Talk to an Expert Call us: (+44)20 7100 8788
Making Tax Digital is the UK Government’s initiative to “make it easier for individuals and businesses to get their tax right and keep on top of their affairs.”
The goal is to make the UK’s tax infrastructure as digital as possible. It is hoped that this will make HMRC’s tax system more efficient, effective and easier to use and navigate for businesses.
Making Tax Digital entails swapping your accounts and tax from paper records to online, digital records. The idea is for as many businesses and sole traders as possible to go completely paperless with their accounts and tax.
Making Tax Digital is split into the following phases:
So, how will Making Tax Digital affect dentists?
Samera have been my accountant for 7 years and have continued to provide me with accurate accounts and timely submissions. Their digital workflow eases the management of receipts and filing. I have found them to be supportive and knowledgeable particularly during the recent crisis. Thank you.
Five stars
On 6th April 2026 Self Assessment tax payers will need to abide by the Making Tax Digital for Income Tax regulations.
These new regulations in 2026 will only apply to Self Assessment taxpayers who file a taxable income above £50,000 a year. As an Associate dentist, you almost certainly will.
Click here to listen to our podcasts on how dentists can reduce their tax bill.
From 6th April 2026, you will have to use digital software to hold and process digital records of your accounts and tax. Paper records of your accounts and tax will no longer be allowed by law. A public testing of this commences from April 2025.
The software you use to hold and process your digital records must be Making Tax Digital compliant.
You can find a list of compliant software on the .gov.uk website here.
Your Self Assessment tax return will also change. You will instead be required to submit 5 reports throughout the year. These are, 4 quarterly summaries of your accounts, as well as an end-of-year report.
The dates you will be required to submit these returns are:
The end of year return must be filed by 31st January after each relevant tax year. Your tax bill will also need to be paid by 31st January following the relevant year, but you will be able to make tax payments throughout the year if you wish.
You can find out more about accounts and tax for dental associates here.
Currently MTD will apply to practices that trade as sole traders and earn over £50k from April 2026. Again we are recommending our clients enter the public trial and we will be implementing this with our client base. This is subject to eligibility so check with us or HMRC.
For those practices that trade as companies, we are still awaiting a date when MTD applies for corporation tax.
You can sign up to the scheme early voluntarily, no matter your taxable turnover. This may be worth doing, in only to give yourself more time to get used to the new process.
Click here to watch our webinar on using Xero and Hubdoc for your dental practice accounts.
It is also required that your practice uses digital accounting software that is compliant with Making Tax Digital, such as Xero. You will need to keep your digital records for 6 years.
You can find a list of compliant software on the .gov.uk website here.
At Samera we no longer accept paper records for our accountancy clients. All accountancy and tax records need to be in digital format.
We only use software that is compliant with the Making Tax Digital scheme. We are a Xero Gold Partner and have been pioneering digital accountancy for dentists for years.
When you go digital with our dental accountants, your accounts and tax are received, processed and stored safely, securely and easily.
All you need to do is scan your receipts and invoices, upload them to Hubdoc and we will do the rest!
The process is quick, simple and safe – which means you save time, effort and money.
MTD is a government initiative aimed at modernizing the UK tax system. It requires certain individuals, including self-employed dentists and property landlords, to:
Yes, if you’re a self-employed dentist or a landlord earning above the MTD thresholds, you will need to comply.
However, NHS-employed dentists may not need to comply unless they also have private practice or property rental income above the threshold.
Digital Record-Keeping:
Quarterly Updates:
End-of-Year Finalization:
You must use MTD-compatible software or spreadsheets linked to HMRC systems. Common software for dentists includes:
Check that your software can handle MTD ITSA requirements.
Dentists may qualify for exemptions if:
You can apply for an exemption by contacting HMRC.
Failure to comply can result in:
Quarterly submissions:
Final Declaration:
Yes. If your gross rental income combined with self-employment income exceeds the threshold, you must report both under MTD ITSA.
Income from employment, pensions, or investments is not reported quarterly to HMRC under MTD ITSA.
It is reported annually as part of the finalization process, similar to the current self-assessment tax return.
Ways to report other income under MTD ITSA:
A taxpayer can leave MTD ITSA if their turnover or gross income falls below the threshold for three successive tax years. The exemption can be claimed starting from the next tax year after meeting this condition.
As dental practice owners ourselves, we know what makes a clinic tick. We have been working with dentists for over 20 years to help manage their accounts and tax.
Whether you’re a dental associate, run your own practice or own a dental group and are looking to save time, money and effort on your accounts and tax then we want to hear from you. Our digital platform takes the hassle and the paperwork out of accounts.
To find out more about how you can save time, money and effort on your accounts and tax when you automate your finances with Samera, book a free consultation with one of our accounting team today.
For more articles, webinars and blogs on dental accounts check out the dental accountancy section of our Learning Centre and follow us on YouTube, Facebook and Instagram.
Enter your email address for:
Newsletters • Events • Learning Centre Posts • Blog Posts