How Much Tax will i have to pay?

Yorkie1

Also, with MTD coming in (already), there are going to be five submissions per year…and the cost of getting an accountant to do that will be >£1k per annum. So i think people will have to just do as i do and maximise ones tax bill and do it yourself, and save money by avoiding the accountants fee. "Proper" companies will of course need an accountant.

You do not have to use an accountant for the rest of your career. But paying one for this time around would at least show you what info from various payslips etc. goes where on your IT assessment - so you have a hope of getting it right in future on your own.

molerat

https://forums.moneysavingexpert.com/discussion/comment/82130566#Comment_82130566

I thought you wanted to claim for the Travelodge ?

faringdon

Thanks but Theres no point in claiming for travelodge. Most of my accomodation for the tax year was from booking.com…..and i dont have any invoice for them….and the travelodge bits were only some £500…..so its best to just claim the £1k trading allowance.

My expenses were more than that, but i dont have invoices for most of it…so claiming the £1k trading allowance makes more sense.

Even though (so far) i am not working as a sole trader this tax year (2026-27), presumably i still have to do a tax return?…and from april 2027, (assuming i earn >30k in 2026-27) i have to do MTD quarterly returns?

DRS1

MTD will only test your self employed income (and rental income). So if most of the £30k comes from employment you won't have to worry about MTD.

faringdon

Thanks, though supposing i take on a Sole Trader contract in say Feb2027 (ie my first sole trader contract of the 2026-2027 tax year)……then i won't have submitted the beginning intermediary (MTD) tax returns for that tax year…so i will be in violation ot the MTD laws?

When MTD comes in…will there still be the exact same Main Tax Return to do in "31 Jan 20xx" ?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82131222#Comment_82131222

Could I respectfully suggest that instead of firing out questions as and when they occur to you, it may be worth devoting a little time to research, e.g. via this page and those linked from it?

https://www.gov.uk/government/collections/making-tax-digital-for-income-tax

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82131222#Comment_82131222

If you were in MTD for 26/7 you'd know about it already. So don't worry about it for 26/7.

Yes with MTD there is an end of year return to do (which covers all your income and capital gains not just the self employed income and rental income) and yes it has the same 31 January deadline as a self assessment.

faringdon

Thanks for the MDT guide….though that guide unfortunately doesnt make it clear what software a sole trader who is doing MTD has to use, in order to do the main Jan 31st Tax Return.

Also, nowhere makes it clear whether or not sole traders who will do >£20k turnover in the tax year 2026-27 will have to go MTD in the tax year that is 2028-29..i assume this is the case but it isnt actually stated anywhere directly.

Also, nowhere makes it clear whether or not sole traders who did >£30k turnover in the tax year 2025-26 will have to go MTD in the tax year that is 2027-28..i assume this is the case but it isnt actually stated anywhere directly.

It seems very odd that HMRC isnt providing the MTD software, since they will need to receive and analyse the data used in that software.

I am hoping that the Chartered Accountant from Markwick accountants, who wrote this superb Video on "How to do a tax return", also does one on "How to do MTD".

https://www.youtube.com/watch?v=1kIniJf2TMc

By his excellent explanatory, he has undoubtedly increased the productivity of UK by 1000x, since all those electricians etc, who watched this video…will be doing productive work instead of sitting in front of a monitor wondering how to fill in their tax return.

I think the guy is worth a mention in the New Years Honours…….I'd give him an O.B.E. literally..

There is no other explanatory quite like it. Superb!

… —-

Actually he does do a great initial guide on MTD………(the best ive seen yet by a long way)

https://www.youtube.com/watch?v=SoQld66CPTE

Though He doesnt actually explain how you actually sign up to MTD….and whether if your first sole trader gig comes in say on February of a Tax Year….and you didnt do that tax years MTD updates before that in that Tax year, then do you get into trouble?

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82131644#Comment_82131644

so your first "gig" in Feb 27 will take you over the MTD threshold in a single transaction… but you say you cannot afford an accountant yet have the time to fail to understand DIY despite having "researched" You Tube instead of the gov guidance?

QrizB

Accountancy fees are just one of the costs of being self-employed or running a company. Sure you can DIY if you know what you're doing, but pretty much all the tradesfolk I know choose to use an accountant.