As we move through 2026, it’s a good time to reflect on the financial and tax changes introduced during 2025 and what they now mean in practice for therapists and psychologists.
One of the most welcome developments last year was HMRC’s move to simplify Self Assessment requirements. The trading income reporting threshold was increased to £3,000, meaning many practitioners with small amounts of private income no longer need to complete a full Self Assessment return. While tax may still be due, this change has reduced unnecessary paperwork and clarified when registration with HMRC is required.
For those who remain within Self Assessment, deadlines and penalties remain unchanged. Online tax returns for the 2024–25 tax year were due by 31 January 2026, and HMRC continues to apply automatic fines for late submissions, even where no tax is owed. HMRC also reported a rise in phishing and scam activity during the last filing season, so caution around emails and text messages remains essential.
Another major theme from 2025 was preparation for Making Tax Digital (MTD) for Income Tax Self Assessment. While the next phase does not apply to everyone immediately, many self-employed therapists will be affected from April 2026 onwards. Digital record-keeping and quarterly submissions will soon become the norm, making reliable bookkeeping systems and software more important than ever.