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Image Description: Brown & Cream Coloured Image Depicting a Typewriter With Wording "Self Employment". Typed On Paper. Image Credit: PhotoFunia.com Category: Vintage Typewriter.

Making Tax Digital (MTD): For Self-Employed & Disabled Entrepreneurs

From April 2026, quarterly digital tax updates will become a legal requirement for many self-employed people. While MTD is intended to streamline the tax system, it also poses new hurdles for disabled entrepreneurs on Universal Credit, who already face disproportionate pressures in managing both business and health. The key is to prepare early, explore HMRC’s webinars and guidance, and seek out accessible accounting solutions.

Brown and Cream Image, Depicting A Typewriter With The Wording 'Business' Typed On Paper. Image Credit: PhotoFunia.com Category Vintage Typewriter.

Comprehensive Guide On Becoming a Partnership or Limited Company

Regardless if you are an able-bodied or disabled person, starting or expanding a business, one of the most important decisions is choosing the right legal structure. In the UK, the most common options are Sole Trader, Partnership, and Limited Company (Director-owned). Each comes with its own legal, financial, and tax obligations. Understanding the differences will help you make an informed choice, avoid pitfalls, and remain compliant with HMRC and Companies House.

Image Description: Brown and Cream coloured Image of a Typewriter with the Wording "Universal Credit" Text on Typewriter Paper. Image Credit: PhotoFunia.com Category: Vintage Typewriter.

Universal Credit Monthly Reporting: Challenges for Self-Employed

Assuming that a disabled person is capable of performing certain tasks or stepping outside their comfort zone without considering their individual limitations can lead to significant legal breaches. Such assumptions may violate the Equality Act 2010, particularly the duty to make reasonable adjustments, as forcing someone to undertake activities beyond their capacity disregards their health and well-being.

Housing Benefits and Self-Employment Income Calculations

There is often confusion around whether income for housing benefits should be based on drawings rather than profit. It’s a common misconception that profit, representing the overall financial gain of the business, should be treated as the business’s turnover, not the income of the person running it.

Reforming Carer’s Allowance

Although carers are not currently mandated to submit self-assessments, maintaining an accurate record of earnings and expenses is a critical practice. An Excel spreadsheet can serve as an invaluable tool, helping carers manage their finances, avoid overpayments, and provide transparency in their dealings with the DWP. By adopting this proactive approach, carers can ensure they receive the support they are entitled to without the stress of potential financial penalties.