What does this mean for sole traders and landlords

Why are HMRC doing this?

How can we help? We are fully MTD ready

Act now – April 2026 isn’t far away

Hello and welcome to April — the start of a brand-new financial year! As always, this time of year brings fresh updates from the Government and one of the most notable changes on the horizon is HMRC’s ‘Making Tax Digital’ for Income Tax Self-Assessment which is coming into affect from April 2026.  This is directly affecting small businesses trading through self assessment, and property landlords.

What’s Changing?

If you’re used to submitting a Self-Assessment tax return once a year, things are about to change. HMRC is moving towards quarterly reporting, much like what VAT-registered businesses already do. This means instead of sending in your figures once a year, you’ll now be expected to submit updates every three months, using Accounting software compatible with HMRC, the spreadsheet will become a thing of the past.

Who Does This Affect?

This will roll out in phases:

• From April 2026: If your total self-employed or property turnover is over £50,000, you’ll be required to comply.
• From April 2027: The threshold lowers to £30,000.

This applies to landlords as well as sole traders, so even if you're just renting out property and not running a business, this could still apply to you.

What Should You Do?

If you're likely to be affected, don’t panic. We’ll be in touch with you individually to discuss the best approach and make sure you’re set up well in advance.

It’s worth noting that HMRC has already changed the start date a few times, so we are still in the early days of implementation. Information is a little light at the moment from HMRC side of things, but we’ll keep you updated as soon as we know more.

Here to Help

We know this might feel like a big shift, and it’s perfectly normal to feel unsure about how it will all work. If this news has left you with questions or concerns, please call or message us — we're here to help guide you through it all.

Let’s make this new tax year a smooth one!

Filing your tax return as early as possible comes with several advantages. It removes the stress of last-minute submissions, allowing you to focus entirely on running your business. The self-assessment deadline of 31st January remains unchanged every year, yet HMRC reported that 2.6 million people had not filed their tax returns just two days before the deadline last year.

Missing the deadline results in an automatic £100 fine, with additional penalties for further delays. If your return is more than three months late, daily fines of £10 start accumulating—leading to significant penalties you’ll want to avoid.

You can submit your tax return as soon as April 6th, and filing early comes with a major advantage: you don’t have to pay your tax bill immediately. The payment deadline remains in January, giving you plenty of time to budget for what you owe. Plus, if you’re due a tax refund, filing early ensures you receive it much sooner—unlike those who file in January, when HMRC experiences delays due to high demand.

With a little organisation, you can get your paperwork sorted and your tax return submitted well in advance—leaving you free to enjoy the festive season stress-free. Filing correctly is crucial, as you don’t want to risk overpaying or underpaying your taxes. Seeking professional advice can help ensure accuracy and peace of mind.

Contact us on www.crossaccountingservice.co.uk if you have any concerns regarding your tax return as we are always here to help.

During the pandemic, we have seen an increase in holiday lets. With the restrictions to go abroad, a lot of people have been having a ‘Staycation’ exploring the wonderful options we have in the UK. 

If you have just started out renting homes or holiday lets, there are a lot of rules for these. HMRC are very strict when it comes to rentals. Replacing items need to be based on a like for like, is the property being improved, all these things need to be taken into consideration 

With self-assessments, we are seeing a lot of husband and wife ownership of property currently that don’t realise that both parties need to complete a self-assessment. If rent is being received or if a property has been sold it all has to be declared regardless of your other income.  

If both parties are named on the land registry, you both need to complete a self-assessment return. Unless you have seen a solicitor to change your set up with land registry, any property with joint names is classed as 50:50 ownership. Even if one person has the most interest in the property, all named people on the land registry will have to send a return to HMRC.

It is important you read up the rules on taking income from property, whether it is long term rental or holiday let ownership. The number of people we see not declaring income and then having the shock of HMRC writing to them asking for back dated returns is increasing.

HMRC do have the full facility to check land registry registers and transfers of land ownership. Backdating these returns can be costly for the owner and cause a lot of unnecessary stress.

We are here if you need to query anything regarding your property ownership.

Happy New Year to you all, we hope you’ve had a lovely Christmas. It’s the New Year but some things remain the same, and that’s the deadline of 31^st January for Self-Assessment returns.

Self-Assessment is a system HMRC uses to collect tax. For people who are self-employed, with their own business or others who make additional income. 

The dates for Self-Assessment is 

1^st April 2016 to the 31^st March 2017. With online returns needed to be submitted by

31^st January 2018 and paper returns to have already been submitted by 31^st October 2017.

The best way to keep the tax bill down is to have your paperwork organised. You will need the actual receipts to claim as expenses. Collate your receipts and keep together as HMRC can ask to see evidence at any time. Another great way is to utilise the ISA savings as any interest received is tax-free. You’ll keep your savings on a tax-free basis for as long as you keep the money in your ISA accounts.

Higher rate tax payers benefit from additional tax savings when they contribute in to pension schemes and give to charity.

An example of a list of records you will need are;

•          Business and personal bank statements
•          Records of income
•          Records of purchases
•          P60/P45
•          Rental Income
•          Interest Income
•          Child Benefit and Income Support

You need many other records to keep, here at Cross Accounting we give our clients a more in detail list of records which we require from them to complete their tax return. This also includes a reminder of approaching deadlines to ensure not to be penalised. HMRC fine £100 for anyone who misses the 31^st January deadline.

HMRC have revealed a record number of people are filing for self-assessment this year as the numbers are north of eleven million. If you’re a couple of years behind, then do not worry as you’re not alone, we have taken on a number of clients in this situation, and have supported them and brought them up to date. If you’re not sure if you need to submit a self-assessment or you need to complete a return, you can call us on 02920 653 995 or visit our website on www.crossaccountingservice.co.uk to see how we can assist you. 

