Starting on 6 April 2026 self-employed earners will become liable for Making Tax Digital (MTD) for the first time. HMRC is implementing Making Tax Digital to overhaul the self-assessment tax reporting system. Phase 1 begins at the start of the next tax year on 6 April 2026. Are You Ready for the Rollout of Making Tax Digital in April 2026? The scheme requires tax to...
National Insurance Contributions (NICs) are a type of tax paid upon earnings for employees and the self-employed. NICs are the UK’s second largest tax revenue source, after Income Tax. NICs are only paid by those who earn over the tax threshold annually. What are NICs? The majority of revenue from NICs is generated by employer contributions. Followed by employee contributions. Class 2 and 4 NICs...
Your self-assessment tax return is a complete record of your tax filing for the relevant financial year. This needs to include everything relating to your personal income. Here we explain everything your accountant needs to know, to complete your self-assessment tax return accurately. What Your Accountant Needs to Know to Complete Your Self-Assessment Tax Return Here we identify what your accountant needs to be aware...
The self assessment (SA) threshold for taxpayers taxed through PAYE only, is rising to £150,000, from the 2023/24 tax year onwards. Changes to Self Assessment Tax Threshold This increase in the Self Assessment (SA) threshold was first announced in May 2023. The threshold for the 2022/23 tax year, which many taxpayers and accountants are currently preparing, remains unchanged at £100,000. Which means that people who...
The deadline for filing your Self Assessment tax return is 31 January. This means that the filing deadline for the tax year 2021-22 is 31 January 2023. If you haven’t already you will need to file your income and expenditure from self assessment with HMRC online, plus pay any tax that you owe for this period, by midnight on 31 January 2023. Self-Employed Tax Deadline...
A sole trader is the exclusive owner of a business, entitled to keep all profits after tax has been paid, but liable for all losses. A sole trader also takes on some financial responsibilities, from filing your self assessment income and tax return with HMRC, managing invoices and keeping a record of all your business related transactions. This can be easily managed by opening a...
UTR stands for Unique Taxpayer Reference. A UTR number is a ten-digit code issued by HMRC which uniquely identifies you, or your company, for tax purposes. HMRC (HM Revenue & Customs) uses this unique identity number to track your tax obligations. Your UTR number remains your unique tax identity usually throughout your life, just like your National Insurance (NI) Number. Do I Need a UTR...
UK traders living and working in Spain are liable to pay tax on income and assets there. Make sure that you don’t mistakenly become liable for taxation in both countries, by understanding tax residency in Spain. 90 Day Rule for Visitors to Spain Spain remains a popular destination for many UK traders to live and work. Brexit has made little difference for most people visiting...
The government has recently confirmed that Making Tax Digital (MTD) will apply to income tax self assessment (ITSA) from 6th April 2024. This includes all unincorporated businesses. This applies to sole traders, partnerships and landlords, who file their taxes via self assessment, and are earning over £10,000. MTD for ITSA Start Date Confirmed On 23 September parliament legislated this new start date for MTD for...
Allowable expenses are the essential costs of running your business that are tax deductible. Any outgoings that are allowable expenses can be deducted from your taxable income, allowing you to save money and reduce your tax bill. What Are Allowable Expenses? Keeping a good tax record will help you be tax efficient by deducting all of your allowable expenses before you submit your profits to...
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