Making Tax Digital for Self Employed Dentists What’s Changing in 2026

Making Tax Digital for self employed dentists is one of the biggest changes to personal tax reporting since self‑assessment was introduced.

For self employed dentists, Making Tax Digital for Income Tax (MTD) will change how income is reported, how often records are updated, and the systems used to comply.

From 6 April 2026, if your self-employment and/or property income exceeds £50,000, the threshold is based on gross income (before any deductions, such as lab fees or associate fees). You’ll be required to comply with MTD rules. 

Making Tax Digital for self employed dentists: what you need to know 

• You’ll need to maintain digital records of all associate income and expenses.  

• HMRC will not be providing software, so you will need a subscription to simple, affordable commercial software like Xero or FreeAgent (Natwest), which are the ones we initially partnered with.

• Submit quarterly updates of your total associate revenue and expenses to HMRC. 

• Complete a final digital tax return annually (you’ll still need to report other income like salary or dividends) 

This new system will replace the current Self-Assessment process; however, your tax payments will remain unchanged and will still be due in July and January as usual. 

Note: MTD for Income Tax does not apply to partnerships or limited companies. 

Despite the name “Making Tax Digital,” this initiative is about digitising your accounting processes rather than changing how tax works. In our professional opinion, it could benefit from a complete rebrand to better reflect what it requires from self-employed taxpayers. 

Benefits of the new system: 

• It helps spread the tax reporting burden throughout the year 

• Provides real-time financial insights, enabling better tax planning 

• May help you make more informed financial decisions year-round 

We’re excited about this: The new system will provide better insights into your finances throughout the year, potentially aiding in tax planning and informed financial decisions. 

Next steps? Nothing urgent needed right now. If you’d like to stay ahead of the curve, we can discuss digital accounting options that would work well for your practice. 

You also have the option to participate in HMRC’s MTD testing programme from 2025 to 26, which offers an excellent opportunity to familiarise yourself and us with the new process early, without incurring penalties. 

If you have any questions or concerns, reply – we’re here to make this transition as smooth as possible. 

P.S. For the curious, here’s the official guidance Use Making Tax Digital for Income Tax – Guidance – GOV.UK