the financial intricacies of running a limited company. The Sterling Group’s team of professionals brings a wealth of experience in the contracting industry, making them well-equipped to manage the accountancy requirements of your business effectively.

Pros and Cons of Setting Up a Limited Company as a Sole Trader

Transitioning from a sole trader to a limited company comes with its own set of advantages and challenges. One of the primary benefits is the limited liability protection offered to business owners. This means that personal assets are protected in case of business debts or liabilities, providing a safety net for entrepreneurs.

Furthermore, setting up a limited company can enhance your professional image, potentially attracting more clients and opportunities. It also opens doors to various tax efficiencies, allowing contractors to retain a higher portion of their earnings. However, it’s important to note that running a limited company involves increased administrative responsibilities and regulatory compliance requirements.

On the flip side, the transition may require additional paperwork and costs associated with incorporation and ongoing compliance. It’s crucial for contractors to weigh these pros and cons and seek expert advice to make an informed decision. Sterling offers invaluable support throughout this process, ensuring that you fully understand the implications and benefits of establishing a limited company.

Why Setting Up a Limited Company Matters in Reference to IR35

The IR35 legislation aims to tackle tax avoidance by identifying workers who are essentially employees but operating as self-employed individuals for tax purposes. Falling inside IR35 can have significant financial implications for contractors, as it affects how your income is taxed. Setting up a limited company and ensuring all contracts worked on are outside IR35 provides an opportunity to avoid these complications and maintain more control over your finances.

By working on assignments that operate  outside IR35, contractors can benefit from legitimate tax planning opportunities, ensuring that they retain a greater portion of their earnings. This strategic approach not only optimises tax efficiency but also offers greater flexibility in managing your business affairs. The Sterling Group’s expertise in navigating IR35 regulations ensures that you remain compliant while maximising your financial advantages.

The Cost of Setting Up a Limited Company with Sterling

When considering the cost of setting up a limited company, it’s important to evaluate both the initial and ongoing expenses. Sterling offers competitive pricing, making the process accessible and financially viable for contractors. Their one-off incorporation services start at just £75 +VAT, covering essential registrations such as PAYE, corporation tax, and VAT.

Additionally, Sterling’s monthly fee of £150 +VAT encompasses a range of services designed to streamline your business operations. From dedicated accountant support to the completion of statutory accounts and tax returns, Sterling provides comprehensive assistance that ensures your business remains compliant and efficient. Their use of FreeAgent cloud-based accounting software further enhances financial management, providing real-time updates and insights.

Benefits of Establishing a Limited Company with Sterling

Choosing Sterling to establish your limited company comes with a host of benefits aimed at simplifying your business operations and maximising your financial outcomes. One of the standout advantages is the bespoke service offering, which allows you to outsource time-consuming accountancy tasks. This delegation frees up your time, enabling you to focus on other aspects of your business, such as growth and client engagement.

With Sterling’s contracting expertise, you receive exceptional value for money. Their competitive monthly fee covers a comprehensive suite of services that cater to your specific needs. The ability to have real-time financial updates empowers contractors to make informed decisions promptly, enhancing overall business agility.

Furthermore, Sterling’s professional service is often the most tax-efficient way for contractors to operate, allowing them to maximise their earnings  This financial efficiency, coupled with unlimited support and access to exclusive rewards, positions Sterling as a reliable partner in your entrepreneurial journey.

Navigating the Transition to a Limited Company with Confidence

Transitioning to a limited company is a significant step for freelancers and contractors looking to elevate their business operations. The process involves a range of legal, financial, and administrative considerations that require careful planning and execution. Partnering with an experienced provider like Sterling ensures that you have the necessary support to navigate this transition smoothly and confidently.

Sterling’s dedicated accountants work closely with you to address any concerns and provide tailored advice that aligns with your business goals. This collaborative approach fosters a sense of partnership, allowing you to focus on achieving your objectives while leaving the technicalities to the experts.

Leveraging Expert Guidance for Long-Term Success

Establishing a limited company is not just about short-term gains; it’s about laying the foundation for long-term success. With Sterling’s continuous support and expert guidance, contractors can focus on growing their businesses and exploring new opportunities. The comprehensive suite of services provided by Sterling covers all aspects of business management, from compliance to financial planning.

By leveraging expert insights and strategies, contractors can develop a sustainable business model that adapts to changing market conditions and regulatory requirements. Sterling’s commitment to your success is evident in their proactive approach to addressing challenges and identifying growth opportunities.

Conclusion

In summary, setting up a limited company  offers freelancers and contractors numerous advantages, from enhanced tax efficiency to increased professional credibility. The Sterling Group’s expertise in limited company formation provides the necessary support to ensure a seamless transition and ongoing success.

By choosing Sterling, you gain a trusted partner dedicated to helping you achieve your business goals. Their comprehensive services and competitive pricing make the process accessible and financially rewarding. Whether you’re just starting your entrepreneurial journey or looking to expand your existing business, Sterling is here to guide you every step of the way.

Explore the benefits of establishing a limited company with Sterling and take control of your financial future. For more information and to get started on your business transformation, contact Sterling today.

