Category: Self-Employed Tax
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How to find a qualified tax advisor for sole traders
The most reliable way to find a qualified tax advisor as a sole trader is to search the official online directories of recognised professional bodies—such as the AAT (Association of Accounting Technicians)—and verify that the advisor is registered as an official tax agent with HMRC. This guarantees you are hiring someone with proven training who…
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Can your accountant call HMRC on your behalf?
Yes, your accountant can absolutely call HMRC on your behalf! However, they cannot do it automatically. Because your financial details are strictly confidential, you must first give HMRC official permission to speak to your accountant. This process is known as “authorising an agent.” Why Can’t They Just Call Right Away? HMRC has strict rules to…
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Can I share my Government Gateway ID?
You must never share your Government Gateway user ID and password with anyone. This includes your accountant, tax agent, business partner, or family members. Handing over your login details goes against HMRC rules and puts your personal data at serious risk. When you are self-employed in the UK, you already juggle a million different tasks.…
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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…