The MTD Final Declaration is the year end submission that replaces the Self Assessment tax return for people in Making Tax Digital for Income Tax. It confirms your total income, reliefs and tax for the tax year. For 2026/27, it is due by 31 January 2028, along with any tax you owe.
If you have kept digital records and sent four quarterly updates, you may think you are done. You are not: the Final Declaration is the last step, and it is where your tax is finalised.
This is where the MTD Final Declaration comes in.
Making Tax Digital (MTD) for Income Tax is a more consistent approach to reporting income and expenses to HMRC for sole traders and landlords. Quarterly updates are summaries only. They do not replace the year end return.
2026/27 is the first year of MTD for sole traders and landlords with qualifying income over £50,000, so this is their first Final Declaration.
This article covers details about the MTD Final Declaration, who is required to submit it, the information required, the deadlines for doing it and what consequences are there if it is not done on time.
What Is the MTD Final Declaration?
The MTD Final Declaration is your annual tax return under MTD. You send it through your compatible software to confirm your income, reliefs and final Income Tax for the tax year.
The Final Declaration allows you to:
- Review your business income and expenses for the entire tax year.
- Correct or adjust information submitted through quarterly updates.
- Add in other taxable income, such as savings interest and dividends.
- Ensure you claim any tax reliefs and allowances that you are entitled to.
- Check your final total income.
- Work out your final Income Tax.
Think of quarterly updates as progress reports and the Final Declaration as the completed annual assessment.
For example: A landlord with £60,000 rental income sends quarterly updates. They find at the end of the year that some of the property expenses that they are allowed to claim were not recorded. These can be reviewed and included before finalising the annual tax position.
HMRC adds other income it already holds to your return. You still need to check it and add anything missing, such as savings interest or dividends.
Is the Final Declaration the Same as a Self Assessment Tax Return?
In practice, yes. For people in MTD, the Final Declaration takes the place of the SA100 for that tax year.
The traditional Self Assessment tax return allows individuals to report their income, expenses, allowances and tax liabilities annually.
MTD for Income Tax (MTD) changes how you report. Business and property income are now recorded digitally and sent to HMRC in quarterly updates.
However, the annual tax return process does not disappear.
The Final Declaration effectively completes the annual reporting process by bringing together:
- Business and property income.
- Other taxable income.
- Tax reliefs and allowances.
- Adjustments to quarterly figures.
- Final tax calculations.
The important distinction: MTD changes how information is recorded and reported during the year, but taxpayers must still complete an annual tax return.
HMRC explains this in its official guidance:
Using Making Tax Digital for Income Tax – GOV.UK.
Is It the Same as the Fourth Quarterly Update?
No. This is an important distinction.
The fourth quarterly update covers the final reporting period of the tax year. It provides HMRC with the income and expense information recorded during that period.
The Final Declaration goes further.
It involves reviewing the complete year’s financial information, including the figures submitted through all four quarterly updates.
For example:
| Submission | Purpose |
| First quarterly update | Reports income and expenses for 6 April to 5 July |
| Second quarterly update | Reports 6 July to 5 October |
| Third quarterly update | Reports 6 October to 5 January |
| Fourth quarterly update | Reports 6 January to 5 April |
| Final Declaration | Finalises the annual tax position |
Submitting the fourth quarterly update does not mean your tax responsibilities are complete.
Do I Still Need an End of Period Statement (EOPS)?
No. The End of Period Statement has been scrapped. The Final Declaration is now the only year end step for MTD for Income Tax.
Earlier MTD plans had an EOPS for each business before the Final Declaration. The government removed it because it duplicated information. You may still see it in older guides, so check the date on anything you read.
When Is the MTD Final Declaration Due?
The MTD Final Declaration for 2026/27 is due by 31 January 2028.
For the 2026/27 tax year:
- Tax year begins: 6 April 2026.
- Tax year ends: 5 April 2027.
- Final Declaration deadline: 31 January 2028.
Your tax payment is also generally due by 31 January 2028.
It is worth remembering that quarterly updates have separate deadlines.