Call the Sterling offices on:

Customer liaison:
01925 626 200

Contractor joining team:
01925 626 286

Agency account management:
01925 626 285

Email: info@thesterlinggroup.co.uk

You can find out more about IR35 right here

What is the FCSA and why do we work so hard to remain a member?

 

At The Sterling Group, compliance isn’t just a requirement—it’s a commitment to excellence that defines who we are and what we stand for. We take our adherence to industry standards seriously, which is why we are proud members of the Freelancer & Contractor Services Association (FCSA). 

But what exactly is the FCSA, and why do we go the extra mile to maintain our membership? Let’s delve into the significance of FCSA compliance and why it’s essential for umbrella and CIS companies like ours.

Understanding the FCSA:

The FCSA stands as a beacon of trust and reliability in the ever-evolving landscape of contingent workforce management. As a self-regulatory body, the FCSA sets stringent standards for umbrella companies, contractor accountants, and payroll providers within the UK. Its primary aim? To uphold compliance, ethical conduct, and best practices across the industry.

Why FCSA Membership Matters:

1. Quality Assurance:

Being an FCSA member is akin to holding a seal of quality assurance. It signifies that we adhere to the highest standards of professionalism, ensuring our clients and contractors receive services that meet rigorous benchmarks.

2. Compliance Confidence:

Compliance isn’t just a legal obligation; it’s a cornerstone of trust in our industry. By aligning with FCSA standards, we demonstrate our commitment to compliance with tax, employment, and regulatory requirements, offering peace of mind to all stakeholders.

3. Transparency and Accountability:

Transparency fosters trust. As an FCSA member, we embrace transparency in our operations, providing clear and comprehensive information to our clients and contractors. Moreover, our membership holds us accountable, driving us to maintain the highest ethical standards in all aspects of our business.

4. Access to Expertise:

FCSA membership grants us access to a wealth of industry expertise and resources. From updates on legislative changes to best practice guidance, we stay ahead of the curve, ensuring that our services remain compliant and relevant in an ever-evolving regulatory landscape.

5. Advocacy and Representation:

As part of the FCSA community, we contribute to shaping industry standards and advocating for the interests of contractors, freelancers, and service providers. Through our collective voice, we strive to foster a fair and equitable environment for all stakeholders.

Our Commitment to FCSA Compliance:

At The Sterling Group, FCSA compliance isn’t just a checkbox—it’s a cornerstone of our ethos. We understand the importance of maintaining the highest standards of professionalism, ethics, and compliance in everything we do. From rigorous due diligence in our vetting processes to ongoing training and development for our team, we spare no effort in upholding the principles of the FCSA.

 

FCSA membership isn’t just a badge we wear—it’s a testament to our unwavering dedication to excellence and integrity. By remaining committed to FCSA compliance, we ensure that our clients and contractors receive the exceptional service they deserve while contributing to the continued advancement of our industry. 

For more information on how The Sterling Group can help you, get in touch with us today.

Customer liaison:
01925 626 200

Contractor joining team:
01925 626 286

Agency account management:
01925 626 285

Email: info@thesterlinggroup.co.uk

Maximise Efficiency: Why The Sterling App is a Must for Contractors

In the bustling world of small business and self-employment, every minute and every penny counts. Streamlining your administrative tasks is not just a convenience; it’s a critical strategy for thriving in a competitive market. So, Maximise Efficiency  with The Sterling App. This is where the app stands out as a beacon of efficiency and fiscal prudence for contractors and freelancers. Developed with the user’s ease in mind, The Sterling App offers a repertoire of features designed to unburden the modern contractor, enabling them to focus on what truly matters – their craft and their clientele.

Contractors and small business owners are not merely adopting the app; they are avidly advocating it for its seamless integration into their financial management strategies and unmatched user experience. In this comprehensive exploration, we dissect the deep-seated benefits of The Sterling App, discuss why it outshines its competitors, and offer testimonials to underline its sterling reputation.

The Sterling App: What Sets It Apart

The quintessential question for any potential user is ‘why The Sterling App?’. The answer lies in the app’s intrinsic value, with features like live payment tracking, real-time expense submissions, and a user interface built for anyone, no matter their technological proficiency.

Key Features and Benefits

Imagine having your  payslips and PAYE at the tip of your fingers. The Sterling App ensures finances are within your sight at all times, giving you a proactive grip on your economic navigation. Its intuitive design transcends the limitations usually faced by complex financial software, making budgeting, and planning accessible to all.

User-Friendly Interface and Customisation

In an era of personalised experiences, The Sterling App does not disappoint. Unlike rigid financial tools, it allows users  Cross-device synchronisation to ensure you’re always working with the latest data, whether it’s on your phone or on Sterling’s portal accessed via  your desktop.

Real-Life Use Cases

To add a human touch to the app’s efficiency, consider the triumphs of those who have embraced it. From multi site  construction contractors submitting  expenses to graphic designers streamlining their client invoicing, The Sterling App has catalysed operational makeovers with tangible results.

Success Stories and Testimonials

Behind every successful feature is a satisfied user. Stories of The Sterling App reducing hours spent on financial paperwork or ensuring no expense claim goes unaddressed are not rare. Testimonials echo a unified sentiment of empowerment and liberation from financial worry, enabling users to focus on their professional goals with renewed vigour.