Love is in the air this month, with Valentine’s Day just here .. and now is the time to give your business the TLC it also needs.

Investment. Investment in a business can be many things. It can be your investment of time and energy in nurturing your business as it grows. It can be working on your operations, improving your processes and making yourself more efficient.

Investment is money. The business may not be generating you the income you were expecting, so investing some money into the business to spend on a marketing campaign, or buying that piece of equipment that will make the operation run smoother may seem painful initially. We are still at the start of the New Year, getting these investment ideas up and running will be worth it in the end.

Now is the time to take a closer look at your customer base, are you meeting their every expectation? Is there something you are not currently offering that could add value, or which you can use to up-sell to increase your sales turnover? A business which knows their customers very well, and manages their expectations always succeeds.

Marketing. Take a look at your marketing strategy. If you are putting time and money into activities that don’t work, then you need to stop them! Only spend money and time on what works for your business. Measuring the success of your marketing is a very important exercise that needs to be done on a regular basis.

Processes. Is there something you are doing that can be done more efficiently? The difference between profit and loss can often be a case of the process being too cumbersome. So, streamline your processes to meet the changing needs of your business. This will become increasingly vital as your business grows. If you don’t manage your processes – you are guaranteed to waste money.

You the owner. Make sure you are taking care of yourself. If you are busy and stressed you will not have the mindset to focus on your business effectively. Watch your stress points and take regular holidays. I still see far too many clients visiting me looking completely worn out. It’s not good for you – and it’s definitely not good for your business.

Your business is an investment for the future, feed it and it will grow.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.

Your year end can cost you more than you think

Preparing your year end accounts can be costly your business – and that’s before you’ve event considered the financial aspect.

In finding, organising and making sense of your paperwork and records, there are time costs, emotional costs (usually stress!) and work-life balance costs to consider.

15% off your year end with us

Cross Accounting Services can help on all fronts. We love year end and so as a thank you from us, we’re offering 15% off your first year end fees with us.

So, you get to spend time doing the things you love at a reduced all round cost – and we get to spend time doing the things we love, thanks to you!

Call Nicola on 029 2065 3995 and quote reference CA15 to receive your discount or email her asking for more information also quoting CA15 Closing date 31 March 2014

Don’t be one of the £2 million people who leave the updating of their Self Assessment to the last minute, or worse miss the deadline altogether. Bite the bullet if you need help then pick up the phone to an experienced professional.

Many clients that come through our doors, still needing reminding of what information is required to complete their Self Assessment online without a hitch.

Please see my 6 point plan

Your UTR Number and National Insurance
To be able to submit a Self Assessment you first have to be registered with the Inland Revenue as Self Employed. They will then issue you with a 10 digit reference number call a UTR number. This can be done over the telephone 0845 900 0444

Or online, follow the link below.

https://online.hmrc.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-dept

This takes about five to six weeks for the Inland Revenue to register you, you will then have to telephone them to get your 10 digit UTR number. This is not automatically sent to you.

The Government Gateway
To register for Self Assessment online which allows you to send your Self Assessment online, you are issued with a 12 digit reference number which is printed out, and a password gets sent to your nominated address. If you are using an Accountant they will give you an 64-8 form to sign so that they can act as your agent with the Inland Revenue. They will then be able to send off your Self Assessment online through their agency number.

Partnerships
There is mis-conception that Partnership accounts are as straight forward to submit as your normal Self Assessment. You can only send out a paper version if you do this yourself by the deadline 31 October. Or you can submit the form online provided you have professional software, your Accountant professional can assist you with this.

Do not leave these to the last minute or you may find a £100 fine per partner you weren’t expecting if you miss the deadline. This needs to be completed along with your normal Self Assessment as an individual.

Paperwork Required
Self Assessment covers ALL income you receive during the financial year, 6 April to
5 April for in the UK and the rest of the world. This is determined by your residency status, all UK residents are to disclose their whole income.

All records of purchases during the financial year including any equipment or capital expenditure.
VAT return’s if that’s applicable
Your full 12 months bank statements, personal and business including saving accounts.
If you have had other employment all P60’s or P45’s
Dividend and interest payments.
Benefit payments
Property income and foreign income
Selling of personal assets and stocks and shares

All other records of income not covered above.

What you get in return
We will provide you with a full record of your income for the year for your business, along with a tax computation recording all of your other income. This takes into account the relevant tax reliefs available. Ie

Your tax code, – your tax free allowance
Capital gains tax free allowance
Pension payments
Charity payments
EIS and venture capital schemes – Investments
Capital Allowances
Rent a room relief – Property income
Wear and Tear Allowance – Property income

Deducting any tax that you have already paid.

You may be liable for tax on your trade income, and national insurance.

This is not complicated if you give yourself plenty of time to get everything together. We take you through every step of the way.

Payment
You have to make payments on account if your turnover is over £70,000, these are taken at the 31 January deadline and 31 July. We will notify you of these deadlines as they approach.

Monthly you can set up a direct debit with the Inland Revenue

Bill Pay or cheque, any balances then can be settled through the online system Bill Pay, credit card charges apply or by cheque in the post, or through the Giro system at the Post Office.

Self Assessment can be submitted anytime after the 6th April, so if theres a refund due to you why wait until January to get the paperwork to your Accountant. You can do it anytime.

These records need to be kept for six years even if you returned to the PAYE system.

Give us a call today, and make it a stress free process. 02920653995 or email Nicola@crossaccountingservice.co.uk

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.