Delivering by bike or car across one or more apps, with a big gap between gross earnings and take-home. Many riders do it part-time, so here's how Making Tax Digital for Income Tax applies to you, and when it starts.
MTD for Income Tax phases in by gross income before costs. Delivery has a big gross-to-profit gap, so it's worth checking your total earnings across every app.
Fuel, the bike or car and insurance take a big bite, so your gross earnings are well above your take-home. The threshold looks at the gross figure, and with apps now reporting earnings to HMRC, keeping your own records matters more than ever.
When you're in scope, your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Your app statements are useful records; bring them together so your gross earnings are complete each quarter.
Costs take a big bite, so the threshold can be closer than your take-home suggests. Record earnings and costs to be taxed on profit.
Each app is a separate income source. Reconciled together, they total into one quarterly update.
With apps reporting to HMRC, keeping your own figures accurate means everything reconciles cleanly.
Fuel or mileage, upkeep and insurance are deductible. Choose your method and keep the records.
Juggling statements from a few apps is a hassle. Clear Books brings them together and gives HMRC exactly what MTD needs, whenever you're in scope.
Bring in your app earnings and log your costs as you go, watch your gross against the thresholds, and be ready to submit when your wave lands.
