How to exit MTD when all self employment and property income ceases
HMRC's advice is reproduced below.
HMRC has now improved the journey for taxpayers who have ceased all self‑employment and property income since the end of the 2024/25 tax year.
- Taxpayers who contact us to tell us they have ceased income will now have their records updated at the point of contact.
- Advisers have clear guidance to capture the necessary information via HMRC chat or phone and will confirm that the taxpayers no longer need to use MTD for Income Tax.
- Advisers will update the customer’s record to reflect the cessation, and taxpayers will receive written confirmation that they no longer need to use MTD for Income Tax.
How this works
Taxpayers who have ceased all self‑employment and property income since the end of 2024/25
- Taxpayers will need to contact HMRC to tell us about the cessation, as this will not have been included on their last tax return.
- An adviser will take the details, update their obligations and confirm they are no longer required to use Making Tax Digital for Income Tax.
- The customer will still need to submit a 2025/26 Self-Assessment tax return, which will confirm the cessation.
Taxpayers who have ceased one source of income but continue to receive income from another source
- Taxpayers will still need to start using Making Tax Digital for Income Tax from 6 April 2026.
- After signing up, they will be able to enter the end date of the ceased business using HMRC online service.
- The cessation will also be confirmed when they submit their 2025/26 Self-Assessment tax return.
HMRC has updated GOV.UK guidance on cessation to reflect this.
HMRC has also recently updated our MTD manual to explain what taxpayers need to do if their income source ceases, after they start to use MTD.
