Category: Self-Employed Tax
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Do I need to do MTD if I earn under 50k?
If your total income from self-employment and property is under £50,000, you do not need to switch to Making Tax Digital (MTD) in April 2026. You can continue using the normal Self Assessment tax return for now. However, the rules are changing in phases. If you earn more than £30,000, you will need to join…
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How do I get my tax year overview?
If you are self-employed and applying for a mortgage, your lender will need proof of your earnings. One of the most important documents they will ask for is the Tax Year Overview. Here is exactly how to find and print it from your HMRC online account: Step-by-Step Instructions Important Timing Note: If you have only…
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How to authorize someone to deal with HMRC for you
To authorize someone, you must choose the method based on who acts for you: Option 1: Authorizing a Paid Accountant (Tax Agent) A paid professional (like an accountant) acts as your “Tax Agent.” Once authorized, they can handle almost everything for you. They do not need you to be on the phone or sitting next…
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Where can I find guidance on Making Tax Digital for income tax?
The most up-to-date and official rules are found on the GOV.UK website. You should look for the collection titled: “Making Tax Digital for Income Tax” Specifically, search for the page “Find out if and when you need to use Making Tax Digital for Income Tax.” This is the definitive source from HMRC that is updated…
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How to register as self employed for the first time?
To register as self-employed, you must tell HMRC by registering for Self Assessment. The quickest way is online: Step-by-Step Instructions 1. Check if you actually need to register You generally need to register if you earned more than £1,000 from self-employment between 6 April and 5 April the following year. This £1,000 is your “trading…
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What happens if you don’t pay your tax by 31st January
If you miss the 31st January deadline, HMRC will start charging you interest immediately (from 1st February) on any unpaid tax. Do not ignore it. If you cannot pay, contact HMRC immediately to set up a “Time to Pay” plan. This stops the penalty fees, though interest will still build up. Missed the 31st January…
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Why am i paying 30% tax self employed
If 30% is being deducted from your wages, it is because you are not “verified” with HMRC. This usually means you haven’t registered for the Construction Industry Scheme (CIS). Because you aren’t in the system, the taxman forces your contractor to take a higher rate of tax as a precaution. Here is exactly how it…
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How Much Self Employed Tax Will I Pay
The most accurate way to answer this right now is to use the HMRC Tax Calculator. Do not guess or try to do the math yourself. HMRC provides a free, official tool that tells you exactly what you need to set aside based on your specific earnings. How to Find the Calculator The calculator is…
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Accountant vs Bookkeeper: Which Service Does Your Business Actually Need?
The Short Answer The main difference is timeframe and focus. Which do you need first? Most small businesses need a bookkeeper first. You need someone to track money coming in and out accurately from day one. You generally bring in an accountant closer to year-end to file your taxes, or quarterly if you need high-level…
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Accountant Fees in the UK: What Should a Small Business Expect to Pay?
To give an immediate benchmark: for a standard UK small business or sole trader, professional accounting fees typically range from £60 to over £300 per month. For a sole trader with low volume, you can expect to pay around £60 per month. As a business grows into a limited company or becomes VAT-registered, fees usually…