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We love accountancy.
We love the things you hate.
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Gloucestersphere Accountants Limited
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Cheltenham, Stroud & Gloucester Accountants

[IMG: Gloucester Accountants]

Do you hate dealing with the financial administration aspects of your business?
Do you wish that you could spend more time focusing on running and growing your business rather than worrying about taxation?
Are you worried that you might make a mistake that will incur a large fine from HMRC – money that you could be spending on the more important things in life?
Are you worried that you will miss tax deadlines?
Are you in the dark about what is tax deductible and what isn’t?
Are you giving more money to the tax man than you need to?

[IMG: Gloucester Accountants]

We love accountancy. We love the things that you hate.
We want to take all the nasty stuff off your desk so that you can concentrate on running your business.
Contact us today for a free initial consultation.

Whatever service you choose it comes with unlimited email and phone support to answer any accounts or tax queries that you have.

[H3] Individuals
Tax affects everyone. Through proactive tax planning we can help minimise this burden and ensure that you are only paying what you are liable for, giving you peace of mind.
[H3] Sole Traders
As a sole trader you run your own business as an individual. You will pay tax on your business profits each year regardless of how much money you draw from the business.
[H3] Partnerships
You and your business partners personally share responsibility for your business. The business profits can be split between the partners however you decide and each partner pays tax on their share of the profits.

[H3] Limited Companies
A Limited Company is an organisation that you can set up to run your business. It is a separate legal entity, is responsible in its own right for everything it does and its finances are separate to your personal finances.
[H3] Limited Liability Partnerships (LLP)
A Limited Liability Partnership is a cross between a partnership and a Limited Company. The business profits are shared between the partners and they are then taxed on the profits each tax year.

[H2]
Latest Blog Posts

[IMG: Making Tax Digital for Income Tax (MTD (IT)]
[H3] Making Tax Digital for Income Tax (MTD (IT)
March 5, 2025  UncategorizedMaking Tax Digital for Income Tax (MTD IT) is a major change in the way self-employed individuals and landlords in the UK manage and report their taxes. It’s part of the government’s initiative [...]0
[IMG: Benefits of completing your tax return early]
[H3] Benefits of completing your tax return early
April 6, 2024  IndividualsThe deadline to complete your 2025/26 tax return is 31 January 2027 (31 October 2026 if you need to file a paper return). There are many advantages to getting your tax return completed early: 1. [...]0
[IMG: Can I claim capital allowances?]
[H3] Can I claim capital allowances?
January 1, 2020  General, Owner managed businesses, Start up, Tax planningCapital allowances are a way of obtaining tax relief on some types of capital expenditure. What is capital expenditure? Expenses you incur in your business can either be capital or revenue [...]0

