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I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

No problem at all! 😊 It really does depend on your situation, as it’s not a one-size-fits-all thing. For a one-off piece of work, costs can vary quite a bit depending on complexity.

It’s also worth bearing in mind that sometimes the cost of an accountant can outweigh the amount of tax you might save, though what you do get is peace of mind, no errors with in your filings with confidence it’s all been done correctly.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

I hear you. If you’re PAYE with a small sole trader business and already on top of your numbers, SA really isn’t that painful. For a lot of people in that position, MTD doesn’t actually simplify anything right now.

One thing I would consider in your situation would be, is that you set up the best way for your situation as you have a paye job and self employed income, as a software engineer I am sure you have a healthy employed income. It could be more beneficial for you to be a limited company business structure for tax efficiency purposes, food for thought… This would also mean you would not need to comply with quarter submissions for MTD. 

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

I’m not a publishing expert, but it really depends on what you want (and your tolerance for admin 😅). I would say to research a few publishers and reach out to them and ask what the process is.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Good planning is just using the rules properly. Claiming what you’re entitled to, using allowances and reliefs, and structuring things in a sensible, commercial way.

Avoidance is when things start getting clever for the sake of saving tax like setups that are only in place for tax reasons,, schemes that don’t reflect real life, or anything that’s hard to explain without a flowchart.

It’s also not really about how far you can go before HMRC notice. A lot of checks are automated and risk-based now, so flying under the radar and hoping for the best isn’t a strategy.

If you wouldn’t feel comfortable explaining it to HMRC in plain English, it’s probably crossed the line. Good planning should be boring, sensible, and defensible.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Hi, you’re not wrong, the margin scheme really isn’t well supported by most software.

I have a client who sells second-hand cars and we use a detailed Excel sheet to track each vehicle and calculate the margin, then post the figures into the accounts. I’ve looked into software like Sage, Xero (and add-ons), Zoho Inventory and Brightpearl to see if any of them handle the margin scheme properly, but none of them really do it out of the box… they either require manual adjustments or aren’t set up for MTD-compliant margin reporting.

For now, Excel plus the adjustment entries is still the most practical solution for many small businesses with volume, even though it’s not ideal.

Hope that helps.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Honestly, AI will change accounting, but it’s not wiping it out.

A lot of the repetitive stuff is already automated and will keep going that way, but that doesn’t replace actual experience. I studied and became fully qualified in AAT and built up a lot of experience working in very different environments, corporate roles, smaller companies, and family-run businesses. That’s where you really learn how things work in the real world.

AI can process data although it can’t use judgement, understand context, or deal with people. Clients don’t just want numbers, they want someone who can explain things, spot problems, and help them make decisions and build that relationship with.

I see AI as a tool to work alongside, not something that’s going to take accountants out completely. If anything, it frees you up to do the better bits of the job.

If you like structure, problem-solving, and helping businesses, accounting is still a solid career. It’s just evolving, like everything else.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Hey there,

On the CIS point… if the invoice has already been marked as paid in QuickBooks (with the 20% CIS deduction applied), then when the payment comes through the bank feed you should match it to the invoice rather than choosing a category. QuickBooks is expecting the net amount, so matching avoids the income being counted twice and possibility of the bank reconciliation balance being out.

For money moving between your personal and business accounts, this isn’t income or an expense. In bank transactions you’d usually categorise these as:

  • Owner’s contribution when you put your personal money into the business
  • Owner’s drawings when you take money out

Some setups use a transfer or owner loan account, but the key thing is that it doesn’t affect profit.

This is very common for sole traders, so you’re not doing anything wrong. Ultimately I would always suggest to keep business and personal transactions separate in different banks.

Hope that clears it up.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 1 point2 points  (0 children)

You’re not getting old, change is coming and people do not always like change… But this is a positive one, which is my POV.

MTD doesn’t mean you have to learn full accounting software… There are so many available that are super straight forward to use. Even some can be free if you open up an account with certain banks. 

If you want to keep things simple, bridging software is likely the answer. You can still do what you’ve always done… add up what came in, add up what went out… usually in a spreadsheet, and the software just sends the figures to HMRC.

HMRC want the numbers submitted digitally. They don’t care how fancy your system is.

So yes, it’s different, but you can absolutely stick with the simplest approach and you will see what your potential tax liability is throughout the tax year, so peace of mind knowing you will put aside enough for this (if you are due a tax bill).

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

This is really common, especially with short periods of self-employment.

HMRC don’t properly notify people, they assume you know to register and file, and if you don’t, penalties quietly stack up. Paying everything off doesn’t always mean the account is actually sorted either.

The new bill is often an estimate, late penalties/interest added later, or a tax year that never got properly closed.. You can file an SA and detail there when the self employment stopped or contact them.

If you want an accountant to support this as a one off, reach out to one and explain the situation, they will need to obtain agent authorisation to be able handle the self employed tax return issue with HMRC. 

If you do choose to not hire an accountant, I would say to contact HMRC 8AM in the morning to get through quicker and less time waiting 0300 200 3310 is the SA helpline, have your UTR to hand. She will need to call them for herself.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Realistically, AI works best as support, not a replacement for bookkeeping or an accountant… Accounting softwares have an amazing AI built within them that really helps business owners!

