Welcome to the MYCO Works Blog

Last month, MYCO took part in its first Business Show at ExCel London — a chance to step out from behind the desk and meet our community face-to-face. Between the ridiculous amounts of coffee consumed and the steady stream of conversations, it was an exciting chance to showcase what we do and connect with people who share our passion for smarter support. 

There are many elements of preparing for a Business Show that require a great deal of planning. For example, we definitely did not just have a buzz wire laying around beforehand… However, this only pushed us to get more creative than ever!  

When we weren’t timing visitors to see who might win the challenge to win a year’s free Virtual Business Plus with the fastest completion time, we had a chance to explore the rest of the event. We spoke with current clients and partners and reached out to potential future ones. We even caught some glimpses of a few very interesting keynote talks.

When your operation at its core is a Virtual Office Address service, it is a welcome change to enjoy so much face-to-face interaction. One moment we will never forget is seeing our addresses printed on clients’ business cards – and having them handed to us in person at the event! If you got a chance to see us, thank you for stopping by and if not, don’t worry, we will keep you posted about our next business show appearance.  

Let us know where you want to see us in the future! 

With the rollout of Making Tax Digital (MTD) for Income Tax beginning in April 2026, conversation is naturally shifting from “What is it?” to “How will this actually help me manage my finances better?” For company directors, landlords, and business owners with multiple income streams, the answer may be more positive than expected. 

While the perception is that MTD introduces “more admin”, the reality – especially when using digital tools – is quite different. With the ease of software such as Xero’s, MTD can be seen as an opportunity to reduce stress and ultimately take better control of your financial position throughout the year. 

Here’s what this means in practice, and why early adoption is the smartest choice directors can make. 

Why The Move To Digital Record-Keeping Benefits Directors 

MTD for Income Tax will require individuals with qualifying income to keep digital records and submit quarterly updates. But instead of seeing these updates as extra tasks, think of them as quick financial check-ins, as suggested by Xero. 

For directors juggling PAYE salary, dividends, rental income, and side ventures, this shift can be hugely beneficial. 

It means: 

• No more scrambling for receipts in January 
• No more guesswork about your tax bill 
• No more last-minute budget reshuffles to cover under-estimated liabilities 

When everything is recorded digitally throughout the year, your final tax declaration becomes simple. 

Real-time Tax Calculations = Real-Time Financial Confidence 

One of the strongest messages in Xero’s MTD guidance is the benefit of seeing your estimated tax liability as you go. 

For directors, this means better planning around: 

• Dividend timing 
• Cashflow management 
• Setting aside the correct tax amounts 
• Monitoring income streams from rental, freelance, CIC, or partnership activities 
• Avoiding HMRC penalties due to miscalculations or last-minute errors 

This real-time clarity is especially valuable for anyone with fluctuating income. 

Going Digital Reduces Admin, Rather Than Adding To It 

Digital record-keeping automates many tasks that traditionally eat up time: 

• Bank transactions flow in automatically 
• Receipts can be captured instantly 
• Records are stored securely 
• Errors are flagged sooner 
• Data is ready for quarterly updates without manual collation 

Many business owners mistakenly assume that quarterly updates mean more paperwork. In reality, if records are digital, these updates take only a few minutes. 

A Better Way To Manage Property and Side Income 

For directors with rental properties or secondary income streams, the benefits are even clearer. 

Digital tools help you: 

• Track property performance throughout the year 
• See which units are profitable 
• Identify rising costs early 
• Plan repairs and maintenance more strategically 
• Keep clean, compliant records for MTD submissions 
• Landlords can even view their property portfolio in real time, offering a much clearer financial picture than traditional spreadsheets. 

A New Option For Simple Income: Xero Simple 

While many directors will already use full-featured accounting software for their company accounts, Xero also offers a lightweight, budget-friendly plan – Xero Simple – designed specifically for individuals with non-VAT income such as rental or small sole-trade activity. 