For the 2026/27 tax year, the standard quarterly update deadlines are:
| Quarterly update | Deadline |
| First | 7 August 2026 |
| Second | 7 November 2026 |
| Third | 7 February 2027 |
| Fourth | 7 May 2027 |
| Final Declaration | 31 January 2028 |
These dates are for standard quarterly periods. If you use calendar quarters, both the periods and the deadlines are different, so check your software for your exact dates.
Can I Submit My Final Declaration Early?
Yes. It is not compulsory to wait until 31 January.
You may file your annual tax return early if you have all the relevant information and you have already checked through your business records.
Submitting early can offer several advantages:
- You’re aware of your tax obligation earlier.
- There is more time to catch up on errors.
- You can plan your cash flow.
- You avoid the pressure of the January deadline.
However, early submission should not mean rushing the reconciliation process.
Ensure all income and expenditure and tax reliefs are taken into account, as well as other taxable income, before finalising the numbers.
Filing early does not change the payment date. Any tax you owe is still due by 31 January 2028.
When Do I Pay the Tax After My Final Declaration?
Submitting your Final Declaration and paying your tax are two separate responsibilities.
For the 2026/27 tax year, the standard payment deadline is 31 January 2028.
Depending on your situation, you may also need to pay payments on account towards your next tax bill.
These payments are generally due on:
- 31 January.
- 31 July.
You should review your previous tax payments and any payments on account when calculating the outstanding amount.
Your first payment on account for 2027/28 may also be due on 31 January 2028, depending on your tax bill.
Who Has to Submit an MTD Final Declaration?
Individuals who are required to use MTD for Income Tax must complete the relevant annual reporting process.
This primarily affects sole traders and landlords whose qualifying income exceeds the applicable threshold.
The rollout is being introduced in stages.
MTD Thresholds: £50,000, £30,000 and £20,000
The government has announced the following implementation timetable:
| Qualifying income | MTD start date | Based on tax return |
| More than £50,000 | 6 April 2026 | 2024/25 |
| More than £30,000 | 6 April 2027 | 2025/26 |
| More than £20,000 | 6 April 2028 | 2026/27 |
Qualifying income is your total turnover from self employment and property, before expenses. HMRC checks it against the tax return you filed for an earlier year, as the table shows.
Turnover from all your self employment and property income is added together.
Practical example:
A sole trader has £38,000 self employment turnover and £15,000 rental income. Combined qualifying income is £53,000, so they are over the £50,000 threshold if that is what their 2024/25 return showed
If the eligibility requirements outlined under the definition of the first MTD implementation group are satisfied, the person is in the first MTD implementation group.
It’s essential to understand the difference between qualifying income and taxable profit. The threshold is based on turnover before business expenses, not on profit.
Do Company Directors Need to Submit One?
Not because of director pay alone. MTD for Income Tax applies to self employment and property income, not to salary or dividends from your own limited company.
MTD for Income Tax primarily applies to qualifying self-employment and property income.
However, a director who also operates a sole trade or receives rental income may fall within the MTD requirements.
For example, someone has qualifying income of £25,000, the rental turnover. That is below £50,000 now, but over £20,000, so they would be in MTD from April 2028 if their 2026/27 return shows it.
What Do You Need to Include in an MTD Final Declaration?
The Final Declaration should give a good indication of your total taxable income for the entire year.
Your software might automatically update information from quarterly updates, but you should still carefully review the figures.
Here are the main areas to consider.
1. Total business income
Include all relevant income from your sole trade or property business.
Check that:
- All sales have been recorded.
- Rental payments are included.
- Other business receipts are accounted for.
- Income has not been duplicated.
2. Allowable business expenses
Review your expenses and make sure they are correctly classified.
Common examples include:
- Office expenses.
- Business travel.
- Advertising and marketing.
- Professional fees.
- Insurance.
- Repairs and maintenance.
- Relevant software subscriptions.
Remember that not every payment made through a business bank account is automatically tax-deductible.
