Making Tax Digital Income Tax
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Quarterly updates are not tax returns
During the year, your MTD software sends summaries of self-employment or property income and expenses. These updates keep your records moving, but they are not your final annual tax position.
You still finalise the year
After the tax year, you review and adjust business figures, add other income and gains where relevant, include reliefs or allowances and submit your tax return using compatible software.
Watch the transition year
If you started MTD on 6 April 2026, you still submit your 2025/26 Self Assessment return in the usual way by 31 January 2027. Your MTD reporting relates to the 2026/27 year onward.
Payments remain annual-process based
MTD does not turn your final Income Tax bill into four quarterly bills. The normal tax payment rules continue to apply.
Common misconception
“Once I send four quarterly updates, my Self Assessment is finished.”
Not true.
You must still complete and submit the year-end tax return.
Quarterly updates keep your records moving during the year; the tax return is still the final step that completes your annual position.
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