It’s an easy way to keep your personal records digital without needing the complexity of full business software. This is particularly useful for directors who want to keep company and personal finances separate. 

The Three-Step Action Plan To Get Ahead Of MTD 

Xero breaks MTD readiness into three simple steps that apply to directors, landlords, and side-business owners: 

1. Know your mandatory start date 

Check your combined income from property and/or self-employed work. 
This determines whether you join MTD in 2026, 2027, or 2028. 

2. Choose your software and start keeping records now 

Starting early builds good habits and avoids the stress of switching at the last minute. 

3. Sign up with HMRC when ready 

Registration for MTD for Income Tax isn’t automatic – you or your advisor will need to complete this step. 

The Bottom Line: MTD Is About Clarity, Not Complexity

The shift to MTD for Income Tax is significant, but it doesn’t need to be overwhelming. With the right system, it becomes a way to: 

• Reduce tax-time stress 
• Improve visibility over your entire financial picture 
• Avoid unexpected tax bills 
• Manage personal and rental income more effectively 
• Build better financial habits year-round 

Early adopters will have the smoothest transition – and the greatest sense of control. 

This article was written in partnership with Xero, all clients of MYCO Works that are new to Xero will receive an exclusive discount to their services for a limited time only. 

Article by GoSimpleTax

Whether you’re buying gifts for clients, organising a festive get-together or decorating your workspace, many self-employed people wonder, “Can I claim this as a business expense?”

Here, we clear up fact from fiction, giving you a breakdown of what’s allowable and what isn’t so you can keep your costs down without running into trouble with HMRC.

Gifts For Customers and Suppliers

Technically, yes, you claim for these but only in limited circumstances. For example, they must cost £50 or less per recipient, carry a clear business advertisement and not be food, drink, tobacco or vouchers.

So, in short, you can claim for the likes of branded mugs, calendars and stationery but chocolates, wine, hampers and gift vouchers cannot be claimed for.

Staff Parties

If you’re a sole trader with employees, the rules are similar to those for limited companies. This means you can claim if the event is annual, costs £150 or less per head and is open to all employees. This cost must cover everything including food, drink, entertainment and venue hire.

You cannot claim a party if you work alone with no staff. This is because HMRC doesn’t treat sole traders as their own employees.

Christmas Decorations

Yes, Christmas decorations can be claimed for if they’re for business premises. But, if you work from home, HMRC views these decorations as dual-based so they aren’t allowable.

Meals Out With Clients

Unfortunately, client entertainment is never tax-deductible for the self-employed. This includes festive lunches, drinks and events – even if it’s a genuine business meeting.

Christmas Charity Donations

If donations are made to UK-registered charities for business purposes, they are allowable. Personal donations are not a business expense but it may qualify for Gift Aid.

Staff Gifts

Unlike client and supplier gifts, you can claim for staff gifts. However, it must cost £50 or less, not be cash or a cash voucher, not be given to reward performance and it must not be contractually required. This means you can gift staff members the likes of chocolate, a bottle of wine or a Christmas hamper under £50.

What About Christmas Bonuses?

Unfortunately, if you receive or give yourself a Christmas cash bonus, it is not deemed as a trivial benefit. This means it must be:

• Processed through PAYE, and
• Subject to tax and National Insurance in the same way as normal earnings

Top Tax Tips This Christmas

As with any expense, you should record what was purchased, why it was purchased, who it was for and keep any receipts. This can make your end of year review and Self Assessment process much easier.

Plus, don’t forget to always ask: is this solely for business purposes? If you answer no, or even maybe, HMRC is probably going to disallow it.

About GoSimpleTax

Income, Expenses and tax submission all in one.

GoSimpleTax will provide you with tips that could save you money on allowances and expenses you might have missed.

The software submits directly to HMRC and is the solution for freelancers, the self-employed, sole traders and anyone with income outside of PAYE to file their self-assessment giving hints and tips on savings along the way.

Get started with GoSimpleTax today, it’s free to try.