HMRC’s New MTD for Income Tax Starts in April 2026: What Landlords and the Self-Employed Need to Do Now

For many landlords and self-employed people, tax has always meant one main rush each year.
That is changing.

From 6 April 2026, HMRC’s new Making Tax Digital for Income Tax (MTD ITSA) rules begin for many sole traders and landlords. If you are affected, you will no longer be able to just leave everything until the end of the tax year. Instead, you will need to keep digital records and send quarterly updates to HMRC using compatible software.

This is a major shift, and many people are still underestimating how much work, organisation and accuracy it will really require. That is exactly why now is the right time to get proper help.

What Is HMRC’s New MTD for Income Tax From April 2026?
From 6 April 2026, many landlords and self-employed people with qualifying income over £50,000 must keep digital records and send quarterly updates to HMRC using compatible software.

HMRC’s test is based on your qualifying income, which means your gross income from self-employment and property before expenses, not your profit. If your combined qualifying income is above £50,000 for the 2024/25 tax year, you may need to join MTD for Income Tax from 6 April 2026.

This is not just a software change. It is a new reporting habit, a new compliance system and, for many people, a new source of pressure unless it is set up properly from the beginning.

Who Will Be Affected First?
From 6 April 2026, MTD for Income Tax applies to sole traders and landlords whose total qualifying income from self-employment and property is over £50,000 based on the 2024/25 tax year. From 6 April 2027, the threshold drops to over £30,000 based on the 2025/26 tax year, and HMRC has also said that those with qualifying income over £20,000 will be brought in from 6 April 2028.

This means:

• a landlord with gross rents over £50,000 may be in
• a self-employed person with sales over £50,000 may be in
• someone with both rental income and self-employed income may be in even if neither one alone is over £50,000, because HMRC looks at the combined total

One of the biggest misunderstandings is this: 

HMRC is looking at gross income, not profit.

So if you earn £28,000 gross from self-employment and £24,000 gross from property, your combined qualifying income is £52,000, which means you are likely in scope from April 2026.

What Will You Actually Have To Do?
If you are caught by the new rules, you or your agent will need to use MTD-compatible software to:

• create and keep digital records
• record self-employment and property income and expenses
• send quarterly updates to HMRC
• complete the year-end process through software, including the final tax position

The key dates HMRC has published for those joining from April 2026 include:

• 6 April 2026 – start keeping digital records under MTD
• 7 August 2026 – first quarterly update due
• 7 November 2026 – second quarterly update due
• 7 February 2027 – third quarterly update due
• 7 May 2027 – fourth quarterly update due
• 31 Jan 2028 – first MTD ITSA end-of-year tax return for the 2026/27 tax year due

Importantly, the 2025/26 tax year is still filed in the usual Self Assessment way by 31 January 2027, because that tax year ends before MTD begins. And MTD ITSA does not record other types of income such as savings interest, dividends, CGT, overseas, wages etc.

Why This Feels Much Bigger Than “Just Software”
A lot of articles online make MTD sound like a basic software upgrade.
It is not.

For many landlords and self-employed people, this will mean changing from a once-a-year tax mindset to an every-quarter compliance routine. That means more deadlines, more record keeping, more chances to get behind, and more pressure if the books are not tidy from the start. HMRC’s guidance makes clear that you must use compatible software, keep digital records and submit quarterly updates before you can complete the end-of-year process.

Why Cheap Software Alone Is Not the Answer
HMRC does not provide its own MTD software for Income Tax. Instead, taxpayers must choose from compatible third-party software. HMRC says there are free and paid options, but software being “compatible” does not mean it will choose the right treatment for you, keep you fully organised, or make the best tax decisions on your behalf.

This is where many people will get caught out.
Software can help you enter figures.
It does not replace judgement or tax knowledge and experience - which saves you tax.

It does not tell you:

• whether an expense is safe to claim
• whether something should be capital or revenue
• whether your rental records are complete
• whether your drawings, personal use, repairs or improvements are being treated correctly
• whether your quarterly data is sensible before it goes to HMRC

Cheap software may look attractive at the start, but if the bookkeeping is poor or the tax treatment is wrong, it can cost far more later in stress, overpaid tax, missed claims, corrections and HMRC problems.

