How will digital tax reporting affect UK Self Assessment filings in the 2024/25 tax year?

Introduction: a year of transition for Self Assessment

The 2024/25 tax year lands in the middle of a long-running shift in how UK taxpayers record, summarise, and submit information to HM Revenue & Customs (HMRC). For decades, Self Assessment has largely been built around an annual cycle: keep your records, add things up, then file a return after the year ends. In contrast, digital tax reporting is about moving the record-keeping and reporting process closer to real time, using software rather than spreadsheets, notebooks, and paper folders.

If you are self-employed, a landlord, or otherwise required to submit a Self Assessment return, it is natural to ask what digital tax reporting will actually do to your 2024/25 filing. Will it change what you have to submit? Will it change deadlines? Will HMRC expect quarterly submissions? Will the way you keep records matter more than the figures you type into the return?

The honest answer is that for most people, the core obligation to file a Self Assessment return for 2024/25 remains familiar: you still report income and allowable expenses for the year, calculate tax due, and meet the normal deadlines. However, the influence of digital tax reporting is already being felt in the background, and it will affect how you prepare, how you avoid errors, how you respond to queries, and how quickly you can complete your return. For some taxpayers, digital reporting will also shape the tools you use and the expectations placed on your record keeping, even if the final submission looks similar to previous years.

This article explains what “digital tax reporting” means in practical terms, how it connects to Self Assessment, what to watch for in the 2024/25 tax year, and how to prepare so that your filing is smoother, more accurate, and less stressful.

What “digital tax reporting” really means in the UK context

In everyday conversation, “digital tax reporting” can mean several things at once. Some people use it to describe sending a tax return online rather than posting paper forms. Others mean the use of accounting software to keep digital records. And for many, it refers to the broader programme of modernising UK tax administration through digital systems and online accounts.

For Self Assessment filers, the most relevant interpretation is this: digital tax reporting is the push towards maintaining your business or property records in a digital format and using software (or compatible tools) to generate and submit tax information, with less manual re-keying and fewer end-of-year surprises. It is not only about the final filing step; it is about the whole chain from receipt and invoice to categorisation, totals, and reporting.

In practice, digital reporting is driven by three connected changes:

First, record keeping is increasingly expected to be structured and systematic. Instead of compiling totals at the last minute, the intention is that transactions are captured throughout the year in a consistent way.

Second, software is expected to play a bigger role. That might be a full accounting package, a lightweight bookkeeping app, or even a spreadsheet that links in specific ways, depending on what is permitted and practical for your circumstances.

Third, HMRC is building systems that can accept data more frequently and provide a more continuous picture of tax position. Even if you do not submit quarterly information in 2024/25, the trend matters because the way HMRC designs online services and compliance checks is influenced by the availability of more structured, digital data.

Self Assessment in 2024/25: what stays the same

Before focusing on what changes, it helps to anchor on what does not. If you are within Self Assessment for 2024/25, you will typically still complete a tax return covering the period from 6 April 2024 to 5 April 2025. You will still declare relevant sources of income such as self-employment profits, property income, dividends, interest, and gains, along with allowable reliefs.

You will still calculate your tax liability based on the rules that apply to those income types and to your personal circumstances. The familiar payment structure is still relevant: any balancing payment due by the January deadline after the end of the tax year, and payments on account where applicable.

The reporting categories in the return remain broadly the same. Being “more digital” does not rewrite the tax law for what is taxable, what is allowable, or what reliefs apply. It is mainly a change in process, not a change in the underlying tax calculation principles.

For many taxpayers, especially those with straightforward affairs, the 2024/25 filing can still be completed using HMRC’s online Self Assessment service in a similar way to prior years. You will still be asked for totals rather than a line-by-line upload of every transaction. That said, digital tax reporting affects how you arrive at those totals, and it affects your risk of mistakes and the ease of responding if HMRC asks questions.

Where digital tax reporting affects Self Assessment: the “before you file” stage

The biggest impact of digital tax reporting on Self Assessment is felt before you ever log in to submit your return. The key question becomes: how are you keeping your records during 2024/25?

