Money: Self-Assessment, Expenses and Making Tax Digital

Nobody becomes a nail technician because they love bookkeeping. But the tax side of self-employment is a small number of dates and a habit, and getting it wrong is expensive in a way that is entirely avoidable.

Your year

MTD for Income Tax began in April 2026 for sole traders with turnover over £50,000, and drops to £30,000 in April 2027. It means quarterly digital reporting through approved software, not one annual return. If you are near either threshold, get your record-keeping onto software now rather than in the month it becomes compulsory.

The payment on account is the single most common nasty surprise for newly self-employed people. In your first January you can be asked for your whole first-year bill plus half of it again as an advance on next year. Put money aside from day one and it is a non-event.

Expenses people routinely forget

You started trading in June 2026 and expect to earn £14,000 in your first year. When must you register for Self Assessment?