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[IMG: Making Tax Digital for Income Tax (MTD (IT)]
By Rachael Britnell
Posted March 5, 2025
In Uncategorized
Making Tax Digital for Income Tax (MTD (IT)2025-03-052025-03-05https://www.gloucestersphere.co.uk/wp-content/uploads/2016/10/gloucestersphere-logo-300.pngGloucesterspherehttps://www.gloucestersphere.co.uk/wp-content/uploads/2025/03/taxes-1015399_1280.jpg200px200px
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Making Tax Digital for Income Tax (MTD IT) is a major change in the way self-employed individuals and landlords in the UK manage and report their taxes. It’s part of the government’s initiative to modernise the tax system, making it more efficient and less error-prone.
If you’re self-employed or a landlord, this change will likely affect how you record your income and submit your tax returns. Let’s explore what MTD IT is, how it will impact you, and what steps you need to take to ensure compliance.
What is MTD IT?
MTD IT stands for Making Tax Digital for Income Tax. It’s an extension of the government’s Making Tax Digital (MTD) initiative, which already applies to VAT.
MTD IT focuses on streamlining the process of reporting income tax for:
•Self-employed individuals.
•Landlords
Under MTD IT, you’ll need to:
1. Keep digital records of your income and expenses and bank transactions relating to your business.
2. Submit quarterly updates to HMRC through MTD-compatible software.
3. File a Final Declaration to confirm your annual income and tax obligations. This will include any other taxable income that you have received in the tax year.
Who does MTD IT apply to?
MTD IT will apply to:
•Self-employed individuals (sole traders) and landlords with an annual business or property income exceeding £50,000 starting from April 2026.
•Those with annual income between £30,000 and £50,000 starting from April 2027.
HMRC is still consulting on how MTD IT will apply to individuals earning below £30,000 annually, but it’s important to stay informed about future changes.
I am a partner in a partnership, does MTD IT apply to me?
No, it only applies to self-employed individuals and landlords. At the current time, HMRC have not announced when MTD IT will apply to partnerships.
I have a Limited company, does MTD IT apply to me?
No, it only applies to self-employed individuals and landlords. At the current time, HMRC have not announced when MTD IT will apply to Limited companies.
Is the £50,000/£30,000 my turnover or profit?
The £50,000/£30,000 limits are your soletrader turnover/sales income or your rental income before taking into accounts any expenses.
Eg if your sole trader sales are £55,000 and you have expenses of £12,000 giving you a profit of £43,000 you will fall under MTD IT as your sales are over £50,000.
How will HMRC know that my income is over £50,000?
HMRC will look at the income filed on your 2024/25 tax return to see if you fall under MTD IT from April 2026. Going forward, it will then look at subsequent tax returns to see if you need to join MTD IT from April 2027 onwards.
How will MTD IT affect you?
1.Digital Record-Keeping
If you’re used to keeping paper records or spreadsheets, you’ll need to switch to MTD-compatible software to maintain your records digitally or use bridging software.
2.Quarterly Reporting
Instead of filing a single Self Assessment tax return once a year, you’ll submit four quarterly updates to HMRC. These updates provide a snapshot of your income and expenses throughout the year.
3.End of Year Submissions
You’ll still need to finalise your accounts at the end of the year, but the process will be streamlined through digital tools.
4.Increased Transparency
With regular updates, you’ll have a clearer picture of your tax obligations throughout the year, reducing the risk of surprises at year-end.
What do you need to do to prepare for MTD IT?
1.Determine if MTD IT applies to you
Check your annual income from self-employment or property to see when you’ll need to comply with MTD IT.
2.Choose MTD-compatible software
Popular options like QuickBooks, Xero, and FreeAgent are all MTD-compatible. These tools will help you maintain digital records and submit quarterly updates seamlessly.
3.Organise your records
Ensure your income and expense records are accurate and up to date. If you’ve been relying on paper receipts, it’s time to transition to a digital system.
4.Learn the new process
Familiarise yourself with how to submit quarterly updates and the Final Declaration.
5.Seek professional advice
Navigating MTD IT can be complex, especially if you’re new to digital accounting. A trusted accountant can guide you through the transition and ensure compliance.
What happens if I don’t comply with MTD IT?
Failure to comply with MTD IT requirements may result in penalties from HMRC. These could include fines for late submissions or non-compliance with digital record-keeping rules.
Will I still need to file a Self Assessment tax return?
MTD IT replaces the traditional annual Self Assessment tax return. Instead, you’ll submit quarterly updates and a Final Declaration through your MTD-compatible software. The final declaration will include details of any other taxable income that you have received in the tax year.
Will I need to pay my tax quarterly?
No, at this current time, HMRC have no plans to change the system of collecting tax and tax payments will still be due in January and July in the year following the end of the tax year.
How Gloucestersphere Accountants can help
At Gloucestersphere Accountants, we understand the challenges that MTD IT presents for self-employed individuals and landlords. Our goal is to make the transition as smooth and stress-free as possible.
Here’s how we can support you:
1.Expert Guidance
We’ll help you understand how MTD IT affects your specific situation and create a plan to ensure compliance.
2.Software Setup and Training
Choosing and setting up MTD-compatible software can be overwhelming. We’ll recommend the best option for your needs, handle the setup, and provide training to get you up to speed.
3.Quarterly Reporting Support
We’ll assist with preparing and submitting your quarterly updates to HMRC, ensuring accuracy and timeliness.
4.Year-End Submissions
We’ll manage your year-end submissions so you can focus on running your business.
5.Ongoing Support
We’re here to answer your questions, troubleshoot issues, and provide peace of mind as you navigate MTD IT.
Get Ready for MTD IT with Gloucestersphere Accountants
Making Tax Digital for Income Tax is a significant change, but you don’t have to face it alone. At Gloucestersphere Accountants, we’re experts in helping self-employed individuals and landlords transition to MTD seamlessly.
Still Have questions? We’re here to help!
At Gloucestersphere Accountants, we specialise in helping self-employed individuals and landlords prepare for MTD IT. Whether you need help setting up software or understanding your obligations, we’re just a call away.
Contact us today for a free consultation and let’s get your business ready for the future of tax reporting.