Why Using Tax Affinity Is the Smarter Option
The best approach for most landlords and self-employed people is not to struggle through this alone and hope for the best.
It is to get the system set up properly from the start.

At Tax Affinity Accountants, we do not just tell clients to buy software and get on with it. We help make the whole process practical, compliant and manageable.

That means we can help you:

• work out whether MTD applies to you
• check the correct threshold based on your income
• set up the right process and software approach
• keep records properly from the beginning
• review the figures before they go to HMRC
• help make sure your tax position is calculated as accurately and tax-efficiently as possible based on your records and circumstances
• reduce the risk of mistakes, missed claims and bad habits becoming expensive problems later

For many people, that is the real value.
Not “having software”.
Having the right accountant behind the software.

A Simple Step-by-Step Plan

Step 1: Check if you are in scope
Look at your 2024/25 gross income from self-employment and property. If the combined figure is over £50,000, you should be preparing now for April 2026.

Step 2: Do not wait for panic season
If you leave this until the last minute, you are far more likely to choose the wrong process, keep poor records and end up stressed by the first quarterly deadline.

Step 3: Get your bookkeeping method sorted
You need a clean digital method that works in real life, not just in theory. HMRC says you need compatible software, but choosing software is only one part of getting ready.

Step 4: Let a specialist review your position
This is especially important if you have:

• both rental and self-employed income
• joint property income
• more than one property
• irregular income
• poor historic bookkeeping
• uncertainty over what to claim

Step 5: Let Tax Affinity handle it properly
The safest route is to let an experienced accountant set the system up, review the records and manage the compliance process with you.

What About Penalties?
HMRC has announced an easement for those who are mandated into MTD from April 2026: it will not apply penalty points for late quarterly updates for the first 12 months. But that does not mean quarterly updates can be ignored. HMRC still requires them, and they must be submitted before the year-end process can be completed. Penalties can still apply for late tax returns and late payment.

So the message is simple:
Do not confuse “temporary softening of penalties” with “this is not important.”

It is important.

Very.

Does This Apply To Limited Companies?
No. HMRC’s current MTD for Income Tax rollout from April 2026 is for sole traders and landlords in scope, not limited companies. Partnerships are expected to be brought in later, but they are not part of the April 2026 start.

Final Thought: This Is Not the Time to Wing It
This change is coming.
HMRC has confirmed that it is going ahead from 6 April 2026, and it has already said that hundreds of thousands of sole traders and landlords will be affected.
For some people, MTD will be manageable.
For others, it will become a cycle of missed deadlines, messy records and frustration.
The difference will often come down to one decision:

Do you try to patch it together yourself with cheap software, or do you get it set up and reviewed properly from the start?

At Tax Affinity Accountants, we help landlords and self-employed clients make this transition in a way that is clear, controlled and tax-efficient.

Speak to Tax Affinity Before April 2026
If you are a landlord or self-employed and think the new MTD rules may apply to you, now is the right time to act.

We can help you:

• confirm whether you are affected
• prepare your records
• put the right process in place
• avoid confusion and unnecessary stress
• make sure your figures are handled properly rather than left to cheap software or guesswork

Contact Tax Affinity Accountants today and let us help you get ready properly.

About the Author
Written by Anni Khan, Tax Affinity Accountants
Reviewed by Andrew Khan, Principal Accountant, Tax & Forensic Accounting Specialist, Recognised tax agent authorised to act on clients’ behalf with HMRC.

Tax Affinity Accountants are UK-based tax and accountancy specialists supporting individuals and SME businesses. With offices in Worcester Park, Kingston upon Thames, and Epsom & Ewell, they act for clients across the UK and internationally, providing compliant, HMRC-focused tax advice and support. For more information, visit www.taxaffinity.com or read more insights at www.taxaffinity.com/blog.

Important Notice
This article is for general information purposes only and does not constitute personalised tax advice. Tax treatment depends on individual circumstances. Professional advice should be sought before taking action.

