If you were expecting to register for Making Tax Digital when you had more time, there is an important change to know about. From September 2026, HMRC has started signing up sole traders and landlords who are required to use MTD but have not registered themselves. The process is happening in stages, and HMRC will…
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Starting as self-employed in the UK comes with a few tax surprises that are easy to miss. For example, a business expense is not automatically allowable just because you paid for it while working. The rules can be more specific, particularly for costs such as working from home, travel, meals and equipment. Another common trap…
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Making Tax Digital is bringing major changes to how many self-employed people manage their tax, but there are still plenty of misconceptions about what MTD actually requires. One common myth is that MTD replaces the Self Assessment tax return — it does not. Quarterly updates provide HMRC with information throughout the year, but an End…
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Your income has fallen below the Making Tax Digital threshold. Does that mean you can immediately stop keeping digital records and sending quarterly updates? Not necessarily. HMRC looks at your qualifying income and when the change happened. If your income falls below the relevant threshold after the tax year has already started, you generally remain…
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Cash may not leave a bank statement, but it still counts as part of your business records. If a customer pays you in cash, you should record the income just as you would a bank transfer — including the date, amount and what the payment was for. The same applies to cash expenses: a receipt…
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You submitted your Self Assessment, closed your laptop — and then noticed a mistake. Maybe you entered the wrong figure, forgot an allowable expense or left out some information. The good news is that discovering an error does not automatically mean you will be fined. In most cases, you can amend your return within 12…
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Selling a few unwanted clothes on Vinted or eBay does not automatically make you a trader. If you are simply getting rid of personal possessions you no longer need, you will generally not have to pay Income Tax on those sales. The situation can change when you start buying items specifically to resell them for…
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Your business had a strong year, but your income has now dropped significantly. You check your Self Assessment and see that HMRC is still asking for Payments on Account based on your previous tax bill. Why? These payments are normally calculated from the previous year’s tax liability, with instalments usually due on 31 January and…
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Starting self-employed work halfway through the UK tax year can make your first tax return less straightforward than expected. Your tax position is based on the income and allowable expenses connected with your self-employed activity, but you may also need to take other income from the same tax year into account. So starting in September,…
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Not every letter from HMRC means you have done something wrong — but ignoring one can turn a simple tax query into a much bigger problem. Some letters may ask you to provide information, correct something on your tax record or take action by a specific date. The important detail is often hidden in the…
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