Does My Tax Return Have to Be Digital

Diploma in Professional Accounting
Diploma for Financial Advisers
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Yes, your tax return must be filed digitally if you are subject to Making Tax Digital (MTD). For all VAT-registered businesses, this is already mandatory. For self-employed individuals and landlords, MTD for Income Tax (requiring digital records and quarterly submissions) begins in April 2026 for incomes over £50,000 and in April 2027 for incomes over £30,000.

Making Tax Digital is a UK Government initiative to make reporting income, expenses, VAT, and other taxes easier and more accurate by using digital tools.

When do I have to use digital for Self Assessment (tax returns)?

If you’re self-employed or a landlord, these are the rules from GOV.UK:

Date from	Gross income from self-employment + property	Requirement
From 6 April 2026	Over £50,000	Must use MTD for Income Tax – digital records + quarterly updates + digital return via software.
From 6 April 2027	Over £30,000	Same requirement moves to this lower threshold.
From 6 April 2028	Over £20,000	Will apply if your income is above this.

If your income is below the threshold, you don’t have to use digital and can carry on with paper Self Assessment as before. But you can choose to use digital early if you prefer.

What Does “Digital” Mean Under MTD?

If you’re in the scope of MTD, you must:

• Keep records digitally using compatible software, or spreadsheets/apps that meet HMRC’s rules
• Send quarterly updates to HMRC of your income and expenses
• At the end of the tax year, submit a final digital return that takes into account those quarterly updates

This is different from the current Self Assessment system where you only file once a year.

Are There Exemptions or Exceptions?

Yes, some people may be exempt or can apply for exemption for reasons like:

• Their income is below the threshold
• Reasonable excuse for digital requirements (such as serious disability or lack of internet access)

Gov.uk provides guidance on who can be exempt from MTD requirements.

What Should You Do Now?

1. Check your income – Calculate if your income from self-employment plus property is over the thresholds for coming years
2. Start preparing – If yes, begin finding compatible software and organising digital record keeping
3. Watch for HMRC letters – HMRC will notify people who must start using MTD
4. Get help early – Don’t wait until the deadline to understand the new system

You can find MTD-compatible software options on the official gov.uk software list.

Current Self Assessment Rules

For now, if you’re not affected by MTD yet, the current Self Assessment rules still apply:

• Online filing is required for most people
• Paper returns are only available in very limited circumstances (mainly those over 70 or without internet access)
• Deadline remains 31st January each year

Key Takeaways

Does my tax return have to be digital? It depends:

• For most people now – yes, Self Assessment must be filed online
• For self-employed/landlords with higher incomes – MTD digital requirements are coming in phases from 2026
• If your income is below MTD thresholds – you can continue with current Self Assessment methods
• Preparation is key – start getting ready now if MTD will affect you

For the most up-to-date information about Making Tax Digital and Self Assessment requirements, always check the official guidance at gov.uk/guidance/making-tax-digital-for-income-tax.

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