Where we are now
MTD ITSA is live – your first quarterly submission is due 7 August 2026
Making Tax Digital for Income Tax has been mandatory for self-employed dentists earning over £50,000 since 6 April 2026. If that is you, you are now in Quarter 1 of the new tax year and your first quarterly submission to HMRC is due on 7 August 2026.
MTD compliance is included with our dental accountancy service and can also be purchased standalone.
If you set up your digital records and registered with HMRC before April, your software should already be capturing your records and the August submission is mostly an administrative step. If you have not yet registered, or you are still on paper or spreadsheets, you are technically already non-compliant – but there is still time to get set up properly before the first submission deadline.
The income thresholds then step down over the following two years, pulling more dentists into scope each April.
April 2026 – LIVE NOW
£50,000 gross income threshold. Most established associates and sole-trader practice owners are in scope from this tax year. Currently in Quarter 1.
April 2027 – Next
Threshold drops to £30,000. Catches the majority of mid-career associates. 10 months away.
April 2028 – Future
Threshold drops to £20,000. By this date the large majority of UK dentists are in scope.
Samera has been working with dentists on digital accounts for over 20 years and is a Xero Partner. If you are not yet set up, the priority now is getting you submission-ready in time for 7 August.
Who this is for
MTD ITSA applies to self-employed dentists – both associates and sole-trader practice owners
The rules apply equally to dental associates and to dental practice owners who trade as sole traders. The compliance obligations are the same: digital records, quarterly submissions and an annual declaration. The volume of records is different, but the framework is identical.
Dental associates
Self-employed associates over the threshold
- Self-employed status (most associates)
- Combined self-employment and rental income over the relevant threshold
- All records kept in MTD-compatible software (Xero)
- Four quarterly submissions per year (Aug, Nov, Feb, May)
- One annual end-of-year declaration (by 31 January)
- Self Assessment tax return replaced by the five-report structure
Sole-trader practice owners
Practice owners trading as sole traders
- Same MTD ITSA obligations as associates
- Higher transaction volume – software setup matters more
- Practice expenses, equipment finance, lab costs all in scope
- Mixed VAT positions also affected (MTD for VAT is separate but related)
- Limited company practices NOT yet in scope (but in due course)
- Worth setting up digital systems now even if Ltd to prepare for Corporation Tax MTD
NHS-employed dentists with no self-employment or rental income above the threshold are not currently in scope. If you operate entirely through a limited company and take a salary and dividends rather than filing a Self Assessment as a sole trader, you are also not currently mandated. Speak to us if you are unsure which category applies to you.
The submission year
Five reports per tax year – here is what the next 12 months look like
Your annual Self Assessment return has been replaced by a five-report structure – four quarterly updates plus one annual declaration. The first of these is now 78 days away.
- Quarter 1 update – due 7 August 2026Summary of income and expenses for 6 April to 5 July 2026, submitted through MTD-compatible software directly to HMRC. This is the first ever quarterly submission – the rest of the year follows the same pattern.
- Quarter 2 update – due 7 November 2026Summary of income and expenses for 6 July to 5 October 2026.
- Quarter 3 update – due 7 February 2027Summary of income and expenses for 6 October 2026 to 5 January 2027.
- Quarter 4 update – due 7 May 2027Summary of income and expenses for 6 January to 5 April 2027.
- Annual end-of-year declaration – due 31 January 2028Final declaration confirming your overall tax position for the 2026/27 tax year, including any adjustments and reliefs. Replaces the traditional Self Assessment return.
Quarterly updates are summaries, not full returns. They report your income and expenses by category but do not finalise your tax position. The annual declaration at the end of the year is where final adjustments are made, allowances claimed and your total tax liability calculated.
What we handle
Full migration, quarterly submissions and the annual declaration
We do not just file the reports – we manage the full transition from paper or spreadsheets to a digital workflow that takes minutes per month to maintain. If you are coming to us mid-quarter, we can backfill your Q1 records and have you submission-ready for 7 August.
- Xero setup and migrationSoftware configured with a dental-specific chart of accounts, tracking categories and bank feeds. If you are on paper or spreadsheets, we migrate everything across – including backfilling Q1 records if you are coming to us late.
- HMRC MTD registrationWe register you (or your business) with HMRC for MTD ITSA as your tax agent. Required if you have not already done this – and we can still get you registered now even though mandation has started.
- Quarterly submissionsFour quarterly updates prepared and submitted to HMRC on your behalf, starting with the 7 August deadline. We chase you for missing information well ahead of each deadline.
- Annual end-of-year declarationYour final declaration prepared and submitted by 31 January each year – the replacement for your old Self Assessment return.
- Hubdoc and digital recordsYou scan or photograph receipts and invoices and upload them to Hubdoc. Hubdoc feeds directly into Xero, where our team processes everything.
- Allowable expense reviewWe review your records annually to make sure you are claiming all allowable dental-specific expenses – associates miss more than you might expect.
