Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) will apply from 6 April 2026 to sole traders and unincorporated landlords with combined trading and property income in 2024/25 of at least £50,000. Under MTD for ITSA, traders and landlords must keep digital records and make digital returns to HMRC using MTD-compatible software. A digital record is a record of income and expenses that is created and stored in software that works with MTD for ITSA. Under MTD for

In difficult trading conditions, a sole trader may realise a loss rather than a profit. Where this is the case, it is important that the trader realises that they may be able to claim tax relief for that loss. There is more than one way in which this can be done, and the best route will depend on the trader’s other income and personal circumstances. The relief must be claimed. Option 1: against other income of the same or previous tax year Where the trader has other income, s

Employees often incur expenses in doing their job and they may be able to claim these back from their employer through the expenses system. Where an employer reimburses expenses, there may be tax implications to consider. Exemption for paid and reimbursed expenses A tax exemption applies to certain paid and reimbursed expenses. It is available if the expenses which are paid or reimbursed by the employer would be fully deductible from an employee’s earnings had the employee me

It is reasonable to assume that if a person pays too much tax, HMRC will automatically send the overpayment back to them. Unfortunately, this is not the case, and where a taxpayer is due a tax refund, they may need to claim it. Why an overpayment may arise There are various reasons why a person may pay more tax than they need to. For example, where a taxpayer is in Self-Assessment and makes payments on account, if their circumstances change and their income falls, they may ha

The 2025/26 tax year comes to an end on 5 April 2026. If you are thinking of selling assets that may realise a gain and have yet to use your 2025/26 capital gains tax annual exempt amount, it may be worth making the disposal before the end of the current tax year. All individuals have an annual exempt amount for capital gains tax purposes. Net gains for the year (after the deduction of allowable losses for the tax year) are free of capital gains tax where they are sheltered b

One of the key requirements under Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is the need to keep digital records of income and expenses. A digital record is a record of income or an expense that is created and stored using software that is compatible with MTD for ITSA. There are different software options available. A landlord within MTD for ITSA can either choose a single software package that does everything or different software products that work tog

Unincorporated landlords who had combined property and trading income in 2024/25 of £50,000 or more must comply with Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) from 6 April 2026. This requires them to keep digital records and make quarterly returns and a final declaration to HMRC using MTD-compatible software. Where landlords jointly own a property, there are some points to note. Working out qualifying income A landlord is only within MTD from 6 April 20

From April 2026, many businesses may find that their business rates increase. This is as a result of the revaluation of properties for business rates purposes, and for businesses operating in the retail, hospitality and leisure (RHL) sector, the withdrawal of reliefs introduced in the Covid pandemic. Nature of business rates Business rates in England and Wales are charged on most non-domestic premises, including offices, shops, warehouses, factories, restaurants, pubs, hotels

In the not-too-distant past, incorporation was synonymous with automatic tax savings. However, successive governments have eroded these tax benefits. With additional administration and costs, many directors are considering disincorporation. As ever, there are tax implications for both the company and individual. Asset transfer Whatever the reason for disincorporation, when a company with assets closes, HMRC generally treats the company as disposing of those assets to the dire