#MTD #ITSA, #MakingTaxDigital, #HMRC, #Landlords, #SelfEmployed, #SoleTraders, #IncomeTax, #QuarterlyUpdates, #April2026, #TaxAffinity, #PropertyTax, #SelfAssessment #accountant 

🚨 HMRC Loses £47m to Fraud: VAT Fraud Risks Are Increasing

HMRC recently disclosed a massive £47 million loss to organised phishing attacks targeting PAYE accounts. However, VAT fraud remains an even bigger concern, with criminals exploiting VAT484 to alter bank details and intercept legitimate VAT repayments.

If your business is VAT-registered, this rising threat could land you in hot water — from frozen repayments to fines and reputational damage.


🧩 Common VAT Fraud Schemes

• Bank detail theft via VAT484 – Fraudsters submit false forms to change repayment info so tax refunds go to their accounts.
  
  
• Carousel fraud – Criminals swap goods across borders without paying VAT, pocketing refunds.
  
  
• HMRC impersonation (phishing) – Fake HMRC emails/texts trick businesses into revealing sensitive data.
  
  

Victims often don’t discover the issues until refunds vanish — and HMRC doesn’t bail out victims of fraud.


✅ Protect Your Business – What You Can Do

1. RiskProtectionVAT484 form abuse:
Regularly verify bank details directly in your HMRC account

2. Suspect refund requests:
Reject any request that doesn’t align with your expected VAT return

3. Scam emails:
Train staff to recognise phishing and use email filtering

4. System security:
Add multi-factor authentication (MFA) to all HMRC systems and financial tools

🛡 How Tax Affinity Accountants Can Defend You

At Tax Affinity Accountants, we offer robust protection for your VAT compliance and fraud defence:

• VAT process reviews – We audit and confirm that your VAT filings and refunds are accurate.
  
  
• Account monitoring – Regular checks of your Government Gateway account to spot suspicious VAT484 changes.
  
  
• Scam resistance training – Educate your team to identify phishing and fraudulent communications.
  
  
• Professional support – If HMRC freezes your account or flags abnormal activity, we walk you through resolution and recovery.
  
  

📞 Don’t Face HMRC Alone – Get Expert Support

With VAT fraud on the rise, tackling HMRC disputes or criminal investigations is complex. You can’t afford mistakes — especially when penalties can wipe out your finances.

Partner with Tax Affinity Accountants and get:

• Specialist VAT advice & planning 📊
  
  
• Accurate VAT returns & bookkeeping 📘
  
  
• Audit-ready compliance assistance 📁
  
  

🚀 Ready to Safeguard Your Business?
✔️ Get your VAT systems checked – Visit Tax Affinity Accountants
✔️ Book a free VAT fraud risk review
✔️ Follow us on Facebook : https://www.facebook.com/TaxAffinity/
      Twitter: https://x.com/Tax_Affinity/
      LinkedIn: https://www.linkedin.com/company/tax-affinity-accountants-ltd
      For practical VAT and tax tips

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert tax accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

🔍 Stay Ahead with These Key Hashtags:
#VATFraud #HMRCScams #VATCompliance #PhishingAwareness #TaxAffinity #BusinessProtection #FinanceSecurity #SmallBusinessTax #TaxAffinityAccountants #Compliancecheck #Trending #Fyp #TaxAdvisor #TaxAccountant #Investigation #Support #SME #Smallbiz #Smallbusinessowner

 🔔 Major MTD Changes Coming: Are You Ready for Digital Self-Assessment?

From April 2026, self-employed individuals and landlords earning over £50,000 will face a big shift in how they report their taxes. And just a year later, in April 2027, this will extend to those earning £30,000 or more. These new rules are part of HMRC’s Making Tax Digital (MTD) initiative — a digital-first transformation of the UK tax system.
So, what does this mean for you — and why is it so important to act now?

📌 What is Making Tax Digital (MTD) for Income Tax?
Making Tax Digital is HMRC’s ongoing initiative to modernise the UK tax system. Under this scheme, certain taxpayers will no longer be able to submit one annual Self Assessment return. Instead, they must:
✅ Keep digital records of all business and property income and expenses
✅ Use MTD-compatible software to submit updates every quarter
✅ File a final end-of-year declaration digitally
The goal? More accurate, timely reporting — but also greater burden for those unprepared.

