What’s in it for the self-employed?
Starting with the good news, those with a turnover of less than £85k have been delayed from having to adopt accounting software and quarterly reporting under HMRC’s new Making Tax digital until April 2019. However, on the downside, you will have to pay 10% class 4 national insurance rather than 9% from April 2018, increasing to 11% in April 2019. More good news; you will not have to pay class 2 national insurance from April 2018.
Unincorporated businesses with a turnover of more than £85k will have to commence using accounting software and report quarterly to HMRC from 6 April 2018. If you do not have software up and running already then the ideal time to start is from the start of the new tax year, in April 2017, to give you time to get used to the programme before it is compulsory.
Blog entry by: Amanda Newman.