Gloucester accountant, Tax

[IMG: Rachael Britnell]
Rachael Britnell

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[IMG: Benefits of completing your tax return early]
By Rachael Britnell
Posted April 6, 2024
In Individuals
Benefits of completing your tax return early2024-04-062026-04-07https://www.gloucestersphere.co.uk/wp-content/uploads/2016/10/gloucestersphere-logo-300.pngGloucesterspherehttps://www.gloucestersphere.co.uk/wp-content/uploads/2017/03/calculator-1516869.jpg200px200px
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The deadline to complete your 2025/26 tax return is 31 January 2027 (31 October 2026 if you need to file a paper return).
There are many advantages to getting your tax return completed early:
[H2] 1. The tax does not need to be paid until 31 January – no matter when you file the return
Some people mistakenly think that if they complete their tax return early then the tax will also be due early. This is not the case and the tax is due on the same date whether your tax return is submitted on the 6 April or the 31 January.
[H2] 2. If you are due a refund you will receive it sooner
If you have overpaid tax in the year ended 5 April 2026, you will be due a refund from HMRC. The sooner your tax return is completed, the sooner you will receive that refund.
[H2] 3. If you need to apply for a mortgage or rental reference they will often want to see your latest tax return
Getting your tax return completed early will ensure that there are no delays in your application.
[H2] 4. You have more time to save up for the tax bill
An unexpectedly large tax bill received just before it needs paying can be stressful. If your tax return is prepared early then you will have more time to save up the money.
[H2] 5. If you have a payment on account due 31 July you might be able to reduce it
Payments on account are payments made in advance towards the next year’s tax liability. The payment due 31 July 2026 is based on your tax liability from the year ended 5 April 2025. If your tax liability is lower in 2025/26 than in 2024/25 then there may be scope to reduce the payment that is due in July 2026.
[H2] 6. The earlier you prepare your tax return the less likely you are to make mistakes
You will also have plenty of time to request any missing information from banks, investment companies etc.
[H2] 7. You can relax knowing that your tax return is submitted for another year
Gloucester accountant, Quedgeley accountant, self-employed, Tax

[IMG: Rachael Britnell]
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[IMG: Can I claim capital allowances?]
By Rachael Britnell
Posted January 1, 2020
In General, Owner managed businesses, Start up, Tax planning
Can I claim capital allowances?2020-01-012020-05-31https://www.gloucestersphere.co.uk/wp-content/uploads/2016/10/gloucestersphere-logo-300.pngGloucesterspherehttps://www.gloucestersphere.co.uk/wp-content/uploads/2017/08/gears-686316_1920.jpg200px200px
0

