Send a final declaration for MTD for Income Tax

This article explains how to send a final declaration to HMRC for Making Tax Digital (MTD) for Income Tax.

The final declaration finalises the Income Tax position for the whole of the tax year and covers all of your income sources and individual information.

If you have multiple income streams signed up to MTD for Income Tax, for example if you have multiple self-employments or you have a self-employed business and also rent out properties, you only need to include individual information in one FreeAgent account and file one final declaration from one FreeAgent account. You would then be able to mark the final declaration(s) as sent in your other FreeAgent account(s). You can find out what counts as multiple income streams, as well as tips for managing more than one income stream, in our how to efficiently manage multiple income streams guide. 

1. Navigate to the Income Tax area

Navigate to the ‘Taxes’ tab at the top of the screen and select ‘Income Tax’ from the drop-down menu.

Select the relevant tax year from the list.

2. Enter any individual information

Next, select the ‘Individual information’ tab.

If you haven’t already done so, enter any individual information relating to income outside of self-employment or property income, and disclosures, such as paying Class 2 National Insurance Contributions (NICs) voluntarily, and details of any tax avoidance schemes.

You may need to report other disclosures, reliefs, or income, such as dividend income earned, during the tax year on the Individual information page.

If you’re unsure whether you need to enter any individual information, please speak to your accountant. If you’re not currently working with an accountant, you may wish to find one using FreeAgent CoPilot.

3. Request data from HMRC

If you need to, you can request data from HMRC if they will have details of any income you've earned. This might include employment income where your employer has filed payroll through RTI. It would also include income from a second or third MTD for Income Tax income stream that you're managing through separate FreeAgent accounts.

4. Create a final tax breakdown

Once you’re happy with the information in FreeAgent, select ‘Send Final Declaration’.

The submission starts with sending all the data to HMRC and getting back a tax breakdown to review. Select ‘Create Final Tax Breakdown’.

5. Review the final tax breakdown

Next, carefully review the figures provided by HMRC for your income and your tax calculation. It’s important to make sure that you’re happy that the figures are correct as the tax breakdown will be used by HMRC to decide how much tax you owe.

If you’re unsure about any of the figures on the tax breakdown, please speak to your accountant or HMRC.

Once you’re happy with the final tax breakdown, select ‘Accept and Continue’ to confirm that the tax breakdown is complete and correct.

6. Submit your final declaration to HMRC

Finally, tick the checkbox to confirm that you accept the legal declaration that the information you’ve provided is correct and complete to the best of your knowledge, and select ‘Send Final Declaration’ to send your final declaration to HMRC.

Once the final declaration has been submitted and received by HMRC, you’ll see confirmation in the banner at the top of the page.

You’ll also receive confirmation via email.

If you have multiple income streams signed up to MTD for Income Tax, the final declaration in the other FreeAgent account(s) that you didn’t use to send it to HMRC, can be marked as sent. To do this, go the ‘More’ button in the top-right and select ‘Mark Final Declaration as sent’ from the drop-down menu.

Sending amendments after the final declaration has been submitted

If you need to submit an amendment after a final declaration has been submitted, make any changes to the bookkeeping data or update the MTD for Income Tax tabs as required. Then, select ‘Edit tax year details’ in the top-right of any page in the MTD for Income Tax area.

Select ‘Yes’ to ‘Are you making an amendment’ and select ‘Save Changes’.

You’ll then see the option to select ‘Send Amended Final Declaration’.