Lancaster Accountants respond to rising demand as new tax rules take effect

A Lancaster based business contractor accountancy firm are urging firms to ensure they stay on the right side of the law regarding recent changes in employment legislation and digital tax compliance.

Responding to a surge in enquiries, ICS Accounting, based at Lancaster Business Park on Caton Road, have formed a new “task force” department, specifically to support businesses and recruitment agencies comply with the fast-moving regulatory requirements.

Thanks to the evolving and increasingly flexible employment market, “Umbrella” solutions, where an intermediary Umbrella Company administers salary, taxation and statutory benefits between self-employed contractors and end client or agency, are an increasingly preferred model for companies and contractors alike.

Sadly, a minority of unscrupulous companies promoting attractive but non-compliant solutions has led to the new Joint and Several Liability legislation.

From April 6th, responsibility for unpaid tax is now shared across all parties involved in contractor employment, placing greater emphasis on due diligence, transparency and compliant payroll practices.

At the same time, businesses and the self-employed are facing the phased expansion of Making Tax Digital, the government modernisation of the UK tax system to mandatory digital record-keeping and online tax submissions.

Together, expert commentators say these developments represent the most significant shift in employment compliance in recent years.

Established in 2002, ICS Accounting’s reputation has spread from the North West right across the country.

At 2025’s national Contracting Awards, the team won Best Contractor Accountancy for the second year in a row.

In response to “unprecedented” requests from companies seeking reassurance that their processes are compliant, the firm has created a dedicated new support team specifically designed to help organisations navigate the new rules.

The new initiative pairs field-based specialists with office-based experts, enabling clients nationwide to receive both face-to-face guidance and day-to-day administrative support.

 Colin Thompson, ICS Accounting's managing director, said: “The new joint and several liability means companies must be confident that everyone in their supply chain is operating compliantly. For many organisations that’s raised important questions about processes, responsibilities and record keeping.

“While the concurrent rollout of Making Tax Digital involves fundamental reshaping of financial reporting for firms, landlords and sole traders alike.”

HMRC estimate that Making Tax Digital from April 2026 will affect around 864,000 businesses and the reforms are expected to impact more than four million employers, self-employed and landlords across the UK.

ICS say this reflects the wider importance of compliance expertise within the UK’s evolving employment economy.

Colin added: "We’re already seeing record levels of enquiries from recruitment agencies and contractors who want clarity.

“Our goal is simply to make sure everyone has the information and support they need to stay compliant and move forward with confidence.”