Self Assessment
If you are in a business partnership or if you are self-employed as a sole trader and earned more than £1,000 in the tax year, it is a legal requirement to submit a self-assessment form and supporting documents to declare and pay your personal income tax liabilities. You also need to meet the deadlines imposed by HMRC so that you avoid unnecessary fines and interest charges.
We can help with your filing and tax return obligations, whether you are a private client, a sole trader, a partnership or a company director. In certain circumstances, you might also be entitled to tax relief. Our range of self-assessment services include:
- Liaising with HMRC to ensure compliance with regulatory requirements
- Preparation of personal and partnership tax returns
MTD for ITSA
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requires businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter using compatible software.
For individuals, MTD for ITSA will be introduced in two phases:
- from April 2026, for those with qualifying income over £50,000
- from April 2027, for those with qualifying income over £30,000
From April 2026, the scheme will apply to sole traders and landlords earning over £50,000 and for those earning over £30,000 in 2027. Now, this is expanding to those with income above £20,000 by 2028.
This gradual lowering of the threshold means around 900,000 sole traders will be brought into the MTD regime by 2028.
As part of this scheme, HMRC will be cracking down on late payments of both VAT and Self-Assessments.
Previously taxpayers would incur a penalty of two per cent of the tax owed if the outstanding tax was not paid within 15 days and four per cent if the tax was not repaid within 30 days.
Now, taxpayers within the MTD scheme will face a 3 per cent charge on any outstanding tax if it remains unpaid after 15 days, with a further 3 per cent added if the amount is still overdue at 30 days.
In addition, the annualised interest rate applied to late payments will more than double – rising from the current 4 per cent to 10 per cent.
Those who are yet to react to MTD for ITSA due to the small scale of their business operation will now need to act quickly to avoid being caught outside of the scheme in the years to come.
