It is essential to keep onto top of your bookkeeping for Making Tax Digital (MTD) as if quarterly filings for Income Tax are late then penalties will accrue This is how the MTD penalty points system works Missing a deadline: Each time you submit a return late, you get one penalty point Your penalty threshold depends on how often you submit returns: Annual submissions: 2 points = £200 penalty Quarterly submissions: 4 points = £200 penalty Once you reach a threshold, you’ll pay
In today’s digital world, much of our financial and business information lives online. While this makes things convenient, it also means that access to important records can disappear quickly—especially when you close an account. Whether it’s your personal bank account or an online booking system for your business, downloading your data in advance is a simple but essential step. Don’t Lose Access to Your Financial History When you close a bank account, your access to online banking is usually removed
The short answer is: it depends. In this guide, we’ll break down when training costs are tax-deductible, when they’re not, and how you can make sure you’re claiming correctly. When Training Costs Are Tax-Allowable HMRC allows you to claim the cost of training if it is incurred “wholly and exclusively” for the purpose of your current trade. This means the training must help you: Maintain or improve skills you already use in your business Keep up with industry changes, technology,
If you’re a counsellor or psychotherapist in the UK, you may be wondering: Do I need to charge VAT on my services? The short answer is: usually, yes. Despite providing mental health support, most counsellors and psychotherapists are not VAT exempt under UK law. In this guide, we explain why—and what it means for your practice. Why Mental Health Services Are Not Automatically VAT Exempt Many people assume that all healthcare services are VAT free. However, UK VAT law applies
What is MTD for Income Tax? Making Tax Digital for Income Tax is HMRC’s plan to digitise the self-assessment process for individuals with business and/or property income. Instead of submitting a single annual tax return, taxpayers will send updates to HMRC every quarter. Who Will Be Affected and when? From 6 April 2026, MTD for ITSA will be mandatory for: Self-employed individuals Landlords With total annual business and/or property income over £50,000, based on the 2024/25 tax return From April
