Self-employed tax and Making Tax Digital
Learn about upcoming changes to the way self-employed people and landlords manage their income tax payments.
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 (MTD for IT) comes into effect from April 2026.
First, for self-employed people and landlords earning over £50,000 a year, who’ll need to use compatible software to keep digital records and submit returns to HMRC. Then, those earning above £30,000 will need to follow MTD for IT rules from 2027.
Instead of one annual self assessment return, you will need to submit quarterly updates 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 IT, visit our MTD for IT resource hub.
Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
The ultimate guide to self-employed tax
Our expert guide tells you everything you need to know about paying tax to HMRC when you’re self-employed, including tackling MTD for IT
Start using Xero for free
Access Xero features for 30 days, then decide which plan best suits your business.