HMRC Deadlines for Self-Assessment 2025/2026 and the Implementation of MTD for ITSA
As we approach the 2025/2026 tax year, it is crucial for self-employed individuals, business owners, and those with additional income to be aware of the key Self-Assessment deadlines set by HM Revenue and Customs (HMRC). The implementation of Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is also on the horizon, bringing significant changes to the way tax is reported and managed.
Self-Assessment Deadlines for 2025/2026
The tax year 2025/2026 runs from 6 April 2025 to 5 April 2026. Here are the critical deadlines to keep in mind:
- 31 July 2025: Second payment on account for the 2024/25 tax year.
- 5 October 2025: This is the deadline for registering for Self-Assessment if you are newly self-employed or earning income that has not been taxed. It is essential to register by this date to avoid potential penalties and ensure you are set up to submit your tax return on time.
- 31 October 2025: If you prefer to submit a paper tax return, this is your deadline. However, it is worth noting that paper returns are becoming less common, with HMRC encouraging online submissions.
- 30 December 2025: This is an important date if you want HMRC to collect any tax you owe through your wages or pension using your PAYE tax code. To take advantage of this, you need to submit your online tax return by this date and owe less than £3,000
- 31 January 2026: This is the main deadline for the 2025/2026 tax year. By midnight on this date, you must:
o Submit your online Self-Assessment tax return.
o Pay the tax you owe for the 2025/2026 tax year.
It is vital to meet these deadlines to avoid late filing penalties, which start at £100 and can increase significantly over time. And for late payment there are also penalties, with a further increase in the interest on overdue balances to boot.
Planning Ahead
To ensure a smooth Self-Assessment process, consider the following tips:
- Start early: Don’t wait until the last minute to gather your financial information and complete your tax return.
- Keep accurate records: Maintain detailed records of your income and expenses throughout the year.
- Seek professional help if needed: If you are unsure about any aspect of your tax return, get in touch, we might be able to help.
Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA)
The implementation of MTD for ITSA is a significant shift in how self-employed individuals and landlords will manage their tax affairs. Originally scheduled for April 2024, the rollout has been delayed until 2026 allowing businesses and the self-employed more time to prepare.
Key Points to plan for MTD for ITSA:
- Start Date: MTD for ITSA is now set to be introduced from 6th April 2026 for self-employed individuals and landlords with annual business or property income over £50,000. The Chancellor confirmed this date in the October 2024 budget.
- Phased Approach: Those with income between £30,000 and £50,000 will join from 6th April 2027. The government also confirmed that this will be extended to smaller businesses with incomes up to £20,000 by 2029 as confirmed at the October 2024 budget.
- Digital Record Keeping: Under MTD for ITSA, you will need to keep digital records of your income and expenses using MTD-compatible software.
- Quarterly Updates: Instead of an annual tax return, you will need to send HMRC quarterly updates of your income and expenses.
- End of Year Statement: You will need to submit an End of Year Statement to finalise your tax position.
- Final Declaration: This replaces the current Self-Assessment tax return and is used to report any other income, gains, or reliefs.
Preparing for MTD for ITSA
With the implementation date only one tax year away, it is wise to start preparing now:
- Familiarise yourself with digital tools: Start exploring MTD-compatible software options.
- Review your record-keeping: Ensure your financial records are organised and up to date.
- Stay informed: Watch for announcements from HMRC for any updates or changes to the MTD for ITSA timeline and follow our blog posts to learn how they will impact you.
The 2025/2026 tax year brings both familiar Self-Assessment deadlines and the anticipation of significant changes with MTD for ITSA in the next tax year. By staying informed and preparing in advance, you can ensure compliance with HMRC requirements and potentially streamline your tax management processes. This is the time to start adapting your financial management practices. This proactive approach will not only help you meet current Self-Assessment deadlines but also position you well for the digital tax future.
For personalised guidance, consult with Gardner Webb Accounting. We can help you understand the complexities of business taxation, ensure compliance with regulations, and optimise your tax position. Get in touch to find out more about our services for business.