Many people still do things the old way: bank statements in a folder, a spreadsheet updated quarterly, or a box of receipts that gets reviewed once a year. The digital trend pushes against that approach, not necessarily because HMRC can see your receipts (they usually cannot), but because digital record keeping reduces errors and makes it easier to justify your figures.

In 2024/25, the real-world pressure points often look like this:

If you are self-employed, you may find that using software to track invoices, expenses, and mileage makes it significantly easier to produce an accurate profit figure. It also creates an audit trail: a clear link between the totals you report and the underlying records.

If you are a landlord, digital tools can help you separate capital expenses from repairs, track letting agent fees, record insurance and safety costs, and manage periods of voids. The more clearly you keep those records, the less likely you are to misstate allowable expenses or miss income.

If you have multiple income streams, digital tracking helps you avoid duplication and omission. For example, people sometimes misclassify reimbursements as income, forget to include small side income, or include personal spending as business costs.

None of this is new in principle, but the digital push makes good record keeping easier, and it makes poor record keeping more risky because errors are more likely and harder to defend.

Software versus spreadsheets: what will feel different in 2024/25

One of the most practical questions is whether you have to switch from spreadsheets to software for 2024/25. The short, practical answer for many people is that you can still use spreadsheets as an internal tool, but relying exclusively on an unstructured spreadsheet can create problems, especially if you are not careful about categorisation and supporting evidence.

Software changes the experience in several ways:

It encourages consistent categorisation. Instead of deciding at year end whether something is “repairs” or “travel,” you typically assign categories as you go, with the ability to reclassify later if needed.

It reduces re-keying. Many systems allow bank feeds or imports, meaning transactions flow in and you match them to invoices or classify them. Less typing generally means fewer errors.

It creates a trail. In the event of a question, you can often click from a total to the underlying transactions, and from transactions to receipts or notes.

It highlights anomalies. Many tools flag uncategorised items, duplicated entries, unusual spikes, and missing invoices.

Spreadsheets can be perfectly adequate for simple businesses, but you need discipline: separate business and personal spending, keep a clear chart of categories, and ensure totals are supported by bank statements and receipts. If you are moving towards more digital record keeping in 2024/25, the difference you will feel is not only speed, but confidence that your totals are defendable.

Digital reporting and HMRC’s expectations around record keeping

Even where the legal requirement is simply to keep “adequate records,” what counts as adequate becomes clearer when digital tools exist. Adequate records are those that allow you to demonstrate how you arrived at the figures on your tax return. In practice, that means you should have:

Evidence of income, such as invoices issued, payment confirmations, platform statements, or bank entries.

Evidence of expenses, such as receipts, supplier invoices, mileage logs, and contracts.

A method of summarising those transactions into totals that match the categories required by Self Assessment.

Digital record keeping strengthens all three. It also reduces the risk that you lose records or can’t reconstruct them, which is a common real-world issue when people rely on paper receipts and a single laptop.

For 2024/25, a practical effect is that if you move to digital record keeping now, you may spend less time at filing season hunting for information and more time checking the tax logic of what you are reporting. That is a healthier way to file: less chaos, more review.

The link to Making Tax Digital and why it matters even if you are not “in” yet

Digital tax reporting is often discussed alongside Making Tax Digital (MTD), a programme that has already changed VAT reporting for many businesses and is designed to extend to other taxes over time. Even if your Self Assessment filing for 2024/25 is not required to be done under a fully digital reporting regime, the direction of travel matters for several reasons.

First, if you adopt digital bookkeeping now, you reduce the pain of any future transition. Changing how you keep records is easier when you do it at the start of a tax year, rather than mid-year or when deadlines are looming.

Second, the “quarterly mindset” improves cash-flow planning even when it is not mandatory. Many Self Assessment taxpayers struggle with the January bill because they only discover their profit after the year ends. A quarterly review, even informal, lets you estimate tax, set money aside, and avoid nasty surprises.

Third, more digital data can mean more targeted compliance. When HMRC receives cleaner data over time, it becomes easier to identify anomalies. That can be good news if you are accurate, but it increases the importance of consistent categorisation and avoiding errors that could appear suspicious.