🧠 Who Is Affected?The upcoming changes apply to:

• Self-employed business owners
• Landlords with rental income
• Individuals with combined self-employment and property income

If your total gross income from self-employment or property exceeds:

• £50,000 from April 2026
• £30,000 from April 2027

Then you must comply with MTD for Income Tax.
Still unsure if you fall into this category? -  Call Tax Affinity for a free eligibility check.

⏰ Why You Should Act Now
The transition to MTD won’t be a simple software upgrade. It requires a complete rethink of your record-keeping and ongoing reporting habits.
Without expert support, you risk:
❌ Missed deadlines
❌ Incorrect submissions
❌ Hefty HMRC penalties
Don’t let poor preparation cost you money — or your peace of mind.

💼 Why Choose Tax Affinity Accountants?
At Tax Affinity, we’re not just accountants — we’re digital tax transformation specialists. As the MTD deadline approaches, we offer:
🛠️ Full MTD Setup & Software Integration
📚 Real-time bookkeeping solutions
📅 Quarterly updates submission on your behalf
🧾 Expert tax advice tailored to landlords and sole traders
📞 Unlimited support with a dedicated personal accountant
With over 20 years' experience helping individuals and businesses stay compliant, we’re your trusted partner in the digital tax era.

💡 What Sets Us Apart?✔️ Transparent, fixed pricing
✔️ Tailored MTD packages — no “one size fits all”
✔️ Local, friendly, and jargon-free support
✔️ Recognised MTD-ready by HMRC
✔️ 5-star rated across Google, Trustpilot, and Facebook
Thousands already trust us — it’s time you did too.

📣 Take the Next Step — Before It’s Too Late
The longer you wait, the harder the transition becomes. But with Tax Affinity by your side, it’s easy, stress-free and fully HMRC-compliant.
👉 Book your free MTD readiness consultation today
📞 Call us or click here to fill our contact form on our website
🌐 Visit: www.taxaffinity.com

🛡️ The Bottom Line
MTD is not just another box to tick. It’s a major change in how you manage your finances. The good news? You don’t have to face it alone.

Tax Affinity Accountants are here to make it easy, affordable, and penalty-free. Don't settle for guesswork — partner with the experts.

👉 Switch to Tax Affinity today — before the rush hits. You'll be glad you did.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

🔍 Stay Ahead with These Key Hashtags:
#MakingTaxDigital #MTDforIncomeTax #SelfAssessment2026 #SelfEmployedTax #LandlordTaxUK #HMRCMTD #DigitalTax #UKTaxChanges #MTDHelp #TaxAffinityAccountants #TaxComplianceUK #MTDExperts #MTDDeadline #MTD #TaxAffinity #contractoraccountant #contractors #consultant #contractor #consultants

Navigating the intricate landscape of taxation can be a daunting task for many, often leading to stress and uncertainty. At Tax Affinity Accountants, we understand the challenges our clients face and are committed to addressing these concerns with expertise and personalized solutions.

Common Pain Points in Tax Accounting

1. Minimizing Tax Liability Legally
   • Clients often seek ways to reduce their tax burdens without breaching legal boundaries. The complexity of tax laws can make it challenging to identify legitimate deductions and allowances.
2. Ensuring Compliance and Avoiding Penalties
   • The fear of incurring fines due to non-compliance or errors in tax filings is prevalent. Staying updated with ever-evolving tax regulations requires constant vigilance.
3. Managing Cash Flow and Financial Planning
   • Effective cash flow management is crucial, especially for small businesses. Unexpected tax liabilities can disrupt financial stability and hinder growth.
4. Time Constraints and Administrative Overload
   • The administrative burden of maintaining accurate financial records and meeting deadlines can be overwhelming, diverting focus from core business activities.
5. Access to Expert Advice and Strategic Planning
   • Clients desire proactive guidance to optimize their financial strategies, but may not always receive tailored advice that aligns with their unique goals.

