Author: Glenn

Most business owners know that progress matters, but many still hesitate when it comes to planning. It can feel like an extra task or something that only large companies need to worry about. Yet, in practice, steady planning is one of the simplest ways to create real progress in any small or medium sized business. The link between the two is stronger than many people realise.

Planning works because it forces clarity. When business owners pause to think through priorities, patterns and pressures, they begin to see what is really driving results. Cash flow issues, capacity limits and pricing decisions all come into focus. This clarity helps owners make better choices, because they can see which actions will genuinely move the business forward and which are distractions. Without planning, decisions are often reactive and progress becomes slow or inconsistent.

Regular planning also builds momentum. A short monthly review of sales, costs, workload and upcoming commitments can help owners stay ahead of issues. They spot pressure points sooner and have time to adjust. Small, steady actions taken throughout the year often make far more difference than a single big push at year end. The cumulative effect is smoother trading, fewer surprises and a clearer path towards goals.

Another benefit is accountability. When owners write down their intentions, it becomes easier to measure progress. Plans do not have to be complex. A simple list of priorities, actions and expected outcomes is enough to bring structure. Even this light level of discipline strengthens focus and encourages follow through. Over time, owners start to recognise how much difference these small habits make.

Making Tax Digital for Income Tax (MTD for IT) will become mandatory in phases from April 2026. If you are self-employed or a landlord and have over £50,000 in qualifying income you need to start preparing to submit quarterly updates, keeping digital records and cope with a new penalty system.

Your qualifying income is the total income you receive in a tax year from self-employment and property. Other income, such as from employment (PAYE), partnerships or dividends (including from your own company), do not count towards your qualifying income.

HMRC will calculate your qualifying income based on your self-assessment tax return you submitted in the previous year. For example, to assess your income for the 2026-2027 tax year, they will use the return you submit for the 2024-2025 tax year which is due to be submitted by 31 January 2026. If your qualifying income is over £50,000, HMRC will inform you when you need to start using MTD for IT.

Qualifying income includes your share of income from jointly owned property, certain trusts, VAT-registered businesses and disguised investment management fees. It does not include business partnership income, transition profits or qualifying care relief payments.

Initially, MTD for IT will only apply to self-employed individuals, and landlords with an annual qualifying income exceeding £50,000. From 6 April 2027, the rules will extend to those with a qualifying income between £30,000 and £50,000. From April 2028, sole traders and landlords with qualifying income over £20,000 will need to follow MTD rules. The government is also exploring ways to bring those earning under £20,000 within the MTD framework at a future date.

While there are many state benefits available, it is not always clear which of these are taxable and which are tax-free.

HMRC’s guidance outlines the following list of the most common state benefits which are taxable, subject to the usual limits:

• Bereavement Allowance (previously Widow’s Pension)
• Carer’s Allowance or (in Scotland only) Carer Support Payment
• Contribution-Based Employment and Support Allowance (ESA)
• Incapacity Benefit (from the 29th week you receive it)
• Jobseeker’s Allowance (JSA)
• Pensions Paid by the Industrial Death Benefit Scheme
• The State Pension
• Widowed Parent’s Allowance

The most common state benefits that usually tax-free include the following:

• Attendance Allowance
• Bereavement Support Payment
• Child Benefit (income-based – use the Child Benefit tax calculator to see if you’ll have to pay tax)
• Disability Living Allowance (DLA)
• Free TV Licence for Over-75s
• Guardian’s Allowance
• Housing Benefit
• Income Support – though you may have to pay tax on Income Support if you’re involved in a strike
• Income-Related Employment and Support Allowance (ESA)
• Industrial Injuries Benefit
• Lump-Sum Bereavement Payments
• Maternity Allowance
• Pension Credit
• Personal Independence Payment (PIP)
• Severe Disablement Allowance
• Universal Credit
• War Widow’s Pension
• Winter Fuel Payments and Christmas Bonus

If you earn fees or sell goods as a side hustle, you may need to pay tax on your profits.

HMRC has launched a new press release encouraging Christmas crafters and anyone with a fee earning hobby to check their tax reporting obligations as part of its Help for Hustles campaign. This is relevant to individuals earning extra income, whether from crafting Christmas decorations, selling festive items at market stalls, or upcycling furniture for seasonal sales. Those earning more than £1,000 in total from these activities may need to report their earnings to HMRC.

To help these side hustlers navigate their tax obligations, HMRC has introduced an online checker tool that helps individuals determine whether or not they need to declare additional income.

There are two £1,000 tax allowances available for small amounts of miscellaneous income: one for trading income and one for property income. Taxpayers who have both types of income can claim £1,000 for each.

• Trading Allowance: If a taxpayer makes up to £1,000 from self-employment (e.g., craft sales or content creation), this income is tax-free and doesn’t need to be declared. However, the £1,000 threshold applies to all combined trading activities. For example, if someone earns £600 from craft sales and £500 from content creation, their total trading income exceeds £1,000 and must be reported to HMRC.
• Property Allowance: If a taxpayer earns £1,000 or less from property-related activities (e.g., renting out a driveway), they don’t need to report this income to HMRC or include it in their tax return.

These allowances cover all relevant income before expenses. If a taxpayer's income is under £1,000, it’s tax-free. If they earn more than £1,000, they can either deduct the £1,000 allowance from their income or list their actual expenses when calculating taxable profit.

However, if side hustle income exceeds £1,000 in a tax year, taxpayers may need to complete a Self-Assessment tax return. This also includes income from cryptoassets. Importantly, this requirement applies only to active trading or selling services. If someone is just clearing out old items, there is usually no need to worry about tax.

For the 2024-25 tax year, the deadline to submit a tax return online and pay any tax owed is 31 January 2026.

If you use your own money to buy items for work, you may be eligible to claim tax relief as long as the items are essential for your job and are used solely for work purposes.

Flat rate expenses (also known as a flat rate deduction) allows you to claim tax relief for a fixed amount each tax year to cover the costs of work clothing and tools required for your job. This tax relief reduces the amount of tax you owe. For example, if you claim a flat rate expense of £60 and pay tax at a 20% rate, you will pay £12 less in tax. When claiming a flat rate expense, there is no need to provide receipts.

A claim for flat rate expenses can be made on HMRC’s portal at www.tax.service.gov.uk/claim-tax-relief-expenses/what-claiming-for. You need to make your claim under the heading ‘Uniform, work clothing and tools (Flat rate expenses)’ in the portal mentioned above. If your employer pays towards your expenses, you must deduct the amount they pay to get the figure you can claim.

HMRC publishes a table entitled ‘Lists of industries and jobs’. The table lists the tax relief you can claim by category. For example, workers in the forestry sector can claim a flat rate expense of £100 and airline cabin crew £720. If your industry or job is not listed, you can claim a flat rate expense of £60 for each applicable tax year.

This tax relief is designed to support employees with essential job-related costs, so it’s worth checking if you are eligible to claim. There is also an option to claim the actual amount you have spent. You will need to provide receipts or proof of purchase if you use this method.