The clock is ticking for filing a Self-Assessment tax return before the 31st January 2025 deadline which is fast approaching, and missing it could result in fines. Here’s everything you need to know to stay ahead. Important Dates to Remember 31 January 2025: Deadline to submit your 2023/24 Self-Assessment tax return online. Final date to pay any tax owed for 2023/24. Due date for your first payment on account for the 2024/25 tax year. What Happens If You Miss the

The introduction of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) marks a significant change in how self-employed individuals in the UK report their income to HMRC. What is MTD for ITSA? MTD for ITSA is HMRC’s initiative to modernise and digitise tax reporting for individuals earning income through self-employment, property, or other sources. From April 2026, sole traders and landlords with a combined gross income over £50,000 must use MTD-compatible software to: Keep digital records of

Tax investigations can be a daunting prospect for anyone, especially for self-employed business owners. HMRC continue to tighten its scrutiny of tax returns, understanding how investigations work and how to protect you is essential. Here’s a breakdown of what you need to know. Why Does HMRC Investigate Self-Employed Individuals? HMRC initiates tax investigations for several reasons, including: Inconsistent Returns: Unusual fluctuations in income or expenses may trigger an investigation. Late or Inaccurate Filings: Repeated errors or late submissions can raise

HMRC has published an online tool which individuals can use to check if they need to declare income from using an online marketplace or social media to: sell personal possessions, goods or services; create online content; or rent out property. Check this out as the platforms are about to start reporting details of their sellers to HMRC

Assuming you cannot claim the NI employment allowance because you are the only one employed by your company and you do not fall under IR35 Paying a salary up to the reduced Employer’s National Insurance Threshold of £5,000 is appropriate. For the 2025/26 tax year this will be £416.66 a month or £5,000 per annum and because of this change, dividends of £45,270 are paid without any higher rate tax (the basic rate band of £50,270 less salary of £5,000).