- HMRC correspondenceAny queries from HMRC about your submissions handled directly by our team. You do not need to log in to HMRC or interact with them.
- Dedicated dental accountantOne named contact who knows your situation, not a different person every time you call.
Packages
Full compliance or training-only – your choice
We offer two routes: a fully-managed compliance service where Samera handles everything, or a one-off training session if you want to manage your own records with expert guidance on setup.
Fully managed – we handle everything
MTD ITSA Compliance Package
Price: Pricing based on your turnover and service level (book a free consult for a fixed quote)
For associates and sole-trader practice owners who want their MTD obligations handled in full.
Includes:
- Quarterly digital records and preparation of MTD reports
- Submission of all four MTD reports to HMRC each year (starting with 7 August)
- Annual end-of-year declaration and final tax position adjustments
- Annual Self Assessment tax return preparation
- MTD-compliant Xero software subscription
- Hubdoc setup for receipt and invoice capture
- HMRC compliance guidance throughout the year
- Email and phone support
- Dedicated dental tax accountant
- Initial setup, HMRC MTD registration and onboarding (including backfill if mid-quarter)
Not sure which option suits you? Book a free 30-minute call. We will look at your current setup, tell you what catching up to 7 August would involve, and recommend the right approach based on your income level, comfort with software and how much time you want to spend on it.
Who you’ll work with
Speak to the MTD team
Book a free, no-obligation call directly with the team member whose work matches what you need.
CEO, Samera
- Dental Accountancy and Tax for Dental Groups and DSOs
- Samera AI – Automation of Financial Systems
Accountancy Senior Manager
- Dental Accountancy and Tax for Practice Owner
- Tax Saving Advice
- Samera AI – Automation of Financial Systems
Business Development Executive – Accountancy and Tax
- Making Tax Digital Expert
- Dental Accountancy and Tax for Dental Associates
Or send us a message
If you’d prefer to send us your details rather than book a call, fill in the form below and our team will be in touch as soon as possible.
Phone: (+44) 20 7100 8788
WhatsApp: Message us on WhatsApp
Client reviews
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.
Patrick, Dentist – 5 Stars
As a busy dental associate, I have been using Samera Accounting services for over 7 years now and have found them to be highly professional, prompt in correspondence and … extremely helpful to any enquiries which I have had.
Alistair, Dentist – 5 Stars
Used Samera business advisors for my self tax return form and they were amazing from start to finish. They made me understand every single step and made the process swift!
Remzie, Dentist – 5 Stars
Related services
Dental accountants
Full dental accounts and tax service – MTD is included with our packages.
Further reading
Bookkeeping for Dentists
Why good bookkeeping is the foundation of MTD readiness and how to keep your records in order throughout the year.
Taxes for Dental Associates
Self-assessment, allowable expenses and tax planning for self-employed dental associates.
Dentist and Dental Associate Expenses Guide
The complete list of expenses dental associates can claim, including items commonly missed.
Frequently asked questions
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) is the UK Government’s requirement for self-employed individuals and landlords to keep digital tax records and submit income and expense updates to HMRC quarterly, rather than filing a single annual Self Assessment return. It is part of HMRC’s broader programme to move the entire tax system to digital reporting.
Does MTD apply to me as a dentist?
If you are a self-employed dental associate or a dental practice owner trading as a sole trader, and your gross income from self-employment and property combined exceeded £50,000 in the 2024/25 tax year, MTD has applied to you since 6 April 2026. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. NHS-employed dentists with no private income or rental income above the threshold are not currently in scope.
What are the MTD ITSA income thresholds and deadlines?
From April 2026, the threshold is £50,000 gross income from self-employment or property. From April 2027 it drops to £30,000, and from April 2028 it drops to £20,000. These are gross income thresholds, not profit thresholds, so your turnover before expenses is what counts. The first quarterly submission deadline for in-scope dentists is 7 August 2026.
What replaces my Self Assessment tax return under MTD?
Your annual Self Assessment return is replaced by a five-report structure. You submit four quarterly updates summarising your income and expenses, with deadlines of 7 August, 7 November, 7 February and 7 May. You then file a final end-of-year declaration by 31 January following each tax year, which confirms your overall tax position for that year.
What counts as qualifying income for MTD ITSA?
Qualifying income includes gross income from self-employment and gross income from UK property. If the combined total of these two income streams exceeds the threshold, you are in scope for MTD. Income from employment, pensions and investments does not count toward the threshold but is still reported annually as part of the final declaration.
I am a dental associate paid through a limited company. Does MTD apply to me?
MTD ITSA applies to self-employed individuals, not limited companies. If you operate entirely through a limited company and take a salary and dividends rather than filing a Self Assessment as a sole trader, you are not currently mandated into MTD ITSA. Corporation Tax digital reporting is a separate workstream that HMRC has signalled it will bring into scope in due course. If you are unsure about your trading structure and how it affects your MTD obligations, speak to our team.
