Category: FAQ
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Do I have to file dormant accounts with HMRC?
Technically you don’t have to file dormant accounts with HMRC. You file “Dormant Accounts” with Companies House, not HMRC. However, there is a catch. You must formally tell HMRC that your company is dormant (inactive). If you don’t tell them, their computer assumes you are still trading. It will demand a full Company Tax Return…
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How Much Is the HMRC Late Filing Penalty
The immediate answer is £100. If you file your tax return even one day late, HMRC automatically charges you a £100 fixed penalty. The Full Cost: It Gets Worse if You Wait That £100 is just the starting point. If you ignore the deadline, the fines escalate rapidly based on a strict timeline. Here is…
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What is a failure to notify
In simple terms, Failure to Notify is when you start earning money on your own (self-employment) but do not tell HMRC about it by the deadline. If you started your business in the last tax year and didn’t register for Self Assessment by 5 October of the current year, you have committed a “Failure to…
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Student Loan Plan 5 – What You Need to Know Before April 2026
Plan 5 is the new repayment scheme for students who start an undergraduate or Advanced Learner Loan course on or after 1 August 2023. Here is a simple breakdown of how this plan works. 1. When Do Repayments Start? The good news is you won’t have to start paying back your loan until April 2026…
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Student Loan thresholds 2026/27 (UK)
If you have a student loan, the amount you need to earn before you start making repayments is changing for the 2026/27 tax year (which starts in April 2026). These changes affect the annual earnings threshold—the salary you must exceed before your employer starts taking repayments from your wages. The exact figure depends on which…
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What is MTD ITSA software
MTD ITSA software is a specific type of accounting or bookkeeping tool approved by HMRC that allows self-employed people and landlords in the UK to keep digital records and send tax updates to HMRC every three months. What is MTD ITSA? MTD stands for Making Tax Digital, and ITSA stands for Income Tax Self Assessment.…
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How self employed pay tax (UK guide)
Self-employed people in the UK pay tax by completing a Self Assessment tax return each year and paying Income Tax and National Insurance on their profits. Understanding how it works When you work for yourself, you’re responsible for calculating your own tax. HMRC won’t do it automatically.You need to register as self-employed, keep records of…
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Does my accountant need access to my bank account?
No, your accountant should never need your personal bank login details, PIN, or password. You should never share these with anyone. Giving out this information is a major security risk, could lead to fraud, and likely breaks the terms and conditions of your bank account. While they don’t need access to log in, they do…
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Is it hard to get a mortgage as self employed?
No, it isn’t necessarily harder to get a mortgage as self-employed, but the process is different and requires more paperwork. Lenders just want to be sure you have a steady and reliable income to afford the monthly payments. Instead of showing payslips from an employer, you have to prove your income in other ways. 🏠…
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How to Avoid 40% Tax Self Employed
To avoid 40% tax self employed (known as the Higher Rate), you must legally reduce your taxable profits to below £50,271. The two most effective ways to do this are by claiming all your allowable business expenses and by making pension contributions. This article explains how this works in simple terms. (Note: These figures are…