StarLight Accountancy

🚨 **Making Tax Digital (MTD) Update – Student Loans & Quarterly Reporting** 🚨

If you're **self-employed**, a **sole trader**, or a **buy-to-let landlord** with **qualifying income over £50,000**, there are important changes you need to know under **Making Tax Digital (MTD)**.

📢 **HMRC has now clarified how student loan repayments will work under the new MTD system.**

# # # Key points:

✅ MTD software will use your **Student Loan Plan (Plan 1, 2, 4, 5 or Postgraduate Loan)** to estimate your student loan repayments during the year.

✅ **Quarterly student loan calculations are only estimates** – you do **not** pay these amounts each quarter.

✅ After your fourth quarterly update, you must still submit an **annual Self Assessment tax return**.

✅ Your MTD software will calculate your **actual student loan repayment** using your total annual income.

✅ The final amount will:

* Replace the quarterly estimates.
* Be included in your overall tax liability.
* Be due by **31 January** following the end of the tax year.
* Be reported to the **Student Loans Company** and applied to your loan balance.

💼 If you also have **PAYE employment**, any student loan deductions made through your employer will be taken into account. It's important to check your figures carefully to ensure everything is correct.

📅 **Important deadline:**
The first quarterly MTD submission for taxpayers with qualifying income over **£50,000** is due by **7 August 2026**.

Many taxpayers have still not registered for MTD. Although HMRC has confirmed that **penalties will be waived during the first year**, it's important to register and prepare in good time to avoid future compliance issues.

Need help with **Making Tax Digital**, **Self Assessment**, or **student loan reporting**?

📞 **StarLight Accountancy** is here to help you stay compliant and stress-free.

📧 [[email protected]](mailto:[email protected])
🌐 starlightaccountancy.co.uk

💷 **Are You Making These Costly Self-Employment Expense Mistakes?**

Claiming business expenses can reduce your tax bill—but only if you get it right. Many self-employed people miss out on tax savings or make mistakes that could lead to penalties.

Here are **5 common expense mistakes to avoid:**

❌ **1. Claiming Personal Expenses**
Only expenses that are **wholly and exclusively** for your business can be claimed. Mixing personal and business costs could result in an HMRC enquiry.

🧾 **2. Not Keeping Receipts**
No receipt? It may be difficult to claim the expense. Use accounting software or a receipt-tracking app to keep your records organised throughout the year.

🏠 **3. Misunderstanding Working from Home Rules**
Working from home doesn't mean you can claim everything. There are specific HMRC rules, including simplified expenses, so make sure you understand what you're entitled to.

💰 **4. Forgetting to Claim Allowable Expenses**
Many self-employed people pay more tax than necessary simply because they forget to claim legitimate business expenses. Review all allowable expense categories before submitting your tax return.

📂 **5. Not Keeping Records Long Enough**
HMRC requires you to keep your business records for **at least 5 years after the 31 January submission deadline**. Good record-keeping protects you if HMRC asks to review your return.

✅ **Need help with your Self Assessment or business accounts?**

At **StarLight Accountancy Ltd**, we help sole traders, freelancers and small business owners maximise legitimate tax relief while staying fully compliant with HMRC.

📞 **020 8129 1097**
📧 **[[email protected]](mailto:[email protected])**
🌐 **[www.starlightaccountancy.co.uk](http://www.starlightaccountancy.co.uk)**

Let us help you keep more of what you earn—legally and confidently.

💷 **Are You Missing Out on Tax Savings?**

If you're **self-employed**, claiming all your allowable business expenses could help reduce your tax bill legally.

Here are some common expenses you may be able to claim (provided they're **wholly and exclusively** for business use):

✅ Office expenses (stationery, software, phone, internet)
🚗 Business travel and mileage
🏠 Working from home costs
📢 Marketing and advertising
🛡️ Business insurance
📚 Professional subscriptions and training
👨‍💼 Accountancy and legal fees
📦 Stock, materials, and equipment

⚠️ **Don't forget:** Keep all your receipts and maintain accurate records. Good record-keeping not only helps maximise your tax savings but also ensures you're prepared if HMRC requests evidence. With Making Tax Digital (MTD) becoming more widely applicable, keeping digital records is more important than ever.

At **StarLight Accountancy**, we help sole traders, freelancers, and small business owners:
✔ Maximise legitimate tax relief
✔ Prepare accurate Self Assessment tax returns
✔ Stay compliant with HMRC
✔ Keep more of what you earn

📞 **Need help with your Self Assessment or business accounts?**

Contact **StarLight Accountancy Ltd** today for friendly, professional advice.

🌐 www.starlightaccountancy.co.uk

📧 [email protected]

📞 020 8129 1097

Ever wonder what powers clear financial insights and confident decision-making? It's more than just numbers—it's a commitment to trust, support, and innovation. At Starlight Accountancy, our digital hub is designed to reflect these values, offering easy access to tools and guidance that support your journey. See how our brand identity comes to life online. Visit your website to learn more about our approach and services crafted with professionalism and care.

📢 Important Update from StarLight Accountancy Ltd

The UK Government has confirmed major changes to Companies House accounts filing requirements under the Economic Crime and Corporate Transparency (ECCT) Act 2023.

🔹 Effective from 1 April 2028 (postponed from 1 April 2027)

Key changes for UK companies:

✅ Small companies and micro-entities will be required to file a Profit & Loss Account with Companies House.

✅ All companies must submit their annual accounts using approved commercial software.

✅ Companies House web and paper filing routes for annual accounts will be withdrawn.

✅ Small companies and micro-entities will be able to opt out of having their Profit & Loss Account published on the public register (subject to further guidance from Companies House).

📅 Businesses now have approximately 21 months to prepare for these changes.

💡 If your company currently files accounts manually or through the Companies House web filing service, now is the ideal time to start transitioning to software-based accounting and filing solutions.

At StarLight Accountancy Ltd, we are helping businesses prepare for these upcoming changes, ensuring compliance while streamlining their accounting processes.

📞 If you would like advice on how these reforms may affect your business, please get in touch with our team.

Call now to connect with business.