Category: Self-Employed Tax
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What will accountants charge for MTD?
If you want a comprehensive service where your accountant handles the entire Making Tax Digital (MTD) process for you, expect to pay between £60 and £100 per month. The End of the Once-a-Year Tax Bill If you are self-employed in the UK, you might be used to handing over a shoebox of receipts or a…
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Can my accountant do MTD for me?
If you are self-employed in the UK, your accountant can definitely take care of Making Tax Digital (MTD) for you. You do not have to navigate the new digital tax rules or submit the new quarterly updates all by yourself. The Golden Rule: They Must Be an Authorised HMRC Agent Before your accountant can press…
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What happens if I miss an MTD deadline?
If you miss a Making Tax Digital (MTD) deadline, HMRC will give you a penalty point. Think of it like getting points on your driving licence. If you collect four points, you will be hit with a £200 fine. Every deadline you miss after that will cost you another £200. On top of this, if…
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Why does HMRC ask for payments on account?
HMRC asks for “payments on account” to stop you from falling behind on your taxes and to bring the self-employed tax system closer to the way regular employees pay tax. Instead of waiting up to 20 months to collect tax on the money you’ve earned, HMRC uses payments on account to collect your tax in…
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What is the payment on account for self assessment?
A Payment on Account is simply an advance payment towards your next tax bill. HMRC uses this system to collect tax in installments from self-employed people and other Self Assessment taxpayers, rather than asking for one massive lump sum at the end of the year. How Payments on Account Work When you fill out your…
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Self employed – when do i pay tax?
If you are self-employed in the UK, your main tax payment is due by 31 January every year. If your tax bill is over £1,000, you will also need to make a second payment by 31 July. Going self-employed is exciting, but trying to figure out HMRC’s rules can feel like a massive headache. Fortunately,…
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Do I need to register as self employed immediately?
The short answer is no, you do not need to register as self-employed immediately. You actually have plenty of time to set things up before you must officially tell HM Revenue & Customs (HMRC). When you first start working for yourself, it can feel like there is a mountain of paperwork waiting for you. The…
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Do you have to pay a student loan if self-employed?
Yes, you do have to pay back your student loan if you are self-employed in the UK. Being your own boss does not wipe out your student debt. However, you will only make payments if your business profits go above a certain amount. A Simple Guide to Paying Your Student Loan When Self-Employed Becoming self-employed…
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What is the penalty for voluntary disclosure to HMRC?
The penalty for a voluntary (unprompted) disclosure to HMRC ranges from 0% to 100% of the tax you owe. For careless mistakes, you can often get the penalty reduced to 0%. However, if the error was deliberate, the penalty will be higher—though still significantly lower than if HMRC had to catch you first. Here is…
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When can I file my 25-26 self assessment
You can file your 2025/26 tax return from 6 April 2026. The 2025/26 tax year runs from 6 April 2025 to 5 April 2026. As soon as the tax year finishes, HM Revenue and Customs (HMRC) opens their systems so you can submit your details right away. Important Deadlines to Remember While you can start…