Self Assessment

Who Needs Self Assessment?

• Sole traders and self-employed individuals
• Company directors with dividend or additional income
• Landlords with rental income
• Contractors and freelancers
• Anyone with untaxed income (investments, foreign income, crypto gains)

Making Tax Digital for Income Tax: What’s Changing, and When

HMRC is phasing out the annual paper-style tax return for sole traders and landlords above certain income levels, replacing it with digital record-keeping and quarterly updates through MTD-compatible software. The rollout is staged by income:

• From 6 April 2026 — mandatory if your gross self-employment and/or property income was over £50,000 in the 2024-25 tax year
• From 6 April 2027 — threshold drops to £30,000
• From 6 April 2028 — threshold drops to £20,000

Once you’re in scope, you’ll need to keep digital records and submit a quarterly update to HMRC every three months for each self-employment or property business, followed by a final declaration after the tax year ends — replacing the single annual submission most people know today. We set this up using Xero, so quarterly updates become a five-minute check rather than a new admin burden.

What’s Included

• Preparation and filing of your self assessment tax return under the current rules
• Confirmation of whether, and when, MTD for Income Tax applies to you
• MTD-compatible digital record-keeping set up through Xero
• Preparation and submission of quarterly updates once you’re in scope
• Your year-end final declaration, replacing the traditional tax return submission
• Review of every allowance and relief you’re entitled to, whichever regime applies

Why Businesses Choose LEBS for Self Assessment & MTD

We don’t just fill in boxes. Every return is reviewed by a qualified accountant before submission, and because we’re already a cloud-first, Xero-based practice, moving you onto MTD for Income Tax is a natural extension of how we work — not a system overhaul you have to manage yourself.

Frequently Asked Questions

When is the self assessment deadline?

Online returns must be filed by 31 January following the end of the tax year, with any tax owed due the same date. Under MTD, your year-end final declaration follows the same 31 January deadline. We start early to avoid last-minute penalties either way.

Do I need to worry about MTD for Income Tax yet?

Only if your gross self-employment and/or property income was over £50,000 in the 2024-25 tax year — that group must comply from 6 April 2026. The threshold falls to £30,000 in April 2027 and £20,000 in April 2028, so most sole traders and landlords will eventually be brought in. We check your position and tell you exactly when it applies to you.

What happens if I miss a quarterly update or file late?

HMRC is introducing a points-based penalty system for MTD — you get a penalty point for each missed submission, and a £200 fixed penalty once you reach 4 points. If you’re behind on filing under the current rules, we can also help you catch up and manage HMRC correspondence.