Space Accounting

📊 Quarterly MTD Update – Stay on Top of Your Taxes

It’s time for your Making Tax Digital (MTD) quarterly update. Key points this quarter:

✅ Simplified VAT & Income Tax – file efficiently with MTD-compatible software
✅ Quarterly deadlines – stay on track and avoid penalties
✅ HMRC guidance & tips – updated to help you comply
✅ Upcoming features – new tools to make reporting easier

💡 Top Tip: Set reminders and use compatible software to simplify your quarterly submissions.

Need support? Message me today!
👉 Don’t wait—stay compliant today!

🚨 MTD is Changing the Way the UK Does Tax in 2026

Are you still managing your accounts the traditional way ? Spreadsheets, paperwork, and last-minute tax stress? 📑

From 2026, the UK is moving further into Making Tax Digital (MTD). That means:

✅ Digital record-keeping
✅ Quarterly updates to HMRC
✅ Real-time visibility of your tax position
✅ Less paperwork and fewer surprises

Businesses and self-employed professionals who prepare early will save time, money, and stress. Those who wait may struggle with the transition.

💡 The good news? Getting MTD-ready is easier than you think with the right systems and support.

📩 Want to know how to prepare your business for MTD 2026?
Send me a message and I’ll show you the simple steps to get started.

Lots of tea, attention to detail and a passion for helping business owners feel in control.

That’s how I keep your finances running smoothly every month!
📸 Here’s a peek into my workspace today.

📌UK taxpayers, are you ready for Making Tax Digital for Income Tax?
Keep digital records, submit quarterly updates, and make your annual filing easier. Learn more in our full guide!

www.space-accounting.co.uk Making Tax Digital for Income Tax UK | Complete HMRC Guide Understand making tax digital for sole traders and landlords to simplify and modernize your tax reporting process.

UK business owners, heads up! ⏰

Starting April 2026, the way UK businesses submit their Corporation Tax (CT600) will change:
💻 No more free HMRC portal – submissions must be made via HMRC-approved software.
📂 CT600 and company accounts will be filed separately – no more joint filing.
🧾 iXBRL format is mandatory – your software must tag all data correctly.
📊 New fields and attachments – including creative reliefs and other allowances.

✅ How to prepare:
1️⃣ Choose HMRC-approved software
2️⃣ Test your submissions before March 2026
3️⃣ Download your historical CT600s and accounts
4️⃣ Ensure your software supports new fields and reliefs

Stay ahead of the curve and avoid penalties for late or incorrect filings! 🚀

⏰ 30 DAYS LEFT to file your Self Assessment ⏰

The 31 January deadline is fast approaching and HMRC penalties start automatically if you’re late.

✔ Avoid £100 late filing fines
✔ Reduce last minute stress
✔ Make sure your return is accurate and compliant

If you’re a sole trader, director, or have additional income, now is the time to act.

👉 Need help with your Self Assessment?
📩 Message us today and let a professional handle it for you.

Don’t leave it until the last minute! HMRC won’t wait.

Trading Allowance – When Do You Still Need to File a Self Assessment?

If you earn extra income on the side, this is important 👇

The UK trading allowance allows you to earn up to £1,000 per tax year from self-employment or casual trading tax-free.

However, you still need to file a Self Assessment tax return if:

• Your gross trading income exceeds £1,000 (before expenses)
• You are already registered for Self Assessment (for any reason)
• You choose to claim actual business expenses instead of the allowance
• HMRC has issued you with a notice to file
• Your income affects benefits or entitlements, such as:
– Maternity Allowance
– Tax Credits
– Universal Credit
– Child Benefit (High Income Charge)

You may still need to declare income even if no tax is due, as HMRC use this information to assess benefits and entitlements.

You generally do NOT need to file if:

• Your total trading income is £1,000 or less
• You are not otherwise required to submit a Self Assessment
• Your income does not impact benefits or other HMRC calculations

⚠️ Important reminders:
• The £1,000 limit is based on income, not profit
• Benefits are often assessed on earnings, not tax payable

If you are unsure whether you need to file, do not guess.
✔️ Review your total income
✔️ Check how it affects benefits or maternity pay
✔️ Speak to HMRC or a qualified accountant

👉 Save this post, share it with anyone running a side hustle, and comment or message if you would like help checking your position.

📊 Year-End Accounts: Is Your Business Ready?

As the financial year comes to a close, now is the time to get your records in order and avoid last-minute stress.

Our latest blog breaks down:
✔ What to review before year-end
✔ Common accounting mistakes to avoid
✔ How to save time and reduce compliance issues
✔ Practical tips to prepare for your accountant or auditor

A little preparation now can save significant time and cost later.

👉 Read the full guide here: https://space-accounting.co.uk/how-to-prepare-your-business-for-year-end-accounts/

If you have questions or need support with your year-end accounts, feel free to get in touch.

🪙 Do you need to pay tax on crypto in the UK?

👉 YES! HMRC treats crypto as a taxable asset.

💸 When do you pay Capital Gains Tax (CGT)?
You may owe CGT when you:
✔️ sell crypto
✔️ swap one crypto for another
✔️ use it to pay for goods/services
✔️ gift it to someone (other than your spouse)
All these actions count as a “disposal”.

💼 When do you pay Income Tax?
Income Tax applies when you earn crypto, for example:
✔️ staking rewards
✔️ mining
✔️ airdrops
✔️ being paid in crypto
HMRC sees this as taxable income.

📊 Allowances for 2025:
• £3,000 — Capital Gains Tax allowance
• £12,570 — Personal Allowance (income)
• £1,000 — Trading Allowance
➡️ Small amounts may fall within allowances, but you still need proper records.

📈 Tax rates:
• CGT: 18% (basic rate) or 24% (higher rate)
• Income Tax: 20% / 40% / 45% depending on your income bracket

📝 Important reminders:
HMRC requires you to keep a full record of:
• dates and values of every transaction
• gains and losses
• transfers between wallets
• staking/mining/airdrop income
Even crypto-to-crypto exchanges can create a taxable event.

🤝 Need help with your crypto taxes?
If you’re unsure how to calculate gains, losses, or where to report them on your Self Assessment, I can help you get everything sorted. Clearly and correctly.

📩 Send me a message for support with your crypto tax return!