Your Ledger

25/05/2025

Submitting your Self-Assessment tax return early in the tax year can be an effective strategy for managing your tax obligations.

Filing your return sooner means you'll know how much tax you owe much earlier, which can help with planning and budgeting for the year ahead.

Additionally, early submission allows any tax refunds due to you to be processed sooner, improving your cash flow.

It also gives you more time to accurately calculate any eligible reliefs or allowable expenses, potentially reducing your tax liability and freeing up valuable funds for your business.

Another benefit of submitting your tax return early is that it provides you with proof of income—something that can be challenging for the self-employed to obtain. This proof is essential if you need to apply for a mortgage, claim benefits, or open a savings account.

Lastly, waiting until the last minute to file your tax return can lead to stress, mistakes, and late submissions that may result in penalties from HM Revenue & Customs (HMRC). This was the case for over one million taxpayers who missed the 31 January 2025 deadline.

By filing your tax return at the start of the tax year, you can get it out of the way, gain peace of mind, and focus on other business and financial priorities.

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26/04/2025

Enhanced Dividend Reporting for Directors from April 2025

Starting 6 April 2025, many company directors will be required to provide more detailed information about their dividend income on their Self-Assessment tax returns.

This change is expected to impact approximately 900,000 directors across the UK.

HM Revenue & Customs (HMRC) will now ask directors to report the following for each company from which they receive dividends:

Company name and registration number

The highest percentage of shares held during the tax year

The total dividend income received

These details must be reported separately from any other dividend income sources.

Currently, directors only declare their total dividend income, giving HMRC limited insight into how much derives from their own business versus other investments. The upcoming changes aim to improve transparency and enable HMRC to better monitor remuneration and target compliance measures.

Scrapping of Employee Hours Reporting

The Government has officially dropped its plan to require employers to report actual hours worked by employees through payroll. Initially postponed to April 2026, the proposal has now been shelved due to its projected implementation cost of nearly £60 million.

Mandatory Close Company Questions Coming

From the 2025/26 tax year, Self-Assessment returns will also include a compulsory question asking whether the taxpayer is a director of a close company.

Directors will need to ensure they have accurate records—particularly where shareholdings change mid-year or involve different share classes.

These updates reflect a broader move towards increased transparency and more granular personal income reporting.