Why The Sterling App Works for Small Business Owners

For small business owners, financial management can be a dual-edged sword, either propelling you forward with foresight or bogging you down with intricate details. The Sterling App is the salve for the latter, offering solutions that are cost-effective and time-saving.

Time-Saving Features

Automation is the buzzword that translates to actionable time savings. The Sterling App’s integrated approach automates mundane tasks, from viewing time sheets and payments to submitting expense claims or holiday pay requests ensuring a contractors  time is reclaimed for more strategic pursuits.

How Freelancers and Self-Employed Contractors Can Benefit

For the legion of freelancers and self-employed professionals, The Sterling App is not just a tool; it’s a companion in their entrepreneurial voyages. The app allows contractors to access their account from any where at any time of the day.

Efficient Financial Management

It presents a centralised platform for financial activities, making invoice generation, payment tracking, and expense management as simple as a few taps on your smart device. The app’s power lies in this simplification, ensuring that even the most disinterested technophobes are invigorated by the ease with which they can manage their financial affairs.

Personalised Services

One size fits none in the domain of freelancing. The Sterling App acknowledges this, providing customisable services tailored to individual needs. Whether you’re a part-time contractor  or a full-fledged consultant, the app adapts to you, not the other way around.

The Impact on Your Business

The final chapter in The Sterling App’s success story is the quantifiable impact it has on businesses. Whether an uptick in invoice turnover, the optimisation of financial workflow, a significant reduction in costs, The Sterling App is a bottom-line booster through and through.

Financial Management Par Excellence

Contractors  utilising The Sterling App are adopting a modern standard in financial management, one that ensures accuracy, timeliness and compliance without fail. The ripple effect through the company’s operational efficiency is palpable, leading to enhanced client relations and a buoyed professional reputation.

Conclusion

The Sterling App is a lighthouse in the sea of financial management tools – a bright beacon guiding contractors and small business owners alike towards operational clarity and financial ease. Freelancers  are discovering , its utility is universal. If you’re ready to experience the liberation that comes with financial efficiency, it’s time to embrace The Sterling App. Try it for yourself; the testimonials you’ve heard only scratch the surface of what The Sterling App can bring to your professional life.

Navigate to the app store of your choice, download the app, and join the myriad of satisfied users who now call The Sterling App their financial ally.

Your contracting career or small business endeavours deserve the competitive edge that The Sterling App provides. It’s not just a recommendation; it’s an essential tool for the progressive professional.

We’re here and ready to help you get started, speak to our team today.

Our friendly staff are on hand to guide you through the registration process, answer any questions you may have and solve any queries.

Call us on 01925 626200

Or email us at: info@thesterlinggroup.co.uk

For more information on the benefits provided in the app visit Circular Benefits

Are you a contractor looking for a reliable and compliant company to work with? Look no further than The Sterling Group. With almost 25 years of experience in the industry, we offer a range of services that cater to your specific requirements and circumstances.

Our contracting options include Umbrella, Limited, PAYE, and Self Employed, offering flexibility and choice for contractors. With each service, we provide numerous benefits that add value and make contracting with us a pleasurable experience.

Let’s explore why The Sterling Group might be the right choice for you:

Reduced Payment Terms – As opposed to contracting directly with a client, we may offer quicker payment terms. You will also have access to further contracting opportunities through the recruitment agencies that we work with. This means that you can gain more work and income while working with us.

Reduced Administration time – We take care of invoicing, reducing the burden on contractors. Our verification department will assist with taxation status if you are a CIS contractor, and we provide an annual statement of contract income to help with self-assessment tax returns.

You’re insured – We offer public liability cover, personal accident cover, and employer’s liability cover. 

For information on our partnership with Lime Health Insurance you can visit their website here.

Access to Health & Safety Advice – Our team is available for contractors to offer access to health & safety advice.

App Updates – As a contractor, you have access to our Sterling app, where you can check your payslip, book holidays and even look through your entire payment history so that you can see everything right in the palm of your hand.

Access to further opportunities – Contractors will have access to further contracting opportunities through the recruitment agencies that Sterling work with.

For specific details on benefits for our Umbrella, PAYE & CIS Service clients visit our website.

Our dedication to compliance means that when you choose to work with us, you can rest assured that all tax and national insurance contributions are taken care of on your behalf, leaving you with more time to focus on the work. 

 We hold numerous accreditations, including APSco, ROSPA Member, and FCSA Accredited Member. These accreditations prove our dedication to providing a compliant and reliable service to all contractors we work with. Compliance is at the forefront of what we do. We follow strict HMRC guidelines and procedures, reacting promptly to any changes in legislation.

If you are a contractor looking for a company that puts your needs first, The Sterling Group is an excellent choice. With our compliance-driven approach, dedication to customer service, and numerous benefits, we are confident that we can provide a valuable service to all contractors we work with. 

Contact us today and join the thousands of contractors who have already benefited from working with The Sterling Group. Email info@thesterlinggroup.co.uk or call 01925 626 286 to get started or visit our website today.