Personal expenses must be excluded, and mixed-use expenses may require an appropriate adjustment.
3. Capital allowances
Certain qualifying purchases may be eligible for capital allowances.
These could include business equipment, machinery and other qualifying assets.
Do not automatically treat the full cost of every asset as an ordinary business expense.
4. Other income
Your annual tax return may need to include income that is not captured in your business records.
Examples include:
- Employment income.
- Pension income.
- Savings interest.
- Dividend income.
- Other taxable income.
5. Tax reliefs and allowances
Review whether you qualify for relevant reliefs.
These may include:
- Personal pension contributions.
- Gift Aid donations.
- Marriage Allowance.
- Other applicable tax reliefs.
6. Property-specific adjustments
Landlords should check:
- Rental income from all properties.
- Allowable repairs and maintenance.
- Property management fees.
- Insurance.
- Mortgage interest tax relief rules.
- Joint ownership arrangements.
Mortgage interest relief for individual residential landlords is generally provided through a basic-rate tax reduction rather than a deduction from rental income.
MTD Final Declaration Checklist
- All four quarterly updates sent
- Income and expenses reconciled to bank statements and invoices
- Missing or duplicated entries corrected
- Personal and mixed use expenses adjusted
- Capital allowances claimed
- Other income checked and added (savings, dividends, employment, pension)
- Reliefs and allowances applied (pension contributions, Gift Aid, Marriage Allowance)
- Property adjustments reviewed (joint ownership, mortgage interest tax reduction)
- Tax calculation checked
- Final Declaration submitted and tax paid by 31 January 2028
How Do You Submit an MTD Final Declaration?
The submission process will generally involve the following steps.
Step 1: Complete your digital records
Ensure that income and expenditure is recorded on MTD compatible software.
Step 2: Review quarterly updates
Make sure all four quarterly updates have been made and information is correct.
Step 3: Reconcile your records
Check that your software records are in line with your bank statements, invoices, receipts etc.
Step 4: Include additional income
Include any other type of income that is not accounted for in your business records.
Step 5: Apply adjustments and reliefs
Consider capital allowances, applicable tax reliefs and other adjustments.
Step 6: Check your tax calculation
Check the estimated tax and make sure all the information is correct.
Step 7: Submit the Final Declaration
Use your compatible software to submit the Final Declaration to HMRC.
Step 8: Pay the outstanding tax
Make payment by the designated deadline.
MTD Final Declaration Example for a Sole Trader and Landlord
Consider two individuals who need to finalise their annual tax position.
Example 1: Sole Trader
James runs a digital marketing consultancy.
His annual figures are:
| Particulars | Amount |
| Business income | £65,000 |
| Allowable expenses | £15,000 |
| Taxable business profit | £50,000 |
During the year, James submitted quarterly updates using compatible software.
At year-end, he discovers that £1,200 of allowable professional expenses were missing.
After reviewing the records, his adjusted profit becomes:
£65,000 – £16,200 = £48,800.
The annual submission should reflect the corrected figures.
Example 2: Landlord
Sarah owns two rental properties. Her property income is £60,000. Allowable expenses are £10,000, so her profit before other adjustments is £50,000. Before finalising her tax position, Sarah reviews mortgage interest, jointly owned property arrangements and other relevant adjustments.
Her Final Declaration should reflect the correct taxable position after applying the relevant property income tax rules.
The lesson: Quarterly reporting helps maintain visibility, but year-end reconciliation is where accuracy becomes especially important.
Can You Amend an MTD Final Declaration After Submitting?
Yes. If you discover an error after submitting your annual tax return, you may be able to amend it.
For example, you may discover that:
- Business income was reported incorrectly.
- An expense was omitted.
- Rental income was duplicated.
- A tax relief was overlooked.
- Other taxable income was not included.
The correction process will depend on the type of error and the applicable HMRC amendment rules.
Yes. You can usually correct a Final Declaration within 12 months of the 31 January deadline. For 2026/27, that is 31 January 2029
You should retain supporting records explaining the correction.
What Happens If You Miss the Final Declaration Deadline?