How digital tax reporting changes your 2024/25 filing workflow

For many people, the filing workflow in 2024/25 will shift from “annual scramble” to “ongoing maintenance.” That change is not imposed overnight, but it is encouraged by the tools available and the benefits they bring.

A modern workflow might look like this:

Throughout the year, you capture income and expenses as they occur. You use bank feeds or imports to avoid manual entry. You attach digital copies of receipts where possible.

Each month or quarter, you review uncategorised transactions, confirm that income has been fully captured, and check that expenses are correctly split between allowable and non-allowable.

Near year end, you review for adjustments: private use proportions, capital allowances if relevant, stock or work-in-progress if applicable, and any reliefs or pension contributions that affect the year.

When filing time arrives, the Self Assessment return becomes a matter of extracting totals, checking them against the bookkeeping reports, and completing the online return with a higher degree of confidence.

This workflow directly addresses the most common sources of error: missing income, duplicated expenses, miscategorised costs, and inconsistent figures that cannot be reconciled to bank statements.

What “more frequent reporting” might feel like for Self Assessment taxpayers

Even if 2024/25 does not require you to submit quarterly Self Assessment updates in the same way that VAT may be submitted quarterly, the concept is worth understanding because it affects how you prepare.

More frequent reporting, at a practical level, means that instead of only producing a profit figure once per year, you may produce interim profit estimates multiple times. These may be used to project tax liabilities, manage cash flow, and identify issues earlier. Even when not mandatory, many taxpayers adopt this approach because it reduces stress and surprises.

It is important to understand that interim numbers are often estimates. You may not have every invoice recorded, you may have timing differences, and certain adjustments are naturally annual (for example, the annual calculation of private use proportions). The goal of frequent reporting is not perfection; it is earlier visibility.

For 2024/25, adopting a quarterly review routine can make your final return easier, because you have already dealt with most classification issues and have a clearer understanding of your tax position well before the January deadline.

Potential impacts on common Self Assessment scenarios

Different taxpayers will experience digital tax reporting differently. Here are several common scenarios and the likely practical impact in 2024/25.

Sole traders and freelancers

If you are a sole trader, digital record keeping can reduce the burden of tracking small expenses, recurring subscriptions, and mixed-use costs. The most noticeable change is that you can view your year-to-date profit at any time, which helps you plan for tax and avoid overspending.

For freelancers with multiple clients, digital invoicing tools can also reduce late payments and make it clearer which invoices have been settled. When it comes time to file, you are less likely to miss income, because the invoice list is already complete and reconciled to bank receipts.

In 2024/25, a particularly helpful benefit is the ability to tag expenses that are “grey areas” for later review. For example, training costs, use of home, travel, and equipment can have nuanced rules. Recording them consistently during the year and adding notes can make year-end decisions easier and more defensible.

Landlords with one or more properties

Landlords often have transaction-heavy records: rent, agent fees, repairs, insurance, safety certificates, utilities for periods of void, and sometimes financing costs depending on circumstances. Digital reporting tools can help separate costs by property and generate a clear summary for the property pages of the return.

For 2024/25, a key practical improvement is documentation: attaching invoices for repairs or improvement works to transactions helps you later decide whether something is a revenue expense or capital expenditure. Those distinctions matter for tax and can be difficult to reconstruct months later.

Another impact is the management of irregular income, such as holiday lets or short-term rentals, where platforms provide statements and fees. Digital tools can import or record these systematically rather than relying on manual totals.

Side hustles and platform income

Platform income can be messy because payments may be net of fees, may include tips, and may arrive in irregular patterns. Digital record keeping can help you track gross income and fees separately, which supports accurate reporting.

In 2024/25, the impact is mainly about clarity. Many people under-report or over-report platform income because they rely on bank deposits without understanding what has been deducted. A better digital trail helps you match platform statements to bank receipts and avoid errors.

Higher earners with multiple income sources

If you are in Self Assessment because of high income, dividends, savings interest, or complex affairs, digital tax reporting may not change your life in a dramatic way, but it can still help. For example, tracking charitable donations, pension contributions, and certain relief-eligible investments in a structured way can simplify the return and reduce the risk of missing reliefs.

