Guides › MTD vs Self Assessment 2026-27: Who Is Affected?
MTD vs Self Assessment 2026-27: Who Is Affected?
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Not tax advice. Information only. Check GOV.UK or a qualified adviser for your own situation. Dates and rules were last checked against GOV.UK on 17 October 2026 and can change.
Short answer: Making Tax Digital (MTD) for Income Tax doesn't remove your 2025 to 2026 Self Assessment return. GOV.UK says you still need to submit a Self Assessment return for the tax year before you start using MTD for Income Tax.
Who has to use MTD, and when (GOV.UK)
| Qualifying income in the year | Threshold | MTD from |
|---|---|---|
| 2024 to 2025 | more than £50,000 | 6 April 2026 |
| 2025 to 2026 | more than £30,000 | 6 April 2027 |
| 2026 to 2027 | more than £20,000 | 6 April 2028 |
Qualifying income is gross self-employment and property income before expenses. Employment income, dividends and pensions don't count. See our MTD guide (separate section).
What changes in 2026-27 if you're already in MTD
- From September 2026, GOV.UK says HMRC is signing up people who needed to use MTD and haven't signed up.
- HMRC says it won't apply penalty points for late quarterly updates in 2026 to 2027. Penalties for late returns and late payments still apply (MTD penalties).
- Late-payment penalty rules for people in MTD differ from the current ones described on our penalties page; for the 2025 to 2026 return, GOV.UK's MTD penalties page says current penalties apply to previous tax years.
What to do now
- Work out whether MTD applies to you (GOV.UK's tool).
- File your 2025-26 return by 31 January 2027.
- If MTD applies, choose compatible software.
FAQ
I earn £35,000 from self-employment: do I need MTD in April 2027? On the figures above, qualifying income over £30,000 for 2025 to 2026 means MTD from 6 April 2027; HMRC assesses it from your return.
Is MTD software the same as filing software? Not necessarily; see GOV.UK's software page.
What we could not verify
- Your qualifying income; HMRC and the GOV.UK tool decide.
- Any change to dates after 17 October 2026.
Sources (GOV.UK)
- GOV.UK, Find out if and when you need to use MTD for Income Tax (updated 26 March 2026) — https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax (read 17 October 2026)
- GOV.UK, Sign up for MTD for Income Tax (updated 13 October 2026) — https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax (read 17 October 2026)
- GOV.UK, Penalties for MTD for Income Tax (updated 30 March 2026) — https://www.gov.uk/guidance/penalties-for-making-tax-digital-for-income-tax (read 17 October 2026)
- GOV.UK, Self Assessment tax returns: Deadlines — https://www.gov.uk/self-assessment-tax-returns/deadlines (read 17 October 2026)
Deadlines calendar → Penalty estimator →
Not tax advice. See the disclosure.