Category: FAQ
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Can I be self employed and have a second job?
In the UK, it is perfectly legal to have a regular job (where you are an employee on a payroll) and be self-employed at the same time. Many people do this to earn extra money, test a business idea, or turn a hobby into cash. Here is what you need to know to do it…
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The End of Working From Home Relief
According to the latest Budget update from 26 November 2025, the government is completely withdrawing the tax deduction for homeworking expenses. From the start of the 2026 tax year, you will no longer be able to claim tax relief (WFH relief) for home costs that your employer does not reimburse—including the popular £6 per week…
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Change to Side Hustles UK tax in 2029?
If you are an employee who also makes money from a “side hustle” (like selling on eBay, Vinted, or freelancing), a major change is buried in the government’s latest financial plans. Starting in 2029, HMRC plans to stop giving you a choice on how you pay your side-hustle tax. Instead of paying a lump sum…
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Capital vs revenue expenses uk guide for self employed
The Short Answer: What is the difference? The “Cash Basis” Update (Important for 2024/25) Before you read further, check if you use “Cash Basis” accounting. 1. Revenue Expenses (Day-to-Day Costs) These are the ongoing costs of keeping your business alive. You can deduct the full cost of these from your turnover to lower your taxable…
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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.…