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

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

From 6 April 2026, the 100% rate of agricultural property relief (APR) and business property relief (BPR) is only available on the first £2.5m of qualifying business and agricultural property. The allowance was increased to £2.5m from £1m following extensive lobbying by farmers. APR Agricultural property relief (APR) allowances a person to pass on agricultural property either free of inheritance tax or at a reduced rate either during their lifetime or on their death. Agricult

State pension entitlement depends on a person having sufficient qualifying years, which in turn depends on them having paid or been treated as having paid sufficient National Insurance contributions. A person will receive the full single tier state pension (also known as the new state pension) if they have at least 35 qualifying years. Where a person has less than 35 qualifying years but at least ten, they will receive a reduced state pension. A person with less than ten qual

As the end of the 2025/26 tax year approaches, it is a good idea to undertake a financial review and assess whether there is any action you can take to cut your tax bill. Tip 1 – Don’t waste your personal allowance If you have not used your 2025/26 personal allowance, it will be lost – you cannot carry it forward to 2026/27. To prevent wasting it, consider whether you can advance income so that you receive it in 2025/26 rather than in 2026/27. If you are claiming capital allo

The hourly rate for the minimum wage depends on your age and whether you’re an apprentice . You must be at least: school leaving age to get the National Minimum Wage aged 21 to get the National Living Wage - the minimum wage will still apply for workers aged 20 and under Current rates The rates change on 1 April every year. 21 and over 18 to 20 Under 18 Apprentice April 2025 £12.21 £10 £7.55 £7.55 April 2026 £12.71 £10.85 £8 £8 Apprentices Apprentices are entitled to the app

The government is raising rates of tax on property, savings and dividend income to ensure income from assets is taxed more fairly. Those with property, savings or dividend income pay less tax than those whose income comes from employment or self-employment as they do not pay National Insurance. The government is increasing taxes on property, savings and dividend income to help to narrow this gap between tax paid on work and tax paid on income from assets.  1. What are the cha

What’s Changing — and Why It Matters Under the Economic Crime and Corporate Transparency Act 2023, Companies House is introducing...

The tax code is fundamental to the operation of PAYE. An employee’s tax code provides the employer with the information needed to deduct...

There are various ways in which profits can be extracted from a personal or family company. A popular and tax-efficient extraction...

A VAT invoice is an invoice that contains information required by the VAT regulations. A VAT invoice can only be issued by a business...

The liability for self-employed earners to pay Class 2 National Insurance contributions was abolished with effect from 6 April 2024. Now...

From 6 April 2027, inheritance tax will be payable where someone’s estate at death includes unused pension funds or death benefits. The...

Employers have a duty to enrol eligible staff in a pension scheme. Staff are eligible if they are aged between 22 and state pension age...

In an ideal world, everyone’s estate would be distributed according to their wishes. However, where someone dies without making a will,...

The tax exemption for trivial benefits is a useful one as it allows employers to provide certain low-cost benefits to employees without...

It is easy to make mistakes when completing your VAT return. However, where mistakes are made, it is important to correct them. This is...

Personal and family companies often make loans to directors. However, there can be tax and National Insurance implications of doing so....

Adjusted net income is a key measure of income for tax purposes. It is total taxable income before taking account of any personal...

Simple Assessment is used by HMRC to collect tax underpayments from taxpayers with straightforward tax affairs. It removes the need for...