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MTD for Income Tax

Your MTD Tax Return: What It Is and What It Involves

Under Making Tax Digital you still submit a tax return once a year. This page explains what goes into it, how it differs from the Self Assessment return you filed before, and what the terminology actually means.

Last updated: July 2026

You still submit a tax return once a year

MTD does not remove the annual tax return. What changes is how you file it and the fact that much of the groundwork is already done by the time you get to it.

Because you have been sending quarterly updates throughout the year, HMRC already holds your business income and expense figures before you start the return. You are confirming and adding to what is already there, rather than entering everything from scratch.

The deadline has not changed. Your tax return is due by 31 January following the end of the tax year, the same date as the old Self Assessment return. The first MTD tax return for the April 2026 cohort covers the 2026/27 tax year and is due by 31 January 2028.

What goes into the tax return

The tax return has two parts.

First, your software retrieves the figures from your quarterly updates and you make any year-end adjustments -- things like capital allowances, accounting adjustments for accruals or prepayments, and loss relief claims. These are adjustments that cannot be made at the quarterly update stage.

Second, you add any other income, reliefs, charges and tax return information not covered in your quarterly updates. HMRC will pre-populate some of this where it already holds the information, but you need to check it and add anything missing. This can include:

  • Employment (PAYE) income
  • Pension income
  • Dividend income
  • Savings interest
  • Capital gains
  • Student loan information
  • High Income Child Benefit Charge
  • Any reliefs or allowances not already captured in your quarterly figures

Once everything is in and correct, you confirm the return is accurate and submit it through your software.

How it differs from the old Self Assessment return

The tax return covers broadly the same ground as the Self Assessment return you filed before. The key differences are how you file it and the state you start from.

Self Assessment return MTD tax return
Filed through HMRC's online portal or paper Submitted through MTD-compatible software
All income and expenses entered at year end Business figures already with HMRC from quarterly updates
One annual filing event Four quarterly updates plus one tax return
Deadline: 31 January Deadline: 31 January (unchanged)

The formal confirmation you make when you submit carries the same legal weight as signing the old Self Assessment return. If you use an accountant, they can prepare the return, but the confirmation step requires your approval before it is submitted.

How to submit

  1. 1
    Make sure the required quarterly updates are submitted

    You cannot complete the tax return until the required quarterly updates for the year are in. For a continuing MTD income source, that normally means all four. Your software will usually prevent submission until this is done.

  2. 2
    Review and adjust your business figures

    Your software pulls in the quarterly totals. Make any year-end accounting adjustments at this point -- capital allowances, accruals, prepayments, loss relief.

  3. 3
    Add other income sources

    Check the information HMRC has pre-populated (employment income, pension income, CIS deductions) and add anything it does not hold -- savings interest, dividends, capital gains.

  4. 4
    Check the tax calculation

    Your software will show you the full tax calculation before you submit. Check it is correct. If something looks wrong, go back and correct the relevant figures before proceeding.

  5. 5
    Confirm and submit

    You declare that the information is correct and complete to the best of your knowledge, then submit through your software. You will receive confirmation once it has gone through.

What does not change: payment dates

MTD changes how and when you report. It does not change when you pay.

Tax payment dates remain:

  • 31 January -- balancing payment for the prior year, plus first payment on account for the current year
  • 31 July -- second payment on account

No tax is due when you send quarterly updates. The bill is only finalised when you submit your tax return.

Penalties for late submission

The soft landing that applies to late quarterly updates in 2026/27 does not cover the tax return. A late tax return attracts a penalty point from the first day it is overdue, with a £200 fine once you reach the four-point threshold.

For a full breakdown of deadlines and penalties, see MTD deadlines and key dates.

Common questions

It covers the same ground -- all your income for the year, reliefs, allowances, and a formal confirmation that the figures are correct. The difference is that it must be filed through your MTD software rather than HMRC's own online portal, and your business income figures are already with HMRC from your quarterly updates, so you are building on those rather than starting from scratch.

Yes, broadly. "Final declaration" is a technical term used in HMRC's developer documentation and has been picked up by accountancy bodies and some third-party guidance. HMRC's own taxpayer-facing guidance on gov.uk consistently calls it "your tax return." The two terms refer to the same year-end submission. If you see "final declaration" in accountancy guidance or your software, it means your MTD tax return.

The End of Period Statement (EOPS) was a per-income-source year-end step in the original MTD design. HMRC permanently removed it following its Small Business Review, before mandatory MTD began. There is no EOPS under the current system. Year-end adjustments and the final submission are dealt with through the MTD tax return process. If any content you have read refers to EOPS as a current requirement, it is out of date.

No. Once you are in MTD, your tax return must be submitted through your MTD-compatible software. You cannot use HMRC's existing Self Assessment portal for the MTD tax return. You can still use your HMRC online account to check your tax position, manage payments, and view correspondence -- but the return itself goes through software.

Your accountant can prepare the return and handle everything up to the point of submission. But you must personally review the figures and confirm they are correct before it is submitted. In practice, your accountant will share a copy of the return with you, you confirm in writing that it is accurate, and they then submit it. The legal responsibility for the information remains yours.

Yes. You can submit as soon as the tax year has ended and the required quarterly updates are in. For a continuing income source, that normally means all four. There is no requirement to wait until January. Submitting early means you know your tax bill sooner, which makes planning payments on account easier.

This page is general guidance, not advice for your own circumstances. It was correct as at the date shown at the top, and tax rules and rates change over time. Please take advice on your own position before acting on anything here.

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