Chapter 7

Self-employed tax and Making Tax Digital

Learn about upcoming changes to the way self-employed people and landlords manage their income tax payments.

Self-employed tax and Making Tax Digital

Did you know that self-employed tax is going digital?

As part of the government’s plan to digitalise the UK, HMRC has announced changes to the way the self-employed and landlords do their self assessment for income tax. Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) comes into effect in April 2024.

To comply with the new MTD for ITSA rules, self-employed people and landlords earning over £10,000 a year will need to use compatible software to keep digital records and submit returns to HMRC.

Instead of one annual self assessment return, you will need to submit quarterly updates. In addition, you’ll have to submit an End of Period Statement (EOPS) and a Final Declaration.

Find out more about how self assessment is changing and learn everything you need to know about Making Tax Digital for the self-employed. Or, to learn more about Making Tax Digital for ITSA, visit our MTD for ITSA resource hub.

Start using Xero for free

Access all Xero features for 30 days, then decide which plan best suits your business.

  • Included
    Safe and secure
  • Included
    Cancel any time
  • Included
    24/7 online support