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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Starting work as a self-employed person in the UK may seem straightforward, but staying on top of your tax responsibilities requires attention to detail. Common mistakes include registering with HMRC too late, claiming the wrong expenses, failing to keep accurate records and missing important tax deadlines. Another common issue is ignoring messages or requests from…
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As the UK tax year approaches its end on 5 April, it can be a good time to review your finances and check whether you are making full use of the tax reliefs and deductions available to you. Taking action before the deadline may help you avoid paying more tax than necessary. One of the…
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The first quarterly deadline under Making Tax Digital (MTD) for Income Tax was 7 August 2026. This was the first reporting deadline for taxpayers who entered the new MTD system from April 2026 and are required to send quarterly updates to HMRC. If you missed the 7 August deadline, there is no need to panic.…
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Your records should contain enough information about each transaction, including the date, amount and description of the income or expense and, where relevant, details of the customer or supplier. This helps show where the figures in your accounts come from and how your tax liability was calculated. Photos or scans of receipts can be useful…
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For self-employed individuals in the UK, having a separate business bank account is generally not a legal requirement. However, keeping business transactions separate from personal spending can make bookkeeping much easier. It allows you to track your income and expenses more clearly and makes preparing your tax return simpler. A separate account can also give…
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If your income has fallen significantly, you do not necessarily have to keep paying the same payments on account as last year. Payments on account are normally based on your previous Self Assessment tax bill. If you expect your tax bill for the current year to be lower, you can ask HMRC to reduce your…
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