Quick answer:
MTD for Income Tax doesn’t abolish Self Assessment ,it changes how affected people report. Instead of one annual return, in-scope sole traders and landlords keep digital records, send four quarterly updates, and submit a final declaration through software. The annual Self Assessment route continues for those not yet in scope.
What stays the same
- You still report your income and pay tax based on it.
- The final tax position is still settled by 31 January.
- If you’re below the threshold, you can keep using Self Assessment as now.
What changes under MTD
- Records must be digital, kept in compatible software.
- You send quarterly updates instead of relying solely on a year-end return.
- The year-end step becomes a final declaration submitted through your MTD software, not HMRC’s online form.
Who changes, and when
The switch is phased by qualifying income: over £50,000 from April 2026, over £30,000 from April 2027, and over £20,000 from April 2028. Until your threshold reaches you, your existing Self Assessment process continues unchanged. The big change is quarterly updates instead of one return, and you’ll also need compliant digital records.
A side-by-side view
| Self Assessment (current) | MTD for Income Tax | |
| Records | Any format, incl. paper | Digital, in compatible software |
| Frequency | One annual return | Four quarterly updates + final declaration |
| Year-end | SA return via HMRC online | Final declaration via MTD software |
| Who | Most self-employed & landlords | Those over the qualifying-income threshold |
Late filing now works differently, see how the MTD penalty points system applies. For the full transition, see our 2026 MTD guide.
How CleanBooksAI bridges the change
CleanBooksAI handles both the quarterly rhythm and the final declaration in one place, in plain English ,so moving from the old annual habit to the new cadence feels like less work, not more.