Capital allowances are a way of obtaining tax relief on some types of capital expenditure.
[H3] What is capital expenditure?
Expenses you incur in your business can either be capital or revenue (trading) expenditure. If an item will have a lasting benefit for the business (usually over one year) it will be capital expenditure.
These includes items such as cars, vans, furniture and equipment and some additions to property.
You cannot claim capital allowances on the cost of a building, land or property. You will get tax relief on the purchase of the asset when it is sold.
[H3] How do I claim capital allowances?
You claim capital allowances on your or your company’s tax return.
[H3] Can I claim any capital allowances on a building?
You can claim capital allowances on integral features for example electrical systems, heating or ventilation systems, cold water systems etc.
[H3] What rates of capital allowances can I claim?
The normal rate is a written down allowance of 18% per year. There is also a special pool allowance of 6% for certain assets.
Businesses can claim 100% tax relief on most assets under the Annual Investment Allowance (AIA).
[H3] What is the annual Investment Allowance (AIA)?
The Annual Investment Allowance (AIA) provides 100% tax relief on assets qualifying as plant and machinery, subject to an annual maximum (currently £1,000,000).
You cannot claim AIA on cars, items given to you or your business or items you owned for another reason before you started using them in your business eg held personally.
[H3] Can everyone claim the Annual Investment Allowance (AIA)?
AIA is not available for mixed partnerships; those where one of the partners is a company or another partnership.
If you have more than one business you will only get one AIA if the businesses are both controlled by the same person and in the same premises or have similar activities.
[H3] What if I need to spend more than £1,000,000 on assets this year?
If you have claimed the full AIA in an accounting period you will be able to claim 18%/6% written down allowances instead.
This is where tax planning can be useful as it might be possible to delay a purchase until the next accounting period so that you can get full relief on the asset. Although you will have to wait a year to get full tax relief you will get tax relief sooner than if you purchase the asset now and have to claim written down allowances.
[H3] If cars are not covered by the AIA what can I claim?
The written down allowances that can be claimed on a car depend on the CO2 emissions of the car.
≤50g/km – you can claim 100% tax relief in the first year (first year allowance)
50g/km-110g/km – 18% written down allowances
≥110g/km – 6% written down allowance
[H3] Are there any other assets that I can only claim 6% written down allowances on?
You can also only claim 6% on assets included in a special rate pool such as integral features or assets with a long life (useful life of at least 25 years).
[H3] Can I claim full capital allowances if I use the asset personally?
That depends on whether you have a limited company or trade as a sole trade or partnership.
Limited company – private use of an asset is taxed as a benefit in kind so you can claim capital allowances on the full cost of the asset.
Sole trade/partnership – you will only be able to claim the business proportion of the capital allowances. So, if you buy a computer for £1,000 you can usually claim £1,000 under AIA (assuming you have not exceeded the annual threshold) in the first year. If the business use of the computer is 80% you would only be able to claim capital allowances of £800 (80% of £1,000).
[H3] Can I claim capital allowances on my rental business?
You can only claim capital allowances on your rental business if it is a Furnished Holiday Let.
[H3] I claim the cash basis on my tax return, can I claim capital allowances?
You can claim capital allowances on cars (see above).
Under cash accounting you claim equipment that you buy for your business as a normal allowable business expense and therefore get 100% tax relief when you acquire the asset.
[H3] What happens when I sell the asset?
When you sell an asset the sale proceeds are deducted from the balance of the pool of assets, but you cannot deduct more than the original cost of the asset.
If AIA has been claimed there will be no value in the pool and therefore you will be taxed on the proceeds (called a balancing charge). This is because you have received too much tax relief on the asset.
Links:
HMRC Guide to capital allowances

Accounting, company car, Gloucester accountant, limited company, partnership, Quedgeley accountant, self-employed, sole trade, Tax, tax relief, tax starting up in business

[IMG: Rachael Britnell]
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[H2]
Individuals

Tax affects everyone. Through proactive tax planning we can help minimise this burden and ensure that you are only paying what you are liable for, giving you peace of mind.

[H3]
Tax Returns
Self-assessment tax returns are becoming increasingly complex and submitting your tax return late or incorrectly, can result in substantial penalties.
There are many reasons why you might need to complete a tax return. See our Frequently Asked Questions.
Let us navigate the complicated tax return process for you, including the completion of the tax return, filing it online before the 31 January deadline, calculating your tax liability and giving you advice on the tax payments and when they are due.
We can liaise with HMRC on your behalf and deal with any correspondence from them so that you do not have to.

[H3]
Capital Gains Tax
Capital gains tax must be accounted for on the disposal of certain capital assets. This includes selling an investment property, a business or stocks and shares.
It is important to take advice both before acquiring an asset and before making a disposal. This will ensure that all exemptions, allowances and reliefs are claimed and any capital gains tax is kept to a minimum.

[H3]
Tax Planning
We can provide pro-active tax planning advice to help you minimise your tax liability.

Get in touch for a FREE INITIAL CONSULTATION

[H3] Individuals
Tax affects everyone. Through proactive tax planning we can help minimise this burden and ensure that you are only paying what you are liable for, giving you peace of mind.
[H3] Sole Traders
As a sole trader you run your own business as an individual. You will pay tax on your business profits each year regardless of how much money you draw from the business.
[H3] Partnerships
You and your business partners personally share responsibility for your business. The business profits can be split between the partners however you decide and each partner pays tax on their share of the profits.

[H3] Limited Companies
A Limited Company is an organisation that you can set up to run your business. It is a separate legal entity, is responsible in its own right for everything it does and its finances are separate to your personal finances.
[H3] Limited Liability Partnerships (LLP)
A Limited Liability Partnership is a cross between a partnership and a Limited Company. The business profits are shared between the partners and they are then taxed on the profits each tax year.

