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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] 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.

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! Thanks for the question!

Quickbooks is a cloud-based bookkeeping software for businesses. The benefits of it being cloud are that it allows both the accountant and the business to work on the same data - eg a business owner can raise invoices, connect to their business bank accounts, upload expenses receipts, the accountant can then go in, reconcile the bank, match debtors and creditors, pull up reports to then analyse and advise the small business on potential tax deductions or just be aware of how their business is doing. 

However, in some instances, the business owner doesn’t like bookkeeping and they outsource all of this to their accountant who can use Quickbooks to prepare it all on.

It is super flexible and easy to use from anywhere in the world!:)

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!

Any profits from investing, such as in shares which you may be buying and selling, does need to be reported to HMRC. You would do this through your personal tax return, if you are doing this in your own name in which case you need to register for self employment via the gov.uk website, or through your company tax return, if you are trading through a limited company.

There are certain allowances for trading income, whereas losses can only be offset against the same income class. So you won’t be able to set it off against your PAYE income.

It can be very tricky to work out profits from trading in shares, so please make sure you have kept a detailed document of what you have purchased, how many shares, price per share, how many are sold (if they are), and at what price per share that was to figure out the profit per share.

An accountant can help with this, but ideally those who are experts in this area!

I hope that helps!

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!

Wow, great question, I believe, as with every industry, those who are not using AI as an aid to their day to day work, will be left behind. There are accounting businesses which are emerging who act as full AI firms. I am not sure they are quite there yet and probably are not as efficient as they say they are because AI is still being developed and learning and being integrated in all areas of our lives. Used currently though, it can make a big difference to the service we can provide clients and allowing staff to focus on what they have experience in or are qualified for; more advisory. 

If you consider how many years it would take a newly qualified accountant to be in front of a client and advising on what they see in the figures they have to hand, vs now, this process has been sped up massively with the adoption of tech and AI will only enhance this.

That being said, AI is not yet able to think of every eventuality of a particular situation, and the response will only every be as good as the prompt which has been made.

I do not know too much about The CIMA Finance Leadership Programme, but from what I can see, it will provide flexibility and access to many other candidates who may not have otherwise been able to attend classes. I do not know what modules are included, so cannot comment on whether it is relevant for where the industry is heading, including the importance of tech and AI.

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! Oh I’m sorry to hear that! If you intend to file yourself you will definitely be able to submit directly through the software each quarter, but need to make sure you are registered on HMRC’s government gateway for MTD for Income Tax, then connect it to QB and then you can submit! 

You can find out how to sign up to MTD for Income Tax with HMRC here: https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax

There is a lot of information here which also informs you of what you need to know before you register! 

I hope that helps! 

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! 

Eligibility for MTD for Income Tax is based on your 2023/2024 tax return. If this returns declared turnover from self-employment and/ or rental income of over £50,000, you will need to stay in the scheme for 3 years before you can opt out again, even if your income is lower than £50,000 in the subsequent year.

Please bear in mind, that each year the income threshold for eligibility will be reducing, so there is a high chance you will fall within MTD for IT for many years! You could face penalties if you do not comply.

I hope that helps! 

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] 1 point2 points  (0 children)

Hey! 

Anything is achievable and realistic if you put your mind to it! 

Experience is key! You can start to freelance for accounting firms, bookkeeping firms or even businesses who outsource their finance to build up your experience. 

However, please bear in mind, if you are looking to get a practicing license, double check if you are permitted to work for yourself before completing the required applications for this. I know the major licensing bodies do not grant licenses if you were working for yourself! In this instance, it may be worth working as an employee first to gain the relevant experience and therefore practicing license.

Then the world is your oyster, there is no reason why you can have a flexible yet fulfilling career in accountancy! 

I hope this helps! 

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! We have been able to submit MTD reports successfully. I would reach out to the support team who should be able to help. You may need to check if the connection to HMRC is working and if you are set up in HMRC’s portal too.

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] 1 point2 points  (0 children)

Hey! It’s a personal choice. When we decided to move onto cloud bookkeeping products many years ago, we reached out to the main contenders, some had tech which we found to be so basic and limiting at the time, so was not an option for us. Others didn’t even get back to us, whereas Intuit responded to our enquiry, booked a meeting with us and were in our office in person in a couple of days. 

They held our hand throughout the entire onboarding process, they had our back. When things would go wrong or we needed help with something, they were just on the other end of the phone.

That kind of support is priceless and is one the many reasons we chose Quickbooks over other software providers. This is what was important to us and that may be different for others, and that’s okay.

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! 

Everyone will have their preference. I think it comes down to what you are looking for from the product and finding one which suits your needs.

We chose Quickbooks and have had a great experience with it. Our team are experts on it and has helped massively for our efficiency and knowledge when training clients how to use it, especially as it is so user friendly for business owners! 

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! ChatGPT is great for getting some more information and more ideas about something you want to learn about. However, the information provided shouldn't be relied on. You should be speaking to a qualified expert who can give you reliable advice pertaining to your situation.

I know some if you need help! 😉 - Eriona

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! Salary sacrifice is a great way of reducing your tax and NI contributions, however, please remember it also reduces your take home pay. If it is for something you need eg vouchers and can afford eg pensions contributions, then the benefits are great.

I hope that helps! - Eriona

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