What is a Final Declaration for ITSA?
The final declaration is part of the MTD for ITSA system. MTD for ITSA is the name given to the process of submitting your self employed, rental and any other relevant income to HMRC.
A final declaration in some respects replaces the annual self assessment tax return and is used to finalise your end of year position.
The statement provides HMRC with confirmation that you accept that the information being submitted through MTD for ITSA are your finalised figures for that tax year.
HMRC will use the final declaration and other MTD for ITSA submissions to calculate your final tax position for that tax year.
When do I submit a Final Declaration?
The final declaration for MTD can only be completed after the following steps have been followed:
- All four quarterly updates confirming income and expenditure have been submitted.
- EOPS or end of period statement has been finalised.
- All income has been provided in addition to income from self employment and rental business sources.
- Any other relevant additional information has been provided.
When the process above has been completed the final declaration should be submitted electronically to HMRC.
You can use our Making Tax Digital guide to find out more about MTD for ITSA and how it could effect your business.
Who has to complete a Final Declaration for ITSA?
The government have stated that sole traders and landlords will need to submit a final declaration and comply with MTD for ITSA from April 2026 if your income is more than £50,000.
If your income is more than £30,000 you will meet MTD for ITSA criteria from April 2027.
MTD for ITSA Final Declaration deadline
A submission deadline of 31 January following the end of the tax year is in place for a final declaration.
If your final declaration is not received by HMRC within the designated time a penalty will be automatically generated under the making tax digital penalty system.
MTD for ITSA Final Declaration software
Your ITSA final declaration and other MTD submissions will have to be sent to HMRC electronically using HMRC approved accountancy software.
A free option to keep your accounts digitally and make MTD submissions is not available from HMRC.
HMRC provides a list of HMRC MTD compatible software which includes information on who can use the software and it’s main features.
