For aesthetic practitioners in business (whether it be as a sole trader, partnership, or limited company) you will soon be moving away from calculating tax annually to a quarterly submission and payment system. Currently, individuals complete an annual tax return and pay Her Majesty’s Revenue and Customs (HMRC) through payments every January and July.
Payments on account are based on the previous year’s income and business profits. This results in a balancing payment (or refund if the profits are subsequently lower) the following January. The UK government is introducing Making Tax Digital (MTD) for income tax (and later corporation tax) which will change the way tax is administered. Whilst the changes are due in 2023, with the effective dates being dependent on the type of entity you trade as, it is important to organise your aesthetic practice now so when MTD is effective, your…
