No premises, mileage as your key cost, home-visit cash, a product kit and an appointment app. Many mobile hairdressers are 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 expenses. Many mobile hairdressers are part-time, so it's worth checking where your gross income sits.
Without a salon, your biggest deductible cost is the travel between clients. Logging your mileage as you go, by flat rate or actual costs, keeps your quarterly figures accurate and your profit fair.
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.
Log home-visit cash and mileage as you go so a full day of visits is captured cleanly.
Travel between clients is your main expense. Log it by flat rate or actual costs and nothing is missed.
Cash on the doorstep still counts. Log it on the app when you're paid so your records stay complete.
Colour, products and tools are deductible. Snap the receipts so your expenses stay complete.
Your booking app already logs appointments and payments. Bring the figures in and your updates stay quick.
On the move between clients, records need to be quick. Clear Books works from your phone and gives HMRC exactly what MTD needs, whenever you're in scope.
Record visits and mileage as you go, watch your gross against the thresholds, and be ready to submit when your wave lands.
