Final Declaration · 2026/27 guide
Allowances & charges
ONLY£15A MONTHPrepare the personal details behind student loan repayments, charitable giving, Marriage Allowance, Child Benefit charges and voluntary Class 2 National Insurance.
In developmentWho this guide is for
Sole traders and landlords whose annual tax position includes personal reliefs, loan repayments or family-related charges.
Covered in this guide: Student loans, charitable giving (Gift Aid), Marriage Allowance, High Income Child Benefit Charge and voluntary Class 2 National Insurance.
Reconcile student loan repayments already made
Your loan plan, income and repayments through employment affect the annual position. Keep P60 and payslip evidence of deductions so repayments already made can be taken into account. Quarterly business updates do not replace your employer’s payroll deductions or determine the final annual repayment in isolation.
Keep personal reliefs separate from business costs
Gift Aid donations are not automatically business expenses. Retain donation dates and amounts, and check that you paid enough UK Income Tax or Capital Gains Tax to cover the charity’s claim. Further relief may be available for higher-rate taxpayers. Marriage Allowance has its own eligibility conditions and should not be assumed to apply to every couple.
Review family income and your NI record
The High Income Child Benefit Charge depends on adjusted net income and the relevant family circumstances, rather than business turnover alone. Check who is responsible for any charge. Separately, Class 2 National Insurance is not a blanket compulsory bill for every sole trader: some people are treated as having paid it, while others may choose voluntary payments to protect their record.
Check the eligibility rules
Use HMRC’s guidance on Marriage Allowance and the High Income Child Benefit Charge to check the conditions that apply to your household.
Your questions, answered
Are all these amounts collected only at year end?
No. Student loan deductions and some tax collections can occur through PAYE during the year. The annual review reconciles the relevant income, reliefs, charges and amounts already collected.
Does Marriage Allowance apply automatically?
Do not assume so. Check HMRC’s eligibility and application guidance, including both partners’ income circumstances. Avona’s annual Marriage Allowance capability is in development.
Must every sole trader pay Class 2 National Insurance?
No. Your profits and circumstances affect whether contributions are treated as paid or voluntary payments may be appropriate. Check your record and HMRC’s current rules before deciding.
The other parts of your annual return
Employment & PAYE
A job alongside your business? Understand how employment pay, tax already deducted and benefits fit into your annual MTD tax return.
Explore the guide In developmentSavings & investments
Understand how bank interest and dividends fit alongside your business income, including allowances and overseas investment records.
Explore the guide In developmentPensions & retirement
Keep pension receipts separate from rental income, and understand where private pension contributions and tax relief enter your annual review.
Explore the guide Property quarterly support readyProperty & overseas income
Bring UK and overseas rental records into focus, while keeping foreign investment income and annual tax relief claims distinct.
Explore the guide In developmentCapital Gains Tax
Understand the difference between income and asset disposals, and why some property gains need action before your annual return.
Explore the guideGet your records ready for the year ahead.
Use Avona for the quarterly features available now. If your annual return includes other income, gains or reliefs, check that the features you need are available before choosing your filing route.