Tax is changing! But not for everyone. Here’s a quick reminder of what’s changing this year and for whom. 2026-27 (tax year starting 6th April 2026) Making Tax Digital (MTD) only starts on 6th April 2026 if the total self-employed and rental income (before expenses) shown on your 2024-25 tax return was over £50,000. If…
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There’s no easy way to answer that. The landscape is constantly changing and new products are coming to market all the time. But here are a few things to consider: 1. Are you looking for free or paid-for software? Although HMRC aren’t providing any free software, they have been encouraging software developers to provide MTD…
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It all depends on where you’re starting from, and whether you use more than one software package to handle your business record-keeping. If your business is straightforward, Making Tax Digital should be too. The main changes will be to make sure the way you keep your bookkeeping records in a way that complies with Making…
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Despite the advantages of using software, what if you’re happy using spreadsheets for your bookkeeping and don’t want to change? In this blog, I explore a free bridging software solution that enables you to keep using spreadsheets and still comply with Making Tax Digital. Making Tax Digital and spreadsheets If your combined income from self-employment…
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The short answer is – yes, you can – but here are some factors to consider: Which tax system are you in? If you’re in Self Assessment, spreadsheets are absolutely fine. You can keep your records in a spreadsheet and manually transfer the totals onto your tax return once a year. If HMRC have moved…
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I disagree. If you run your own business, it should be your choice who does your bookkeeping. Doing it yourself might be the right decision for you, it might not be. If the thought of doing your own bookkeeping appeals to you, here are some questions you can ask yourself. Bookkeeping can be time-consuming. Even…
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Self-employed individuals and landlords who showed a gross income of over £50,000 on their 2024-25 tax return – that’s before deducting expenses – must comply with the new Making Tax Digital for Income Tax rules from 6 April 2026. If this applies to you, you should have received a letter telling you that you’ll need…
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A brief history of Self Assessment Self Assessment was first introduced in 1995-96. At that point, the tax system changed from working on a “preceding year basis of assessment” to a current year basis, which reduced the delay between a sole trader earning the profits and finding out how much tax was due. Under the…
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Introduction Making Tax Digital (MTD) is a new way for sole traders and landlords to report their income and expenses to HMRC. Anyone who had business turnover and/or rental income of £50,000 or more in the 2024-25 tax year, before allowing for any expenses, will need to use MTD from 6th April 2026. MTD will…
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Introduction Making Tax Digital for Income Tax (MTD) has been on the cards for a while. In 2015, when HM Revenue & Customs (HMRC) first proposed it, it was due to be introduced in April 2018. Successive delays, not helped by Covid and Brexit, pushed the implementation date back to April 2026. Making Tax Digital…
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