Tax Returns for Self Employed in 2026: What's Changed and How to File Before the Deadline
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- 4 min read
If you are self-employed, the start of a new year usually brings one thing to mind: the tax return deadline. However, as we move through 2026, the way you handle your taxes is undergoing the biggest shift in a generation.
While the core goal remains the same: reporting your income and paying what you owe: the rules around how and when you report that data are changing. Between the standard 2025/26 Self Assessment and the roll-out of Making Tax Digital (MTD), staying organized has never been more important.
In this guide, we’ll break down exactly what you need to do to stay compliant, the key deadlines for the 2025/26 tax year, and how to prepare for the new digital requirements.
The Immediate Priority: Your 2025/26 Tax Return
For the 2025/26 tax year (which covers 6 April 2025 to 5 April 2026), things will feel relatively familiar. Even with new digital changes on the horizon, this specific tax year is still filed under the "traditional" Self Assessment system.
Who Needs to File?
You generally need to file tax returns for self employed individuals if:
Your income from self-employment was more than £1,000 (before any personal allowances).
You are a partner in a business partnership.
You have untaxed income, such as from renting out a property or certain investments.
The 2027 Deadline You Can't Miss
The final deadline for filing your 2025/26 tax return online and paying any tax you owe is 31 January 2027.
While that might seem like a long way off, we always recommend getting your tax preparation started as soon as the tax year ends in April 2026. Filing early doesn't mean you have to pay early, but it does give you a clear picture of your finances and prevents the "January stress" that so many small business owners face.
The Big Change: Making Tax Digital (MTD) for ITSA
The biggest headline for 2026 is the official start of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA). This is a government initiative designed to move the UK tax system toward a fully digital model.
Are You Affected in 2026?
Whether you need to join MTD depends on your "qualifying income": which is your total gross income from self-employment and property.
If you earn over £50,000: You must follow MTD rules starting from 6 April 2026.
If you earn between £30,000 and £50,000: You will join the scheme a year later, from 6 April 2027.
If your income is above the £50,000 threshold, 2026 is the year your reporting habits must change. Instead of filing one big return at the end of the year, you will be required to:
Keep digital records of all your business transactions.
Use MTD-compatible software (no more paper ledgers or simple spreadsheets).
Send quarterly updates to HMRC.
Quarterly Update Deadlines
If you are mandated for MTD from April 2026, your first set of quarterly updates for the 2026/27 tax year will follow these deadlines:
Update 1 (6 April – 5 July): Due by 7 August 2026
Update 2 (6 July – 5 October): Due by 7 November 2026
Update 3 (6 October – 5 January): Due by 7 February 2027
Update 4 (6 January – 5 April): Due by 7 May 2027
This is a significant change in workload, which is why many SME owners are now seeking accounting services for SMEs to help manage the transition.
How to Prepare for the 2026 Tax Season
Transitioning to a new tax system can feel overwhelming, but a bit of preparation goes a long way. Here is a practical checklist for self-employed individuals in 2026:
1. Check Your Income Threshold
Review your total turnover from the 2024/25 tax year. If it was over £50,000, you are in the first wave of MTD. Knowing this now allows you to choose the right small business tax services before the rush.
2. Move to Digital Record Keeping
If you’re still using a shoe-box for receipts, it’s time to stop. MTD requires digital records. Start using accounting software like Xero, QuickBooks, or FreeAgent now. This will make the transition in April 2026 much smoother because your data will already be in the correct format.
3. Understand Allowable Expenses
One thing that hasn't changed is your ability to reduce your tax bill through allowable expenses. You can claim for costs that are "wholly and exclusively" for business use, such as:
Office costs (stationery, phone bills)
Travel costs (fuel, parking, train fares)
Marketing and advertising
A portion of your home utility bills if you work from home
Keeping track of these throughout the year is vital for keeping your tax bill as low as possible.
Why You Should Consider a Local Accountant
With the introduction of quarterly reporting, the volume of admin for the self-employed is increasing. Many business owners find that their time is better spent growing their business than wrestling with HMRC's digital portals.
Searching for "local accountants near me" can connect you with a professional who understands the specific challenges of your region and industry. A good accountant doesn't just "do your taxes": they provide peace of mind.
At Accountant Search, we specialize in matching SME owners with the right tax professionals. Whether you need help with the transition to MTD or you just want someone to handle your 2025/26 Self Assessment, finding the right fit is crucial. You can learn more about how hiring a professional will change the way you handle MTD.
Final Thoughts: Don't Wait Until January
The 2026 tax landscape is more complex than usual. While the 31 January 2027 deadline for your 2025/26 return remains the "big one," the introduction of MTD in April 2026 means you cannot afford to leave your paperwork until the last minute.
By switching to digital tools now and partnering with an expert, you can ensure that you meet every deadline without the stress. If you're looking for help, we can match you with local experts who provide tailored small business tax services to keep your finances on track.
Stay organized, stay digital, and 2026 will be your most successful year yet.
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