What is a final declaration under Making Tax Digital?
Answered 11 March 2026
Based on the sources retrieved, I can provide a partial answer about the final declaration under Making Tax Digital (MTD), primarily in the context of MTD for Income Tax.
What the law says
Under the MTD for Income Tax framework, legislation requires digital record keeping, at least quarterly updates of summary income and expenses, and an annual declaration. The annual declaration must be submitted at the earliest of 31 January or 10 months after the end of the accounting period.
The legislation also provides that where a person ceases to carry on a business, a final quarterly update is required for the quarterly update period during which the business ceases, and the person must give notice of the cessation and its date to HMRC on or before the quarterly deadline for that final quarterly update period.
HMRC guidance / practice
Under MTD for Income Tax, the process works as follows:
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Quarterly updates: Customers are required to submit updates of their summary business information at least every 3 months via their software.
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Final declaration (annual declaration): After the quarterly updates are complete, customers must submit an annual declaration — this is the final declaration — which confirms and crystallises their tax position for the year. It is submitted at the earliest of 31 January or 10 months after the end of their accounting period.
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Agent actions: When authorised, an agent can submit the tax return (i.e., the final declaration) and ensure tax due is paid by 31 January the following year.
In essence, the final declaration is the MTD equivalent of the traditional Self Assessment tax return — it is the year-end submission through which a taxpayer confirms all their income, claims any reliefs or allowances not already captured in quarterly updates, and establishes their final tax liability for the year.
⚠️ Note: The available sources provide only limited detail on the precise mechanics and legal definition of the final declaration. For a fuller technical treatment, you may wish to consult HMRC's MTD for Income Tax guidance directly on GOV.UK, or the relevant statutory instrument (the Income Tax (Digital Requirements) Regulations 2021, SI 2021/1076, as amended).
Citation sources
information has been provided for that year ; and b immediately after the end of the tax year in which it is withdrawn, in all other cases. Update notices 8 1 “Update notice” means a notice made by the Commissioners which is stated to be made further to this regulation and which specifies update information to be provided to HMRC. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 For different descriptions of relevant person, different update information may be specified. Comme
When authorised, your agent can: sign you up for Making Tax Digital for Income Tax create, store and correct digital records of your self-employment and property income and expenses send your quarterly updates to HMRC submit your tax return and pay tax due by 31 January the following year Find out more about Making Tax Digital for Income Tax.
In the March 2015 Budget the government announced its vision for modernising the tax system in order to make it easier for individuals and businesses to get their tax right and keep on top of their affairs, meaning an alternative to the Self-Assessment tax return system. Changes were introduced gradually from April 2017 ahead of legislative changes introduced from April 2018 for businesses and landlords with a turnover exceeding the VAT registration threshold and from April 2019 for those with a