Making Tax Digital for Self Assessment: What’s Changing, Who It Affects, and What You Need to Do Now

Big changes are coming to the way self-employed individuals and landlords file their Self Assessment tax returns in the UK.

Under the government’s Making Tax Digital (MTD) programme, millions of taxpayers will soon be required to keep digital records and submit updates to HM Revenue & Customs throughout the year — instead of filing just one tax return annually.

If you’re self-employed, a landlord, or both, here’s everything you need to know about what’s changing, when it starts, and how to prepare.

What Is Making Tax Digital for Self Assessment?

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a new system that replaces the traditional annual Self Assessment tax return for qualifying taxpayers.

Instead of submitting one return per year, you’ll be required to:

• Keep digital records of income and expenses

• Submit quarterly updates to HMRC using approved software

• Send an End of Period Statement (EOPS) to confirm your figures

• Submit a Final Declaration to confirm all your taxable income

The aim is to improve accuracy, reduce errors, and give taxpayers a clearer picture of their tax position throughout the year.

When Do the Changes Start?

MTD for Self Assessment will be introduced in phases:

📅 April 2026

You must join if your combined self-employment and/or property income is over £50,000 per year

📅 April 2027

You must join if your combined income is over £30,000 per year

HMRC has confirmed that partnerships and taxpayers below £30,000 will be brought in at a later date.

What Income Counts Toward the Threshold?

The threshold is based on your gross annual income, not profit.

It includes:

• Self-employment income

• Rental income from UK or overseas property

If you have both, they are added together to determine whether you meet the threshold.

Example:

• Self-employed income: £35,000

• Rental income: £20,000

• Total: £55,000 → You must comply from April 2026

What Will You Need to Do Under MTD?

1. Keep Digital Records

You’ll need to record all income and expenses in MTD-compatible software such as:

• Xero

• QuickBooks

• FreeAgent

• Other HMRC-approved platforms

Spreadsheets alone won’t be enough unless they’re connected to approved bridging software.

2. Submit Quarterly Updates

You’ll send a summary of your income and expenses to HMRC every three months. These are not tax bills, just progress reports.

There are four submission periods each year:

• Quarter 1: April – July

• Quarter 2: July – October

• Quarter 3: October – January

• Quarter 4: January – April

3. End of Period Statement (EOPS)

This replaces the “final accounts” stage. You’ll confirm your business or property income and apply any accounting adjustments.

4. Final Declaration

This is similar to your current Self Assessment return. You’ll confirm:

• All income sources

• Claims for reliefs and allowances

• Your final tax position

Only after this step will your official tax bill be calculated.

What Stays the Same?

While reporting is changing, payment deadlines are not.

You’ll still pay tax:

• 31 January (main payment + first payment on account)

• 31 July (second payment on account, if applicable)

Who Is Exempt?

You may be exempt if:

• You don’t meet the income thresholds

• You are digitally excluded (due to age, disability, or location)

• Your business structure isn’t yet included (e.g. some partnerships)

HMRC will review exemption claims individually.

Why You Should Prepare Now

Even if you don’t fall into the first phase, preparing early will save time, money, and stress later.

Early benefits include:

• Better cash flow forecasting

• Fewer surprises at tax time

• Cleaner financial records

• Reduced risk of penalties

How We Help

At Submit My Accounts, we help self-employed individuals and landlords:

• Set up MTD-compatible accounting software

• Automate record-keeping

• Manage quarterly submissions

• Handle Final Declarations

• Stay fully compliant with HMRC

We make the process simple, so you can focus on running your business — not chasing deadlines.

Key Takeaways

✔ MTD for Self Assessment starts in April 2026 for incomes over £50,000✔ Expands in April 2027 for incomes over £30,000✔ Quarterly digital reporting becomes mandatory✔ Annual tax payments stay the same✔ Preparation now prevents problems later

Need Help Getting Ready?

If you’re unsure whether you’ll be affected — or want help setting up compliant systems —

get in touch today.

We’ll review your situation and create a simple, stress-free plan to keep you compliant and in control.