ACCOUNTANTS FOR SELF-EMPLOYED & FREELANCERS

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Are you looking for a dedicated accountant for your self-employed business? Our Business Package provides a comprehensive monthly accounting service designed for self-employed professionals, landlords, freelancers (sole traders), and high-net-worth individuals.

ACCOUNTANTS FOR SELF-EMPLOYED PROFESSIONALS & FREELANCERS

This package includes bookkeeping, annual accounts preparation, MTD support where applicable, and the filing of your Self Assessment tax return.

• Dedicated Accountant for Business: Each of our monthly accounting packages includes a dedicated accountant, ensuring the delivery of exceptional service to every client.

• Xero IGNITE for Business: Your business records are maintained on Xero Ignite, Xero’s recommended plan for start-ups and growing businesses. It covers essential features such as bank feeds, invoicing (up to 20 invoices and 10 bills), analytics, and more.

• Register for Self Assessment/Set up as sole trader: We register you as a sole trader with HMRC. As a sole trader, you pay tax through Self Assessment and must file a tax return each year. Operating as a sole proprietor is the most common way to start a business in the UK. You run your business as an individual and retain all profits after tax, while also being personally responsible for any business losses.

• Bookkeeping (30 minutes) for Business: We handle your bookkeeping for up to 30 minutes per month. Maintaining accurate records helps you manage your business effectively and provides an audit trail for tax purposes. By law, you must keep records of all business income and expenditure for at least 5 years from the 31 January submission deadline following the relevant tax year.

• Annual Accounts for Business: We prepare your annual (year-end) accounts and financial statements, including a Profit and Loss Account and Balance Sheet (if required).

• Self Assessment tax return for Business: We prepare and file your Self Assessment tax return (online), ensuring full compliance with HMRC requirements.

MAKING TAX DIGITAL FOR INCOME TAX (MTD FOR ITSA)

If you require support with Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), you can subscribe to this package. MTD is HMRC’s programme to move tax reporting to digital record-keeping and more frequent submissions. When you fall within MTD for ITSA, the way you report self-employment and/or property income changes significantly. This package includes a Xero SIMPLE subscription, which is HMRC-recognised software covering self-employment and/or property income under MTD.

Who Will Be Affected

From April 2026: Individuals with total gross income over £50,000 from self-employment and/or property. From April 2027: Individuals with total gross income over £30,000. There is no start date yet for people with income at or below £30,000. Total gross income refers to turnover before expenses, not profit.

NEW REPORTING REQUIREMENTS UNDER MTD

Keep Digital Records

You must maintain digital records of:

• Income
• Expenses
• Dates and amounts

This must be done using MTD-compatible software.

Submit Quarterly Updates

Instead of a single annual tax return, you must submit 4 quarterly updates per tax year. These are summaries of income and expenses, not tax calculations. Each update is due one month after the end of the relevant quarter.

Submit an End of Period Statement

After the tax year ends, you must:

• Finalise your income figures
• Make accounting adjustments such as accruals and capital allowances
• Confirm the final figures to HMRC

Submit a Final Declaration

This replaces the Self Assessment tax return and brings together:

• Property income
• Other income such as employment, dividends, or interest
• Claims for reliefs and allowances

Tax is then finalised and paid in the usual way.

Important Points for Landlords

• Quarterly updates do not create a tax bill on their own
• Tax remains payable annually on 31 January
• Jointly owned property is reported according to each owner’s share

Overseas rental income is fully included within scope of MTD ITSA. For this purposes, property income is split into 2 separate property businesses:

1. UK property business

2. Overseas property business

Overseas property income counts towards the £50,000 and £30,000 thresholds and is included when calculating total gross income from:

• Property, and
• Self-employment

It does not matter where the property is located.

Practical Impact

For landlords, MTD means:

• More frequent reporting
• Greater reliance on accounting software
• Less scope for last-minute annual record-keeping

Increased need for ongoing bookkeeping

Many landlords will need to change how they currently track rental income and expenses.

Not quite what you are looking for? Our packages can be tailored to your specific needs. Xcountant® is a London-based accounting firm helping business owners save time and money while staying compliant with UK tax and accounting regulations. Join Xcountant® today.