[H2]
Latest Blog Posts

[IMG: Making Tax Digital for Income Tax (MTD (IT)]
[H3] Making Tax Digital for Income Tax (MTD (IT)
March 5, 2025  UncategorizedMaking Tax Digital for Income Tax (MTD IT) is a major change in the way self-employed individuals and landlords in the UK manage and report their taxes. It’s part of the government’s initiative [...]0
[IMG: Benefits of completing your tax return early]
[H3] Benefits of completing your tax return early
April 6, 2024  IndividualsThe deadline to complete your 2025/26 tax return is 31 January 2027 (31 October 2026 if you need to file a paper return). There are many advantages to getting your tax return completed early: 1. [...]0

Contact Us
Send us a message below and we'll get back to you, asap.

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Sole Traders

As a sole trader you run your own business as an individual. You will pay tax on your business profits each year regardless of how much money you draw from the business.
You will be personally responsible for any losses that the business makes or causes.

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Accounts
We will prepare accounts to help in the completion of self-assessment tax returns.
We will explain your accounts to you in plain English.

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Self-assessment tax returns
Completing even a simple tax return can be complicated, especially given the ever-changing rules and regulations.
We will prepare your tax return and submit it to HMRC.
We will make sure that we claim all the tax allowances that are available.
We can liaise with HMRC on your behalf and deal with any correspondence from them so that you do not have to.
If needed, we can register you and your business with HMRC.
We will notify you of the tax liability and give you a reminder to ensure that the tax is paid on time.
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VAT
If you are VAT registered, we can prepare VAT returns and submit them to HMRC.
See our Frequently Asked Questions for when you need to register for VAT.
We can recommend the best VAT scheme for your business and register it for VAT.

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Payroll
We will prepare your monthly payroll, provide payslips to your employees and also complete all relevant month and year end reporting requirements on your behalf.

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Auto-enrolment
By 2018 all employers will be required to automatically enrol all eligible employees into a pension scheme and to make contributions to that scheme. It will depend on your staging date when your auto-enrolment duties come into effect.
We can advise you on when your staging date is and let you know which employees will be eligible. We can help you set up a pension scheme and process the monthly submissions.

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P11Ds
P11Ds are used to notify HMRC of any benefits in kind that have been made to employees.
If relevant, we can prepare P11Ds for your business and submit them to HMRC.

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Management Accounts
We will provide monthly or quarterly management accounts to enable you to make the right decisions for your business using up to date financial information.
Preparing management accounts can save you money by helping to identify tax planning opportunities, showing how profitable certain areas of your business are and indicating where particular attention needs to be given.

Get in touch for a FREE INITIAL CONSULTATION

[H3] Individuals
Tax affects everyone. Through proactive tax planning we can help minimise this burden and ensure that you are only paying what you are liable for, giving you peace of mind.
[H3] Sole Traders
As a sole trader you run your own business as an individual. You will pay tax on your business profits each year regardless of how much money you draw from the business.
[H3] Partnerships
You and your business partners personally share responsibility for your business. The business profits can be split between the partners however you decide and each partner pays tax on their share of the profits.

[H3] Limited Companies
A Limited Company is an organisation that you can set up to run your business. It is a separate legal entity, is responsible in its own right for everything it does and its finances are separate to your personal finances.
[H3] Limited Liability Partnerships (LLP)
A Limited Liability Partnership is a cross between a partnership and a Limited Company. The business profits are shared between the partners and they are then taxed on the profits each tax year.

[H2]
Latest Blog Posts

[IMG: Making Tax Digital for Income Tax (MTD (IT)]
[H3] Making Tax Digital for Income Tax (MTD (IT)
March 5, 2025  UncategorizedMaking Tax Digital for Income Tax (MTD IT) is a major change in the way self-employed individuals and landlords in the UK manage and report their taxes. It’s part of the government’s initiative [...]0
[IMG: Benefits of completing your tax return early]
[H3] Benefits of completing your tax return early
April 6, 2024  IndividualsThe deadline to complete your 2025/26 tax return is 31 January 2027 (31 October 2026 if you need to file a paper return). There are many advantages to getting your tax return completed early: 1. [...]0

Contact Us
Send us a message below and we'll get back to you, asap.