In 2024/25, the main impact is organisational. A digital folder system or personal finance tool can capture documents throughout the year so that you are not searching for statements when it is time to file.

What could change in what you submit: totals, categories, and supporting information

A frequent worry is that digital reporting means you will have to submit more detail to HMRC, such as line-by-line transactions. For most Self Assessment taxpayers in 2024/25, the return still focuses on totals by category. However, digital systems can make the boundaries between “submitted data” and “supporting records” feel thinner.

Even if you do not upload every receipt, you are more likely to have them readily available. That matters because HMRC can ask questions after you file, and you are expected to be able to support your figures. If you have digital records with clear links to evidence, responding becomes easier.

Another subtle shift is the use of standardised categories. Digital tools encourage you to map expenses into categories that resemble tax return categories. This can reduce the mismatch between your bookkeeping totals and the return’s boxes. In turn, that reduces the chance of entering an incorrect figure simply because your internal categories do not match the return.

Reduced errors, but also fewer excuses: the compliance angle

Digital tax reporting is often sold as a convenience, and it can be. But it also raises the bar for what counts as reasonable care. If tools exist that make it straightforward to reconcile bank accounts, capture receipts, and classify transactions, it is harder to argue that careless mistakes were unavoidable.

In 2024/25, this means you should take extra care with common pitfalls:

Mixing personal and business spending. Digital record keeping works best when your transactions are clean. If you use one bank account for everything, you must be disciplined in classifying and excluding personal spending.

Claiming expenses without evidence. A digital system that allows you to attach receipts makes it easier to keep proof, so you should use that feature where possible.

Over-claiming mixed-use costs. Phone, internet, vehicle costs, and home office costs often have private use elements. Digital tools can help you apply consistent proportions and keep notes explaining your method.

Misclassifying capital items. Equipment and property-related works can be tricky. Digital notes and attached invoices help you treat items correctly and explain your reasoning if asked later.

The upside of digital systems is fewer errors. The downside is that if you ignore the tools and file inaccurate returns, it may be easier for discrepancies to stand out.

Practical preparation for 2024/25: a checklist you can act on now

Whether you are fully embracing digital tax reporting or simply trying to make your Self Assessment easier, the best approach is to make small improvements early in the tax year. Here is a practical checklist tailored to 2024/25.

Open or use a dedicated business bank account if you are self-employed. Even if it is not legally required for sole traders, it makes record keeping dramatically simpler.

Choose a record-keeping method you will actually maintain. If full accounting software feels too heavy, use a lightweight app or a structured spreadsheet with consistent categories, but ensure you can reconcile totals to bank statements.

Decide on your categories early. Set up expense categories that map cleanly to Self Assessment categories. This reduces confusion at filing time.

Capture receipts as you go. Use a phone scanner app or your bookkeeping tool’s receipt capture feature. Aim to attach evidence to the transaction, not store it separately where it might be lost.

Schedule a monthly or quarterly review. Put a recurring reminder in your calendar to review uncategorised transactions, check invoices, and reconcile your bank.

Track tax set-asides. Even a simple approach like moving a percentage of income to a savings account can help you meet January payments. Your profit estimate is easier to trust when your books are up to date.

Keep notes for judgement calls. When you are unsure about an expense, record why you believe it is allowable. That note can be invaluable months later.

What to expect when it is time to file: smoother, but still a review is essential

Digital record keeping can tempt people into thinking that the tax return will “do itself.” In reality, the best results come when you use digital tools to handle the arithmetic and organisation, and you still apply human judgement to the tax rules.

When you prepare your 2024/25 return, a good process looks like this:

First, reconcile your records. Ensure that your bank transactions are fully captured and that the totals match reality. Unreconciled books can produce misleading profit figures.

Second, review categories for reasonableness. Compare to prior years if applicable. If travel costs doubled, is there a real reason, or have personal items been miscategorised?

