MTD for Self Assessment 2025 Update

Making Tax Digital (MTD) for Self Assessment is set to roll out in phases starting April 2026, and it's crucial for businesses to understand what this means for their tax obligations.

What is MTD for Self Assessment?

MTD for Self Assessment is an HMRC initiative that requires individuals and businesses to keep digital records and file their tax returns using compatible software. This extends the existing MTD for VAT requirements to income tax.

Key Dates and Deadlines

April 2026: Mandatory for self-employed individuals and landlords with income over £50,000
April 2027: Threshold reduces to £30,000
April 2028: Further reductions expected (threshold TBC)

Who Will Be Affected?

MTD for Self Assessment will impact:

Self-employed sole traders
Landlords with property income
Business partnerships (from 2027)
Anyone currently completing a Self Assessment tax return

How to Prepare

Start preparing now to ensure a smooth transition:

Choose Compatible Software: Use software that is listed by HMRC for the service you need. Fylix is completing HMRC's production approval process and is not yet available for live filing.
Digitise Your Records: Move from paper records and spreadsheets to digital accounting
Review Your Processes: Ensure your bookkeeping is up to date and accurate
Understand Quarterly Updates: You'll need to submit quarterly summaries to HMRC

What Changes for Your Tax Return?

Under MTD, you'll need to:

Submit quarterly updates of income and expenses
File an End of Period Statement (EOPS) after each accounting period
Submit a final declaration by the traditional Self Assessment deadline (31 January)

"The move to digital tax filing is designed to make tax administration more efficient and reduce errors. While it requires an initial adjustment, most businesses find that MTD-compatible software actually simplifies their tax management." — Deepak Logavanan, Fylix Founder

How Fylix Can Help

Fylix is building record-keeping tools for MTD workflows. HMRC production approval is in progress, so live filing is not yet available:

Digital income and expense records
Tax calculations for review
Planned bank-feed integration, not currently available
HMRC sandbox workflows while production approval is completed
Internal guidance and deadline reminders

Don't wait until the last minute to prepare for MTD. Start your transition today with Fylix's free trial and ensure you're ready when the deadlines arrive.