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Category: All News

Your income dropped below the MTD threshold — can you stop using MTD?

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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Paid in cash? HMRC still needs to see the paper trail

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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Found a mistake in your tax return? Don’t panic — fix it

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 on vinted? When does a clear-out become a business?

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 income fell — So why is HMRC still asking for the same tax?

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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Started Self-Employed halfway through the year? Don’t assume your tax is simple

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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The HMRC letters you should never leave unanswered

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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5 Common tax mistakes new Self-Employed people make

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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Can you reduce your tax bill before the tax year ends?

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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Missed your first MTD deadline? What you need to know

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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