Under Making Tax Digital (MTD) for Income Tax, you must keep digital records of expenses that are incurred wholly and exclusively for your business. This can include office costs, business travel, professional fees, insurance, advertising, software, equipment and other day-to-day business expenses. Not every payment needs to be recorded as a business expense. Personal spending…
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For the 2026/27 tax year, the main UK Corporation Tax rate remains at 25%, while companies with profits of up to £50,000 generally pay the 19% Small Profits Rate. For profits between £50,000 and £250,000, Marginal Relief may apply. This means the effective tax rate increases gradually rather than jumping directly from 19% to 25%.…
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The way businesses are checked in the UK is changing. The Economic Crime and Corporate Transparency Act gives Companies House greater powers and introduces new requirements for company directors and owners. One of the key changes is identity verification. Company directors and People with Significant Control (PSCs) are required to verify their identity. Existing companies…
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Missing a tax deadline is more than an inconvenience. HMRC can charge penalties and interest, so businesses need to know both when a return is due and when the tax payment must be made. Key deadlines include: Exact dates can vary depending on your accounting period, VAT scheme, payroll schedule and individual circumstances. The best…
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UTR and National Insurance Number are often confused, especially by people who are new to working or running a business in the UK. Both are connected to the tax system, but they serve different purposes. A UTR (Unique Taxpayer Reference) is a unique 10-digit number used by HMRC to identify a taxpayer. It is commonly…
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Making Tax Digital for Income Tax became mandatory from 6 April 2026 for sole traders and landlords with qualifying income above £50,000. Those affected by MTD must keep digital records of their income and expenses and send quarterly updates to HMRC using compatible software. The first quarterly update for the 2026/27 tax year was due…
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Starting your self-employed journey in the UK comes with several important responsibilities. One of the first steps is registering with HMRC to receive your Unique Taxpayer Reference, which is required for filing your Self Assessment tax return and managing your tax affairs. From the first day of trading, it is important to keep accurate records…
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One of the biggest misconceptions about Making Tax Digital is that quarterly updates mean you’ll have to pay Income Tax every three months. In fact, quarterly submissions are for reporting your income and expenses to HMRC – they are not tax payments. The purpose of these updates is to give HMRC a clearer picture of…
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From April 2026, many self-employed individuals and landlords are required to submit quarterly updates to HMRC under Making Tax Digital for Income Tax. Missing your first submission does not mean the requirement disappears, and it is important to act as soon as possible. HMRC operates a points-based penalty system for late submissions. Each missed quarterly…
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Many people believe that once they stop working as self-employed, they no longer need to file a Self Assessment tax return. However, if HMRC still expects a return from you, simply not submitting it can result in automatic penalties. Closing your business or becoming employed does not automatically cancel your Self Assessment obligations. You should…
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