How Tax Affinity Accountants Address These Challenges

• Personalized Tax Planning: We offer customized tax strategies that align with each client's financial objectives, ensuring compliance while optimizing tax positions.
• Proactive Compliance Management: Our team stays abreast of the latest tax laws and regulations, ensuring all filings are accurate and timely, thereby mitigating the risk of penalties.
• Comprehensive Financial Analysis: We assist clients in understanding their cash flow dynamics, providing insights that facilitate informed financial decisions and sustainable growth.
• Efficient Administrative Support: By leveraging advanced accounting software, we streamline bookkeeping and reporting processes, reducing administrative burdens and enhancing accuracy.
• Strategic Business Advisory: Beyond traditional accounting services, we act as trusted advisors, offering insights that drive business success and financial well-being.

Client Testimonials
"Over the last 11 years, we have used Tax Affinity in Kingston, Surrey, to handle all our accounting needs. They have always provided excellent service with unbeatable value for money."

Our Commitment to Your Success
At Tax Affinity Accountants, we pride ourselves on having a genuine 'affinity' with our clients and their business needs. Our ethos centers on caring and supportive service, focusing our accountancy skills specifically for small businesses and all types of taxpayers needing tax returns in Kingston upon Thames. We lead, inspire, and facilitate when others simply crunch numbers.

Contact Us
Get in touch and click this link to go to our contact us page.

We invite you to experience the difference of working with a team that truly understands and addresses your tax and accounting concerns. Let us partner with you on the journey to financial clarity and business success.

Tax Affinity Accountants
Expert advice. Proactive solutions. Financial success.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

#tax #accountant #reducingtax #taxes #taxaffinity #accountants #avoidingpenalties #hmrc #penalty #trending #cashflow #time #burden #growth #strategy #trust #expertise #riskmanagment #investigations #digital #accoutancysoftware

"@Tax_Affinity #Accountants are simply amazing. My dedicated #Tax #accountant is super knowledgeable & supportive. Even when he is not available they have superb coverage to handle all my queries and the HMRC investigation was ended quickly" another happy client

With the rapid rise of HMRC investigations in the UK, especially around VAT, personal income taxes and company tax. And subsequently we are seeing a rise in the number of tax payers coming to us asking for help because their bookkeeper or accountant could not help them.

As expert tax accountants we understand the questions and requirements of HMRC and carefully investigate your information to support you and reach a good conclusion in the compliance check. We speak to HMRC on behalf of our clients to help leave them to carry on concentrating on their day to day lives without the stress and worry of the compliance check.

We have also noticed a huge rise in many unlucky clients who have been the victim of hundreds of thousands of pounds of VAT fraud from callers saying they are calling from HMRC and asking for their HMRC VAT portal login information because they are 'doing routine system maintenance'. Never share your login and password information to anyone on the phone as they will go intoyour account change the details and submit refund requests in your name to their account. HMRC or any reputable tax accountant would never ask you for your personal login and password. HMRC authorised agents, like us have our own HMRC gateway, so can easily request login access, the correct way, by asking HMRC to send you an authorisation code by post.

If you have been unlucky enough to be caught with online fraud or have received a HMRC letter about a compliance check (investigation). Then get in touch immediately and let one of our tax experts help you. Struggling on your own is not a good option in the long run because you will nearly always end up worse off financially. Thats also why many private bookkeepers and accountants contact us about their clients and ask us to help them behind the scenes, they know they need a tax expert.

Tax Affinity Accountants are experts in Tax and Business Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

#recommended #compliancecheck #accounts #director #CIS #paye #selfemployed #ltd #payroll #corporationtax #incometax #Compliance #check #hmrc #investigation #VAT #VATcheck #highnetworth #highnetworthindividuals

Tax Affinity Accountants are rated as experts in Tax and Accounting Industry and because of our experience and expertise with Tax we can help clients to both legally minimise their tax and make the best plans for the future.

We never recommend breaking any rules but instead using our expertise know that there is more than enough scope with the framework to legally reduce taxes and still have the peace of mind. And because we stay abreast with the latest changes and developments we are are always at the forefront of advising clients when things change.

