Room rent or mobile work, cash and card, oils and products and gift vouchers. Many therapists are part-time, so here's how Making Tax Digital for Income Tax affects you, and when it starts.
MTD for Income Tax phases in by gross income before expenses. Many therapists are part-time, so it's worth checking where your gross income sits.
If you rent a room, that rent is your key deductible cost. If you work mobile, it's your travel and mileage instead. Either way, recording income and the right cost keeps your quarterly figures accurate.
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.
Record your income and your room rent or mileage so your quarterly figures show what you actually keep.
Room rent or travel to clients is your main cost. Record whichever applies so your margin is clear.
Both are income. Log cash treatments as you're paid, alongside card takings, so your quarter is complete.
Track vouchers so the timing of income is clear, usually when redeemed for a treatment.
Oils, consumables and insurance are deductible. Snap the receipts so your expenses stay complete.
Room-based or mobile, your records need to keep up. Clear Books works from your phone and gives HMRC exactly what MTD needs, whenever you're in scope.
Record treatments and costs as you go, watch your gross against the thresholds, and be ready to submit when your wave lands.
