Being self-employed can be daunting, especially when it comes to accurate and regular record keeping of income and expenses, and calculating subsequent tax liabilities. There is a wealth of information regarding HMRC requirements, but with frequent changes to legislation and requirements, it can be hard to navigate.
Making Tax Digital
Making Tax Digital will affect sole traders, freelancers, contractors, and landlords who derive a rental income from properties.
Those affected by it, will need to ensure that they are obeying the rules on income tax, by April 2026.
A full digital record of income and expenses should be recorded on MTD compatible software. This will generate reports, which will be sent on a quarterly basis, directly to HMRC.
At the end of the accounting period, you will need to finalise and confirm the accuracy of reports sent, before submission. This process will replace the previous self-assessment tax return.
Accountancy Services
It is always recommended that those with a self-employed income, should seek assistance from a dedicated accountant. This ensures that records are kept up to date, submissions are made in a timely fashion, and changes in process need not become your issue.
Specialist Worcester accountants, such as randall-payne.co.uk/services/accountancy/worcester-accountants/ are happy to help sole traders, landlords, or businesses of all sizes.
From accountancy to audit and business consultancy, enlisting an accountant can free you up to concentrate on running your business successfully.