And you know your in safe hand because Tax Affinity are experts in tax law with a good working relationship with HMRC. There to there to help and support clients if they are involved in a HMRC tax or VAT investigation or have a Worldwide Disclosure / Let Property Campaign letter etc to respond to. We are always able to successfully support and guide clients to the best possible outcome. Just ask one of our many happy clients who sing our praises.

Below is a list of just some of the things we can help with. If what your looking for is not listed we most likely are still able to do it but just didnt want to make the list too long.

Give us a call and have a chat with one of our tax experts or come into one of our high street branches - we will be happy to help.

-          Inheritance tax planning for landlords with estates between £1million - £250million
-          Capital gains tax planning
-          Transferring properties into a limited company - Incorporation
-          Offshore tax planning
-          HMRC Tax and VAT Investigations
-          Code of Practice 8 and 9 investigations
-          Alternate Dispute Resolution
-          Tax Tribunals
-          Forensic Accounting
-          Worldwide Disclosure Facility
-          Let Property Campaign
-          HMRC Check of Self Assessment / Tax
-          Contractual Disclosure Facility (CDF)
-          Code of Practice 8 / 9 / 11 / 14
-          Section 144 Enquiry
-          Section 12A TMA 1970 Notice Investigations
-          Code of Practice 11 (Local Compliance Offices)
-          Code of Practice 14 Investigation (Company Tax Return Investigations)

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

HMRC has extended the self assessment deadline to 28th Feb 2021 due to Covid 19. Allowing tax payers another month to ensure they have their persoanl tax return submitted and tax paid by then.

Normally each the deadline each year is the 31st Jan. But this year as a last minute policy announced a few days before the deadline HMRC extended it saying they will not charge the late filing penalty until after the 28th Feb. And if tax was due the interest for late payment will not be applied until after 28th Feb also. However a close estimate of the tax payable should be paid by the 31st Jan to avoid interest.

If readers have not had their 2019/20 self assessment / personal tax return done. Then they should urgently contact us today to ensure it can be done by the 28th Feb 2021 deadline.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

The Government and the Chancellor have confirmed that self-employed workers whose businesses have been negatively hit by coronavirus (Covid-19) would be able to claim “a second and final grant” in August 2020.

Those eligible can apply for the first grant (which was 80% of average monthly profits up to maximum of £2,500 per month for three months ie £7,500) until 13 July 2020.

In the extension, those eligible for the second and final grant (businesses adversely affected on or after 14 July 2020) can make a claim in August 2020 (to be confirmed when it will open). You can make a claim for the second grant even if you didn’t make a claim for the first grant.

The second grant will be a taxable grant worth up to 70% of your average monthly trading profits (ie £2250 per month), paid out in a single payment covering a further three months’ worth of net profits, to a maximum of £6,570 in total.

Clients are advised if they have not claimed for the first grant to do so by the 13 July 2020. And if they are adversely effected in (June, July and August 2020) then to claim for the second grant also as soon as the scheme is opened by the Chancellor and the Government.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames and Epsom they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Sometimes some a tax payer will have their tax return amended by HMRC after it was submitted. This is a normal thing and nothing to worry about. As it means that HMRC are checking to make sure the information on the tax return matches with the information they hold from other sources e.g. PAYE, CIS etc.

An example is if your tax return did not mention a former employer in the tax year and HMRC records show there was a former employer and some income and tax paid at that employer may affect the bottom final tax figure. This means there could be a difference in the final amount of tax due or refund due from HMRC to you.

Sometimes this is not even your fault as you may have handed the new employer your P45 from the previous employer and the new employer should have start your PAYE using the P45 income and tax figures and carry forward from there, but for a number of reasons the new employer could not do this and therefore the tax code is set on a default standard code meaning you have received 2 lots of tax free allowance in a year.  When this happens towards the end of the tax year (April) HMRC cannot send a notice to amend the tax code to the employer in time to adjust the over / under paid tax. So, they wait instead for the information to be included in the tax return to automatically update with the full info for the year.

Therefore it's not a problem but a normal procedure by HMRC to ensure a tax payer is correctly aligned with their records held and their tax paid is correct. Unfortunately for a tax payer, sometimes this means handing back some of a tax refund as paid by HMRC previously or having a higher tax bill at the end of the tax year.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.