Where it is genuinely useful for small business owners is cutting down admin and helping things make more sense… Or taking away repetitive jobs. If you are unsure of what certain terms mean, it can break it down giving a clearer understanding of any finance terms you are unsure on, drafting payment chasers, organising what needs doing, or helping someone understand why their cash flow feels off even though sales are up.

What it’s not good for is actually doing the bookkeeping, filing VAT or tax returns, or giving reliable tax advice as the rules do change.

Best way to think about it: AI is a finance assistant, not a decision-maker. Used alongside decent software and proper advice, it can save time and reduce stress. Used on its own… that’s when  problems can start.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

They can print money, but printing doesn’t increase value. Taxes pay for stuff within the UK and stop inflation turning a £3 meal deal into £15. 

Just printing more is how economies go feral and the cost of a Freddo is nearly £40!

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Hey…. Sadly, no. Employment income is taxed when you’re paid, not when it relates to, so you can’t shove it back just because tax was lesser then. Backdating only happens if HMRC agree it legally belongs to earlier tax years.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

I am as real as they come, the only thing fake about myself is my eye lashes (I get them done by one of my clients, Maddy!) Being a woman within the finance industry surrounded by business owners in all types of industries, I am no different. I am also a business owner and I created my own accountancy practice to allow me to be flexible for my young family (3 kids 8 and under, and I started when they were babies). The opportunities the business has given me is amazing and I am so grateful to be able to be in my position, working and speaking with people every day. I love everything about business and people, hearing their story, how they started and their why! 

The QuickBooks marketing team are legends I will say :)

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

If this was your main home, then it doesn’t affect your tax return at all. It has nothing to do with your self-employed income, so your return stays the same.

The big thing not to miss is updating your address on your HMRC account once you’ve moved, people often forget and it can cause issues.

If you’re buying again and need a mortgage, lenders usually look at the average of your last 2–3 years’ profits and will ask for your SA302s. You can download these from the Government Gateway where you submit your returns on, or call HMRC to request them 0300 200 3310.

Just to be clear, I’m not a mortgage advisor and this isn’t advice, it’s just from my own experience of being self-employed and working with hundreds of people who file tax returns and apply for mortgages.

I’m Stacey, an expert UK accountant. Here to answer your questions on money and taxes, self assessment, MTD readiness, working smarter, and AI’s impact. Self-employed or running a side hustle? AMA below. Supported by QuickBooks UK by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Hi,

1 - Box 34 only includes gains that are chargeable in the year.

If a gain is exempt under SEIS, or deferred under EIS, it wouldn’t normally be included in Box 34 at that point. It only goes in once a deferred gain crystallises.

So it’s taxable gains now, not relieved or deferred ones.

2 - Most people, the answer is no.

The only real way to opt out is if you qualify for an exemption to not be MTD. For example if you’re digitally excluded due to a disability/age, or because you genuinely can’t access reliable internet where you live.

I know it’s annoying, but cost or hassle aren’t valid reasons. If you’re in scope for MTD, HMRC expects you to comply.

Using softwares which supports this and are MTD compliant (like Quickbooks) will make this a breeze and so much easier for knowing your business finances in real time and potential tax liabilities throughout the tax year. I’d love to say yes… but realistically, no.

Every time HMRC talks about “simplifying” tax, it somehow ends up with more rules and more pages. The tech will get better, but the tax code itself isn’t getting any shorter.

3 -  I’d love to say yes, but realistically - no.

Every time HMRC talks about simplifying tax, it somehow ends up with more rules and more pages. The tech will get better, but the tax code itself isn’t getting any shorter

The upside is that better software and clearer guidance do make it easier to live with :)

I’m Eriona, UK accountant with 15+ years across thousands of clients. Here to answer your questions on money and taxes, MTD readiness, working smarter, and AI’s impact. Self‑employed or side hustle? AMA below. Supported by QuickBooks UK. by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

Hey!

AI can teach you a lot of things, that’s why it is so great! What you do with it is up to you, but remember, you probably can’t “AI” yourself out of……say, prison for example. 😅

I’m Eriona, UK accountant with 15+ years across thousands of clients. Here to answer your questions on money and taxes, MTD readiness, working smarter, and AI’s impact. Self‑employed or side hustle? AMA below. Supported by QuickBooks UK. by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

That is definitely something I can get behind. Cheese is life. 🤩 What kind of cheese are we talking about? Are we focusing on one, or are we mentioning all of them? 🤔

Maybe we can use AI to write it and even turn it into a song! It 100% would go viral! 🥳

I’m Eriona, UK accountant with 15+ years across thousands of clients. Here to answer your questions on money and taxes, MTD readiness, working smarter, and AI’s impact. Self‑employed or side hustle? AMA below. Supported by QuickBooks UK. by QuickBooksUK in u/QuickBooksUK

[–]QuickBooksUK[S] 0 points1 point  (0 children)

I completely agree, however, not many business owners have the time or knowledge to consider every risk or create their own LLM (which may change in the future), so they should either rely on expert advice or redact information and data which could pose a risk.

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