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Making Tax Digital for Income Tax is one of the biggest changes to the UK tax system in recent years. From April 2026, many self-employed individuals and landlords will need to keep digital records and submit quarterly updates to HM Revenue & Customs instead of relying solely on an annual Self Assessment return. In this comprehensive guide, we explain who will need to comply, when the rules come into effect, what the income thresholds are, and how quarterly reporting will work in practice. We also cover key questions about software, digital record-keeping, penalties, and how the changes may affect small businesses, contractors, and landlords. Whether you are already using accounting software or still relying on spreadsheets or paper records, this article will help you understand what MTD means for your business and how to prepare well in advance of the new rules.
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The routine services you would expect us to provide are listed below but it’s the important ongoing professional advice that really helps our clients.
Directors of UK companies are classed as employees for National Insurance (NI) purposes and must pay contributions on their salary and bonuses once their annual earnings exceed the primary threshold of £12,570. These contributions are deducted at specific rates depending on the level of earnings, ensuring that directors contribute towards state benefits and pensions.
The Apprenticeship Levy is a tax introduced by the UK government to encourage businesses to invest in apprenticeships and improve workforce skills. This guide outlines what the levy is, who needs to pay it, how it is calculated, and how businesses can use the funds effectively.
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Starting from 1 October 2024, UK law mandates that employers distribute all tips equally among their staff, retaining none for themselves. Companies receiving tips must first determine if they are "qualifying tips," which includes both employer-received tips, like service charges, and certain worker-received tips, such as cash given directly to staff. Employers are advised to adhere to the code of practice on fair and transparent tip distribution, considering factors like job roles, employee tenure, and customer intent when allocating tips.
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Bad debts are loans or outstanding balances that are no longer recoverable and must be written off. These uncollectible debts significantly impact a company’s financial statements. Managing bad debts is crucial for maintaining financial health, and businesses should consult tax professionals to ensure compliance with relevant regulations. Preventing bad debts involves proactive measures to manage credit risk and ensure timely payments. Key strategies include conducting thorough credit assessments, setting clear payment terms, establishing credit limits, and maintaining regular communication with customers. Additionally, businesses should have well-defined collection policies and consider options like invoice factoring and credit insurance. By implementing these strategies, company directors and contractors can minimize the risk of bad debts and protect their financial stability.
We are experienced certified accountants in Kent that are committed to helping small businesses achieve growth.
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