self employed Archives - WRLO Accountants

HMRC sends side hustle warning

WRLO Accountants — Fri, 04 Jul 2025 17:57:12 +0000

HMRC is warning those earning extra income through a side hustle to check if they need to register for self assessment and file a tax return. Side hustles can be any additional income stream, from online selling to content creation, from dog walking to property rental. It also includes gains or income received from cryptoassets. Anyone who earns over the £1,000 threshold may need to register for self assessment and complete a tax return. There is a checker tool on GOV.UK for those who aren’t sure if they meet the criteria. If they do and are new to self assessment they will need to register to receive their Unique Taxpayer Reference. Guides for side hustlers can also be found at taxhelpforhustles.campaign.gov.uk. Myrtle Lloyd, HMRC’s Director General for Customer Services, said: ‘Whether you are selling handmade crafts online, creating digital content, or renting out property, understanding your tax obligations is essential. If you earn more than £1,000 from these activities, you may need to complete a self assessment tax return. ‘Filing early puts you in control – you will know exactly what you owe, can plan your payments, and avoid the stress of the January rush. You don’t need to pay immediately […]

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Almost half of sole traders unprepared for MTD changes

WRLO Accountants — Sat, 24 May 2025 12:14:35 +0000

Almost half of UK sole traders feel unprepared for upcoming Making Tax Digital (MTD) for Income Tax changes, according to research conducted by IRIS Software. The new MTD rules mandate digital record-keeping and quarterly Income Tax updates starting April 2026 and non-compliance can lead to significant penalties. The study found that almost one in three sole traders have never heard of MTD, MTD for Income Tax will require self-employed individuals, landlords and small businesses earning over £50,000 to keep digital financial records and submit quarterly updates using compatible software from April 2026. The threshold drops to £30,000 in 2027 and to £20,000 in 2028. The changes could place a significant burden on business owners, who will be required to submit at least five updates to HMRC each year. Mark Chambers, Managing Director at IRIS Accountancy, said: ‘These findings highlight an important moment of opportunity for the UK’s sole traders. With MTD just around the corner, there’s a real chance for businesses to modernise their financial processes, unlock efficiencies, and gain better visibility of their income and expenses. ‘It’s encouraging to see that nearly a quarter feel ready to meet the requirements, but that leaves a significant portion not experiencing the […]

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5.4 million yet to file their self assessment tax return

WRLO Accountants — Sun, 12 Jan 2025 20:03:55 +0000

With less than a month to go 5.4 million taxpayers still need to complete and pay their self assessment and avoid penalties, HMRC warns. Anyone required to file a tax return for the 2023/24 tax year who misses the 31 January 2025 deadline could face an initial late filing penalty of £100. Thousands of taxpayers have already done so by completing their tax returns before the fizz was barely flat on New Year’s Day. HMRC revealed that more than 24,800 people filed on 1 January. A further 38,000 had even squeezed theirs in before the bells on 31 December 2024, with 310 filing between 23:00 and 23:59 on New Year’s Eve. Myrtle Lloyd, HMRC’s Director General for Customer Services, said: ‘We know completing your tax return isn’t the most exciting item on your New Year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest. ‘The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to GOV.UK and search ‘self assessment’ to get started now.’ Internet link: HMRC website

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