Missing the annual submission deadline can result in penalties.
MTD for Income Tax uses penalty points. You get one point for each missed deadline for a tax return, and for each missed quarterly update from 2027/28. At 4 points you get a £200 penalty, and another £200 each time you miss a deadline after that. If you are under the threshold, points drop off after 24 months.
The 2026/27 grace period covers quarterly updates only. It does not cover the Final Declaration, so a late one can earn a point. You must also keep digital records and send your quarterly updates before you can submit your return.
Late payment penalties
These are separate from points. For 2026/27, you pay 3% of the tax owed if payment is more than 15 days late (no penalty in your first year if you pay within 30 days), another 3% at day 30, then 10% a year on what remains. Interest also builds from day one. Contact HMRC early if you cannot pay, as a payment plan can pause penalties.
Payments on account are not subject to these late payment penalties.
You can read the official rules here:
Penalties for Making Tax Digital for Income Tax – GOV.UK.
Do You Need an Accountant for Your MTD Final Declaration?
You are not legally required to appoint an accountant simply because you are using MTD.
However, professional support can make the process easier, particularly if you have multiple income sources or complicated financial arrangements.
An accountant can help with:
- Reviewing quarterly updates.
- Checking digital records.
- Identifying allowable expenses.
- Reviewing capital allowances.
- Including additional taxable income.
- Checking tax relief eligibility.
- Preparing and submitting your annual tax return.
- Monitoring payment deadlines.
How MyIVA Can Help
Moving to MTD can seem like a big change, particularly for those who have been using paper records, spreadsheets or annual tax support services.
MyIVA can guide sole traders and landlords through the changes and help them understand their tax obligations.
With professional accounting support, you can get assistance with:
- MTD preparation and digital record-keeping.
- Income and expense reconciliation.
- Quarterly reporting.
- Year-end tax calculations.
- Final Declaration preparation.
- Tax planning and compliance.
The objective is simple: make tax reporting more manageable while helping you remain accurate and compliant.
Get your Final Declaration right first time
Our MTD filing service covers digital records, quarterly updates and your year end return, from £17 + VAT a month, paid annually in advance.
FAQs: Frequently Asked Questions
Is the Self Assessment tax return being abolished?
No. MTD changes the way qualifying taxpayers maintain records and report income during the year. The annual tax return process continues, and for MTD users it is submitted as the Final Declaration.
Do I still need to file an SA100 if I’m in MTD?
No. For the tax years you are in MTD, you submit your tax return through compatible software instead of the SA100.
Has the Autumn Budget 2026 changed anything?
The Autumn Budget extended the penalty point grace period for late quarterly updates to people joining MTD from April 2027. The 2026/27 rules above are unchanged.
Is the Final Declaration the same as the old End of Period Statement?
No. The EOPS has been removed. The Final Declaration now covers your business figures, other income and reliefs in one step.
What if my income drops below the threshold?
You stay in MTD unless HMRC’s exit rules say otherwise. One low income year does not remove you automatically.
Do I need a Final Declaration if I only have dividends or PAYE income?
Not under MTD, because MTD for Income Tax applies to self employment and property income. You may still need to file a normal Self Assessment return.
Can I submit my MTD tax return before 31 January?
Yes. You can submit it earlier once your records and tax calculations are complete.
Can my accountant submit my MTD Final Declaration for me?
Yes. An authorised accountant can manage the reporting and submission process on your behalf using compatible software, once you have authorised them with HMRC.
Conclusion
The MTD Final Declaration is an important part of the transition towards digital tax reporting.
Quarterly updates are a way of giving HMRC regular data on your business activities, but don’t eliminate the need to review and finalise your annual tax position.
Keeping track of the deadlines, keeping good records and monitoring your income and expenses throughout the year will help you to avoid penalties.
If you are a sole trader or landlord, and you need to get ready for MTD, having professional help can make it much easier.
From digital record keeping and quarterly updates to your Final Declaration, MyIVA can help you manage your accounting and tax compliance obligations.
