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Self Employment

HMRC Targets Side Hustle Income

HMRC has launched a fresh summer campaign reminding people with “side hustles” that extra income may need to be reported for tax purposes. The announcement specifically highlights people earning income from wedding services, online selling, content creation, freelancing and similar activities. The key figure remains the £1,000 trading allowance. If total income from side activities […]

Read more September 24th, 2026

HMRC Contacts Self-Employed About National Insurance Gaps

HMRC is writing to some self-employed individuals whose National Insurance (NI) records may contain gaps that could affect their State Pension. If you receive a letter, don’t ignore it. In some cases, you may be able to boost your State Pension by making voluntary NI contributions for missing years going back as far as 2015-16. […]

Read more September 10th, 2026

Changes To Sole Trader And Partnership Tax Year Basis

The method of taxing the profits of unincorporated businesses changed significantly in 2023/24 and will also change from 2024/25 onwards. This was originally intended to align with the introduction of Making Tax Digital for Income Tax Self-Assessment (MTDITSA), which will now start to be phased in from 2026/27. Under the old basis of taxing profits, […]

Read more April 10th, 2024

Do You Have A Side Income?

If you do then you are probably aware of the requirement to disclose this on your Self-Assessment tax return. It is important to record any side income accurately and HMRC is going to be able to see exactly how much income you receive when using a digital platform from 1 January 2024. HMRC have new […]

Read more October 23rd, 2023

2022/23 P11d Forms To Be Submitted Online

The deadline for filing the P11d forms to report benefits in kind in respect of directors and employees for 2022/23 is 6 July 2023. Note, however, that the original and amended reports must now be made online and paper returns will be rejected. Forms P11D and P11D(b) returns must be submitted online through one of […]

Read more May 4th, 2023

MTD For Income Tax Delayed, But New Basis Goes Ahead

Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) was originally scheduled to start in 2018 and was then put back to 2023 and then 2024. It was announced just before Christmas that the new system of submitting digital information quarterly to HMRC has been delayed yet again! The start date will now depend upon […]

Read more February 3rd, 2023

Sharp Increase In HMRC Fines To Landlords And Freelancers

The number of fines issued by HMRC to freelancers and landlords spiked last year in a supposed attempt to close a £32bn tax gap. According to The Telegraph, HMRC civil servants were put under pressure to bring in as much money as possible, resulting in 90,000 penalties being issued in the 2021/22 tax year – […]

Read more November 14th, 2022

NIC Rate Change Goes Ahead

The legislation to abolish the 1.25 percentage point increase in the rate of National Insurance Contributions (NICs) paid by workers, employers and the self-employed was already in progress when the U-turns were being made. The reduction, therefore, continues to go ahead and the rate of NICs on salary payments made on or after 6 November […]

Read more November 3rd, 2022

Self-Employed Need To Plan For Big Tax Bills In 2023/24

The changes to the basis of assessment of self-employed profits are scheduled to change from 6 April 2024. The new rules mean that profits (and losses) will be assessed based on the amounts arising between 6 April and 5 April instead of the profit/loss of an accounting period ending in the tax year. This means […]

Read more September 7th, 2022

Inflation Is Creating More Entrepreneurs

A need for additional income is motivating people to start their own businesses. As UK inflation hits a 40-year high of over 9%, more and more people are starting their own businesses. New technology such as online payment systems, digital marketing tools and free online resources are helping to remove the traditional barriers in setting […]

Read more August 17th, 2022

Penalties For Overclaiming SEISS Grants

HMRC are reminding sole traders and partners who have received Self-Employed Income Support Scheme (SEISS) grants that there are potential penalties of up to 100% of amounts overclaimed in certain circumstances. HMRC may apply the penalty where they believe that the trader knew that they were not entitled to the grant and did not tell […]

Read more July 4th, 2022

National Insurance Contributions Update

Despite lobbying to delay the upcoming 1.25% increase in National Insurance Contributions (NICs) payable by employees, employers and the self-employed, the government has decided to go ahead as planned from April 2022, to provide additional funds for health and social care. Some new measures have however been announced in an attempt to combat the effect […]

Read more April 14th, 2022

2022/23 National Insurance Bands

Unless the Chancellor makes an announcement to the contrary on 23 March, which is very unlikely, the rates of National Insurance Contributions for workers and employers increase by 1.25% from 6 April 2022. This is to provide extra funding for health and social care and will become a separate Levy from 2023/24 The starting thresholds […]

Read more March 8th, 2022

National Insurance Thresholds Changing

The 1.25% increase in the rate of National Insurance Contributions (NICs) paid by workers and employers announced on 7 September to provide extra funds for Health and Social care will go ahead from 6 April 2022. This will become a new Health and Social Care Levy from 2023/24 onwards. Although the income tax personal allowance […]

Read more November 2nd, 2021

MTD For Income Tax Postponed To 2024/25

Having listened to stakeholder feedback from businesses and the accounting profession, the government have announced that they will introduce Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) a year later than planned, in the tax year beginning in April 2024. This will give the self-employed and buy to let landlords an extra year to […]

Read more October 13th, 2021