What software do I need for MTD?
You must use software that is compatible with HMRC’s MTD systems and can submit reports directly to HMRC. Samera uses and recommends Xero for all dental clients. A full list of compliant software is available on gov.uk. Spreadsheets alone are not sufficient unless they are linked to bridging software that can communicate with HMRC.
Can I keep using spreadsheets under MTD?
You can use spreadsheets but only if they are linked to HMRC-compatible bridging software that can submit your quarterly updates. A standalone spreadsheet with no direct HMRC connection will not meet the MTD requirements. For most dentists, moving to dedicated software such as Xero is simpler, more reliable and less prone to error than a bridging software workaround.
How long do I need to keep my digital records?
You are required to retain digital records for a minimum of six years under MTD ITSA.
What happens if I do not comply with MTD?
HMRC operates a points-based penalty system for MTD ITSA. You accumulate a penalty point for each missed quarterly submission. Once you reach the threshold number of points, a financial penalty applies. There is also interest charged on any tax paid late. The points reset after a period of full compliance. HMRC has indicated it will take a supportive approach in the early stages of mandation, but the penalty framework is live from the point the rules apply to you.
Are there any exemptions from MTD?
You may be able to apply for an exemption if it is not reasonably practicable for you to use digital tools due to age, disability, remoteness of location or other factors. Religious objections to using computers may also qualify. Exemptions must be applied for through HMRC and are assessed on a case-by-case basis. If you think you may qualify, speak to our team before assuming you are exempt.
I have rental income as well as my dental income. How does MTD affect me?
If your combined gross income from self-employment and rental property exceeds the MTD threshold, both income streams must be reported under MTD ITSA from the point you are mandated. Your rental income and expenses are reported quarterly alongside your dental income, and both are captured in the final end-of-year declaration.
What is the difference between MTD for VAT and MTD for Income Tax?
MTD for VAT has been in place since 2019 and requires VAT-registered businesses to keep digital VAT records and submit VAT returns through compatible software. MTD for Income Tax is a separate requirement covering Self Assessment taxpayers. If your dental practice is VAT-registered, you are likely already using MTD-compatible software for VAT purposes, which means the transition to MTD ITSA may be straightforward as your software infrastructure is already in place.
How much does it cost to become MTD compliant with Samera?
Our MTD ITSA Compliance Package covers quarterly record keeping, all HMRC submissions, your annual Self Assessment, software subscription, setup and a dedicated dental tax accountant. Pricing is based on your annual turnover and service level. We also offer a standalone one-off training session at £750 plus VAT for dentists who want to manage their own records with expert guidance on how to use the software correctly. Book a free consultation to discuss which option suits your situation.
Can Samera take over my MTD from another accountant?
Yes. If you are currently with another accountant or managing your own records and want to switch to Samera, we handle the full transition. This includes transferring your records into Xero, registering you with HMRC for MTD, and onboarding you into our digital workflow. We do this regularly and the process is straightforward.
I have not registered for MTD yet. Is it too late?
No, but you need to act now. MTD ITSA mandation began on 6 April 2026 and the first quarterly submission deadline is 7 August 2026. If you have not yet registered with HMRC, set up MTD-compatible software, or backfilled your Q1 records (6 April onwards), you are technically already non-compliant – but there is still time to get set up properly before the August deadline. HMRC has indicated it will take a supportive approach in the early stages of mandation. Samera can register you, set up Xero, backfill your records and submit your first quarterly update on time. Typical setup takes one to two weeks.
What is the Samera digital workflow and how does it work day to day?
Once you are set up with Samera, the day-to-day process is minimal. You scan or photograph your receipts and invoices and upload them to Hubdoc. Hubdoc feeds directly into Xero, where our team processes your records. We prepare and submit your quarterly updates to HMRC and handle your annual declaration. You do not need to log in to Xero or interact with HMRC directly unless you want to.
Do I need to sign up for MTD, or does it happen automatically?
You need to sign up for MTD ITSA – it does not happen automatically. HMRC requires you to register through your software or through a tax agent acting on your behalf. If you are in scope (over £50,000 gross self-employment or property income) and have not yet registered, you should do so now to avoid missing the 7 August submission deadline. Samera handles this registration as part of our onboarding process.
What if my income drops below the MTD threshold after I have been mandated?
Once you have been mandated into MTD ITSA, you will only be able to exit the scheme if your qualifying income falls below £20,000 for three consecutive tax years based on your filed returns. Dropping below £50,000 or £30,000 in a single year does not automatically remove you from the scheme.
Submission-ready in time for 7 August
If you have not yet registered with HMRC for MTD, or you are still on paper or spreadsheets, the first quarterly submission deadline is 78 days away and we can get you set up in time. Book a free 30-minute call with Natasha or the team – we will look at where you are now, tell you what catching up involves, and confirm the fee upfront. No forms, no obligation.