Making Tax Digital (MTD) for Income Tax is one of the biggest transformations to the UK tax system in decades.

For many self-employed professionals, landlords, business owners, and healthcare professionals, the move towards digital tax reporting brings both uncertainty and concern. Common questions include:

• What exactly is changing?
• Who will be affected?
• What records need to be kept?
• Will quarterly submissions create more work?
• How early should businesses prepare?

A system already in motion

The reality is that digital reporting is no longer something reserved for the future – it is already here.

HMRC is steadily moving toward a system built around digital record-keeping, cloud-based accounting software and more regular reporting. While this shift may initially feel overwhelming for some professionals, the long-term goal is to improve accuracy, reduce reporting errors, and create better visibility over tax obligations throughout the year.

Webinar overview

We were joined by Azets, a UK top ten accounting and business advisory firm, for a webinar that focused on what dentists need to do now to ensure compliance with this significant change.

Vanessa Pople, Partner and Head of Dental, and Anita Holmes, MTD Client Services Director, talked through the changes, the impact for dentists and clarified what next steps should be taken.

A summary of what was discussed is below.

What is Making Tax Digital (MTD) for Income Tax?

MTD is part of the government’s plans to make it easier for individuals and businesses to ensure their tax is correct and keep on top of their affairs.

Under MTD, impacted taxpayers must:

• Keep digital records
• Use compatible software
• Submit updates every quarter, bringing the tax system closer to real time

Who MTD for Income Tax impacts

As of April 2026, MTD for Income Tax impacts sole traders, self-employed practice owners and dental associates, and landlords with gross income over £50,000.

The rollout is phased based on gross income:

• From April 2026, for income over £50,000
• From April 2027, for income over £30,000
• From April 2028, for income over £20,000

Eligibility is based on your recently submitted 2024/25 tax return.

How to comply

This is a mandatory change, and non-compliance will result in penalties from HMRC.

To comply:

• Digital records must be kept
• Any return needs to be done using MTD-compatible software
• Updates must be submitted every quarter
• At the end of the year, a Final Declaration will be filed incorporating MTD and any other sources of income

Remember: You still need to submit your 2025/26 self assessment return.

Key deadlines

You’ll submit updates every 3 months:

• Quarter 1 → due 7 August
• Quarter 2 → due 7 November
• Quarter 3 → due 7 February
• Quarter 4 → due 7 May

In addition, a Final Declaration is due by 31 January following the end of the tax year.

What do dentists need to report quarterly?

Each quarter, dentists report:

• Income (e.g. NHS contracts, private fees – including plan fees, associate income)
• Expenses (e.g. indemnity, labs, materials, travel, CPD)

What should dentists do now?

With MTD for Income Tax now in effect (from 6 April 2026) and the first quarterly deadline approaching, early preparation is key.

• Confirm if you’re in scope – Understand when MTD applies to your practice and income.
• Move to compliant software – Use HMRC-approved tools for digital record-keeping and quarterly submissions.
• Digitise your finances – Keep accurate, real-time records of income, expenses and receipts.
• Report more frequently – Prepare for quarterly updates plus an end-of-year submission.
• Strengthen processes – Maintain records regularly (ideally monthly) to avoid last-minute pressure.
• Engage your adviser early – Work with your accountant to set up systems and ensure compliance.
• Upskill your team – Ensure you and your staff understand new tools, deadlines and responsibilities.

Ensure your compliance today

If you need support ahead of the first filing deadline this August, Vanessa and Anita can help guide you through your obligations and the available Azets packages. Visit: azets.com/MTD