Important Changes in Self-Employed Taxation and Other Things to Know From 2025

So, the main point is that from 2026, this self-employed tax return thing (that Self Assessment MTD) will be a bit different. Instead of only having to worry once a year, the stress will now come quarterly!

But before you panic, relax! Initially, in 2026, it will only affect those whose self-employed income last year (the 2024/25 tax year) jingled to more than £50,000.

Then, from 2027, those above £30,000 will also join the party, and from 2028, those above £20,000. So, slowly but surely, everyone will be included.

Regarding the quarterly returns, the first batch won’t have to be submitted until July 2026. Until then, no worries, only the usual 2024/25 return is important to see who jumps into the £50,000 club.

Oh, and a few more bits and pieces from 2025:

• The National Minimum Wage will jump to £12.21 from the previous £11.44. A nice little increase!
• Employer National Insurance contributions are also changing. Smaller companies will pay less, while larger ones will pay more. Exciting!
• Self-employed registration will also be a bit easier. You only need to register if your income exceeds £3,000.

It’s worth paying attention to these changes so you don’t get any surprises!

#continentsurfer #uk #hmrc

Want to know more?