Is Self Assessment Ending? What Making Tax Digital Actually Changes
Last updated: 19 February 2026
One of the questions I hear most often from clients at Jack Ross is: “Is Self Assessment being scrapped?” The short answer is no. Self Assessment is not ending. But I understand the confusion — HMRC’s rollout of Making Tax Digital for Income Tax has created genuine uncertainty about what is changing and what is staying the same. This article sets the record straight.
The short answer: Self Assessment is NOT ending
Self Assessment continues. It is not being abolished, replaced, or phased out. HMRC has been clear on this point, even if the messaging has not always been straightforward.
Here is what is actually happening:
- Self Assessment continues for everyone not mandated by MTD. If your qualifying income is below the MTD thresholds, you carry on filing your annual Self Assessment return exactly as you do now.
- Even under MTD, you still file a Final Declaration — which is essentially your tax return by another name. It confirms your income, claims reliefs, and finalises your tax liability. You can read more about how the Final Declaration works.
- MTD changes how you report, not whether you report. You still report income to HMRC. You still pay tax. The mechanism shifts from one annual return to quarterly digital updates plus that Final Declaration.
- Self Assessment remains for employees with untaxed income, company directors, CIS subcontractors, and higher earners. If your only obligation to HMRC is through Self Assessment for non-trading income, MTD for Income Tax does not currently apply to you.
What is actually changing?
Making Tax Digital for Income Tax changes the reporting process for sole traders and landlords whose qualifying income exceeds certain thresholds. Qualifying income means your gross self-employment income plus gross UK property income — not profit. If you are unsure whether you are affected, I have written a detailed guide on what Making Tax Digital is and how it works.
The key changes are:
- Annual Self Assessment return becomes quarterly digital updates plus a Final Declaration. Instead of filing once a year, you submit summary income and expenses data four times a year through MTD-compatible software, then file a Final Declaration by 31 January following the end of the tax year.
- Paper records become digital records. You must keep your business records digitally, using software that connects to HMRC via their API.
- Once-a-year filing becomes five submissions a year. Four quarterly updates (due 7 August, 7 November, 7 February, and 7 May) plus the Final Declaration.
- The tax calculation itself does not change. Your income tax rates, bands, and allowances remain identical. MTD is a reporting change, not a tax change.
If you have never filed a quarterly update before, my guide on your first quarterly update walks through exactly what to expect.
What stays the same?
This is the part that reassures most of my clients. A great deal of the tax system is completely unaffected by MTD:
- Tax rates, allowances, and reliefs: unchanged. The personal allowance, basic rate band, trading allowance, and all other reliefs work exactly as before.
- Payment dates: still 31 January and 31 July for payments on account. MTD does not change when you pay — only when you report.
- Your tax code: unaffected. PAYE codes are a separate system entirely.
- PAYE for employed income: unaffected. If you are employed and also self-employed, your employment income continues through PAYE as normal. Only the self-employment and property income reporting shifts to MTD (if you meet the thresholds).
- Self Assessment for non-MTD income: continues as normal. If you have income types that are not covered by MTD — such as capital gains, foreign income, or trust income — those continue to be reported through Self Assessment.
Who still uses Self Assessment after April 2026?
Plenty of people. MTD for Income Tax is being introduced in phases, and large groups remain on Self Assessment indefinitely:
- Anyone with qualifying income below £20,000 — until further notice, these taxpayers remain on Self Assessment. HMRC has announced a Phase 3 threshold of £20,000 or more from 6 April 2028, but anyone below that figure continues with annual returns.
- Partnerships — MTD for partnerships has been deferred with no start date set.
- Corporation Tax — there is no mandatory MTD start date for Corporation Tax. None has been announced.
- People with only employment income plus small untaxed income — for example, someone who earns a salary and receives a small amount of bank interest. They file Self Assessment as normal.
- People who are exempt from MTD — including foster carers, those without a National Insurance number, digitally excluded individuals, and those with Power of Attorney or Court of Protection appointees. You can check who is exempt from MTD in my full guide.
The Final Declaration — your new “tax return”
If you do fall within MTD, the Final Declaration is the closest equivalent to the Self Assessment return you currently file. Here is what you need to know:
- It replaces the annual Self Assessment return for your self-employment and property income.
- It is due by 31 January following the end of the tax year — the same deadline you are used to.
- It confirms your total income, claims reliefs, and finalises your tax liability for the year.
- It is filed through your MTD-compatible software, not through the HMRC Self Assessment online portal.
In practical terms, the Final Declaration asks you to review the figures you submitted across your four quarterly updates, make any adjustments, add any additional income or relief claims, and confirm everything is correct. It is a tax return — HMRC simply calls it something different.
Worked example — the transition year
Rebecca is a sole trader earning £62,000 a year in gross self-employment income. Here is how her reporting obligations change across the transition:
Tax year 2025/26 (the last pure SA year): Rebecca files her 2025/26 Self Assessment return by 31 January 2027 as normal. Nothing changes for this year.
Tax year 2026/27 (the first MTD year for >£50,000): From 6 April 2026, Rebecca starts submitting quarterly MTD updates. For 2026/27, she submits four quarterly updates plus a Final Declaration instead of a Self Assessment return. She does not file a separate SA return for her self-employment income — the quarterly updates and Final Declaration replace it.
Here is how this looks for each income group:
| Qualifying income | 2025/26 tax year | 2026/27 tax year | 2027/28 tax year | 2028/29 tax year |
|---|---|---|---|---|
| Over £50,000 | Self Assessment | MTD (quarterly + Final Declaration) | MTD | MTD |
| Over £30,000 | Self Assessment | Self Assessment | MTD (quarterly + Final Declaration) | MTD |
| £20,000 or more | Self Assessment | Self Assessment | Self Assessment | MTD (quarterly + Final Declaration) |
| Below £20,000 | Self Assessment | Self Assessment | Self Assessment | Self Assessment |
| Partnerships | Self Assessment | Self Assessment | Self Assessment | Self Assessment (deferred) |
Note that during the transition year (2026/27 for Rebecca), she may need to file a 2025/26 SA return and start her 2026/27 quarterly updates in the same calendar period. This overlap is normal and expected.
Frequently asked questions
Will I still get a Self Assessment tax bill?
Yes. Whether you report through Self Assessment or through MTD quarterly updates and a Final Declaration, you still receive a tax calculation and owe the same amount of tax. MTD does not change how much tax you pay — only how you report your income to HMRC.
Do I need to file a 2025/26 SA return AND start MTD?
If your qualifying income is over £50,000, yes. Your 2025/26 Self Assessment return is due by 31 January 2027. Your first MTD quarterly update for 2026/27 (covering 6 April to 5 July 2026) is due by 7 August 2026. Both obligations run in parallel during this transition period.
What about payments on account — do they change?
No. Payments on account remain on the same schedule: 31 January and 31 July. MTD does not alter when or how you pay your tax — it only changes how you report your income throughout the year.
Can I still use the HMRC Self Assessment online portal?
If you are not mandated for MTD, yes — you continue using the Self Assessment portal as normal. If you are within MTD, your quarterly updates and Final Declaration are submitted through MTD-compatible software instead. However, you may still need the HMRC portal for other tax matters not covered by MTD.
If I am on MTD, do I still need a UTR number?
Yes. Your Unique Taxpayer Reference remains essential. MTD does not replace your UTR — you will need it to sign up for MTD and to link your software to HMRC. Do not lose it.
For more answers, see my full MTD FAQ.
