MTD for Income Tax changes how Self Assessment is done; it does not remove the annual return. You keep digital records and send updates during the year, then finalise the tax position through compatible software. A return for an earlier year can still follow the old process.
If you only needed the overview of MTD itself, see Making Tax Digital explained. This page answers one confusion: “If I’m sending quarterly updates, do I still do a return?”
What stays the same
Under MTD for Income Tax you still:
- Submit one tax return every tax year
- Pay your tax bill on the same broad payment dates you know from Self Assessment
GOV.UK is explicit that both still need to be done by 31 January following the end of the tax year (online). Making Tax Digital does not invent a new “instead of January” filing system that cancels the return.
What is new
On top of that year-end process you (or your agent) must:
- keep digital records of self-employment and/or property income and expenses in compatible software
- send quarterly updates (category summaries built from those records, not mini tax returns)
- use that software route to finish adjustments, other income and the tax return itself for MTD years
Quarterly updates are cumulative totals for the year so far. They do not finalise your tax. HMRC still uses the year-end submission to generate your Self Assessment bill. Details of what those updates contain sit in MTD quarterly updates explained.
How the year actually looks
Take someone mandated from April 2026 with standard update periods. During 2026 to 2027 they send quarterly updates (typical send-by dates include 7 August, 7 November, 7 February and 7 May). After the year ends they still prepare and submit the tax return through compatible software. For that first MTD year, that return is due by 31 January 2028. Payment rules remain Self Assessment payment rules; GOV.UK says MTD does not change how you pay tax or the payment due dates.
For the tax year before you start MTD, you still submit a normal Self Assessment return in the way you always have.
Where people get tripped up
- Treating a quarterly update as “I’ve filed for the year”
- Assuming predicted tax figures in software are the final bill
- Forgetting other income (savings, dividends, partnership share) still has to sit on the return
- Mixing MTD years with classic Self Assessment years and expecting the same filing path
TaxSimba is accountant-led support for Making Tax Digital and Self Assessment, not DIY tax software that “replaces” HMRC’s process. If MTD applies and you want the quarterly rhythm handled with an accountant, start at the Making Tax Digital service. If you mainly need a classic Self Assessment return prepared from your documents, use the Self Assessment service.
Track the earlier return separately
Illustrative preparation example.
Your current MTD records are up to date, but your earlier annual return is still awaiting a P60. Keep that return in the tracker until it is actually submitted. Completing updates for the new year does not report the earlier year’s employment figures.
Check: Which annual return remains open despite the current updates being complete?
| Check | Practical action |
|---|---|
| Which tax year are you working on? | Separate the pre-MTD return from the current MTD records and updates. |
| What has actually been submitted? | Track quarterly acknowledgements and the annual return confirmation independently. |
| What is payable and when? | Check the HMRC statement; quarterly reporting does not create routine quarterly Income Tax payments. |
Are four updates enough to finish the tax year?
No. Year-end adjustments, other taxable income, reliefs and the annual return still need to be completed through the appropriate software route.
Does a tax estimate mean the final bill is agreed?
No. An in-year estimate can change when the complete annual information is included. Use the final calculation and HMRC account when checking liability and payment.
Download a checklist for this guide
- Create separate folders for each tax year.
- List quarterly submission evidence.
- List annual return tasks and missing information.
- Record other income and reliefs for year-end.
- Check filing and payment dates separately.