hello there fellow adults
I've received a letter from HMRC about "Making Tax Digital for Income Tax"
am I misreading it or will it be a colossal pain in the ass for self-employed people, specifically ones who do lots of small pieces of work and usually do their taxes themselves
I've received a letter from HMRC about "Making Tax Digital for Income Tax"
am I misreading it or will it be a colossal pain in the ass for self-employed people, specifically ones who do lots of small pieces of work and usually do their taxes themselves
Comments
We'll have to be much more organized. π¬
Get an accountant, not a book keeper. Look for the letters CTA.
Been doing my self assessments on the portal for the last 7 years.
Search for free accounting software (HMRC approved) - I believe many banks offer it for free, and it can tie in with your online banking app/account.
The right sort of software will make this a hell of a lot easier
She's out at a car boot or I'd ask her
I think Iβd be better off retiring
I have to nag my husband for months to do his return. If he has to do it 5 times a year then I will just be permanently nagging him.
There's no requirement to pay tax or NIC any more frequently than freelancers do now under self-assessment
It might seem to be overkill for non-corporate self employed use.
Even if you donβt really need the extra account that would be well worth it.
https://www.theregister.com/AMP/2025/05/01/hmrc_making_tax_digital/
You'll need to do four quarterly returns during the year purely for your self-employment and any property income (not for investment income or PAYE), but these can be just totals of income, expenditure and profit. They're not intended to be deadly accurate to the penny
https://www.tax.org.uk/technical/making-tax-digital-for-income-tax-self-assessment
And the taxman says "holy shit - you live like this???"
Too Small Fry To Qualify! Too Small Fry To Qualify!
Doin what I love but at this stage
I'd make much more on minimum wage
Too Small Fry To Qualify! Too Small Fry To Qualify!
You Luddite π
used to tell people that submitting your taxes as a sole trader was one of life's unexpectedly straightforward bits of admin, but obviously they couldn't let that stand, no good things allowed, ever
aaahhhhhhhh
AAAAAHHHHHHH
https://bsky.app/profile/cognomist.bsky.social/post/3lovhvv22uk2e
Govt. benefits for this:
1) prevent fraud (how? if you were writing lies on paper, not you'll type them in instead)
A terrible tory policy. No idea why Labour are carrying on with it. Millions already down the pan at HMRC putting this in place.
1. Talk to a friend with an accountancy background
2. Make sure you consider support when choosing a software package
3. Think about getting a bookkeeper/accountancy technician to help 3/
Whilst I instinctively favour the former, it's horses for courses.
There are more suitable packages for sole traders.
https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free