If you've landed here asking that question, you're not alone. It's one of the most searched phrases in UK personal finance, and the answer is changing. From April 2026, the way millions of people submit income tax information to HMRC is shifting significantly, thanks to Making Tax Digital for Income Tax.
Here's what you need to know.
The Traditional Self Assessment Process
Currently, if you're self-employed, a sole trader, a landlord, or a CIS subcontractor earning above the reporting threshold, you're required to complete a Self Assessment tax return each year. The process looks like this:
- Register for Self Assessment with HMRC if you haven't already. You'll need a Government Gateway account and your UTR (Unique Taxpayer Reference).
- Gather your records, including income, expenses, CIS deductions, and any other relevant financial information for the tax year.
- Log in to your HMRC online account at gov.uk and complete your return.
- Submit by 31st January following the end of the tax year. Paper returns have an earlier deadline of 31st October.
- Pay any tax owed by 31st January.
It's worth noting that EEBS does not offer tax return filing services. However, if you're a CIS subcontractor, we can point you in the right direction, and there's something coming that's very relevant to you.
Making Tax Digital Is Changing Everything, From April 2026
The expansion of Making Tax Digital (MTD) for Income Tax marks one of the biggest shifts in UK tax reporting in decades. If you're a sole trader or landlord with total gross income over £50,000 (based on your 2024-25 tax return), the traditional Self Assessment process will no longer apply to you from April 2026.
Instead, you'll need to:
- Keep digital records using HMRC-compatible software
- Submit quarterly income and expense updates directly to HMRC
- Complete a final end-of-year declaration, which replaces the traditional annual tax return
The threshold is also set to drop further in subsequent years, so even if you're just below £50,000 now, it's worth getting ahead of the changes.
Does MTD Apply to CIS Subcontractors?
This is one of the most common questions we hear, and the short answer is: yes, it can.
If you're paid through CIS and your total gross income exceeds the threshold, you fall within the scope of Making Tax Digital for Income Tax. Please don't assume it won't apply just because you're paid through the Construction Industry Scheme.
How EEBS Can Help
At EEBS Ltd, we're making the MTD transition straightforward for our subcontractors.
If you already work with a contractor using our Construction Payroll solution, you'll receive free access to our brand-new Making Tax Digital App, designed specifically to take the stress out of compliance.
The app will help you to:
- Record and store income and expenses digitally
- Stay on top of deadlines with built-in reminders
- Understand which expenses are allowable
- Integrate with leading software such as QuickBooks and Xero
- Share your information seamlessly with your referred accountant
Just like our payroll solution, the MTD app is built to remove stress, reduce paperwork, and keep everything compliant, so subcontractors can focus on the job rather than the admin.
Not currently working with us? If you'd like a fully compliant CIS payroll solution with MTD support included, get in touch today. We're here to help you stay ahead of the changes.