Third, check for year-end adjustments. Certain items are not simply “whatever was paid.” Consider private use, capital allowances if relevant, and any accrual-style issues depending on your accounting basis.

Fourth, consider reliefs and allowances. Digital reporting helps you get income and expense totals right, but it does not automatically ensure you claim everything you are entitled to.

Finally, file with confidence. Enter totals carefully, keep a copy of the submitted return, and retain your records in case of queries.

Does digital tax reporting change deadlines or penalties for 2024/25?

For most Self Assessment taxpayers, the practical deadlines for the 2024/25 return remain those you already know: the tax year ends on 5 April 2025, and the online filing deadline and main payment deadline sit in January 2026. Digital tax reporting does not inherently change those dates for the 2024/25 return.

However, digital record keeping can affect your risk profile in two ways. First, if you keep records well, you are less likely to file late because you will not be scrambling to find information. Second, if you are disorganised, the transition pressure of digital systems can make you more likely to procrastinate and miss deadlines.

In other words, digital reporting itself is not a penalty system, but it changes the ease with which you can comply. Better systems reduce the chance of lateness and error, and that indirectly reduces penalties.

Will HMRC’s online services feel more “integrated” in 2024/25?

Many taxpayers notice that HMRC’s online environment has gradually become more account-based and service-oriented. Rather than just “logging in to file a return,” you increasingly interact with a personal or business tax account, view messages, and manage details.

In 2024/25, you may find that the experience feels more connected to digital records, even if you are not directly uploading them. For example, you may be prompted to review details, confirm information, or use digital prompts and checks that encourage accuracy.

This shift matters because it reinforces the idea that your Self Assessment return is not an isolated annual event. It sits within a broader digital account environment where HMRC expects accurate, timely information and may use prompts to reduce common errors.

Key benefits for 2024/25 filers: time, accuracy, and less anxiety

If you adopt more digital record keeping during 2024/25, the benefits you are most likely to feel are practical rather than theoretical.

You can complete your return faster because you are not building totals from scratch.

You reduce errors because you are not manually retyping hundreds of transactions, and because your records are reconciled and categorised.

You gain visibility into your tax position during the year, which helps you plan. Many people find that the “unknown tax bill” is the most stressful part of Self Assessment. Digital bookkeeping turns that unknown into an estimate you can monitor.

You have better evidence. If you ever need to justify your figures, you can do so quickly and calmly.

These benefits compound. A tidy 2024/25 system is also a tidy 2025/26 system, and the work you do now reduces future friction.

Common misconceptions to avoid

Digital tax reporting comes with myths that can lead to poor decisions. Here are a few worth clearing up for 2024/25.

Myth: “If I use software, I do not need receipts.” In reality, software helps you store and organise evidence, but it does not replace it.

Myth: “Digital reporting means HMRC sees my bank transactions automatically.” Bank feeds in bookkeeping software are for your benefit; they are not the same as giving HMRC direct access to your bank data through your bookkeeping tool.

Myth: “Quarterly reporting means I will pay tax quarterly.” More frequent reporting does not automatically change payment rules, though it may affect how you plan for them.

Myth: “Digital is only for big businesses.” Many of the biggest benefits apply to small businesses and landlords because they reduce manual admin.

How to choose a digital approach that fits your situation

The “right” approach for 2024/25 depends on complexity, volume, and your comfort with systems.

If your transactions are low volume and simple, a structured spreadsheet with disciplined receipt storage and monthly bank reconciliation may be sufficient. The key is structure: consistent categories, clear links to evidence, and a process that you follow.

If your transactions are moderate or you invoice clients regularly, lightweight bookkeeping software can save time and reduce errors. It can also help with chasing invoices and tracking cash flow.

If your situation is complex, or you want to minimise effort long term, a full accounting package may be worthwhile. The time you save at filing season can outweigh the learning curve.

If you work with an accountant, ask how they prefer to receive information. A digital system that allows your accountant to access reports or exports can streamline the year-end process and reduce fees caused by messy records.

Conclusion: what digital tax reporting means for your 2024/25 Self Assessment

For the 2024/25 tax year, digital tax reporting is less about a sudden change to what you must file and more about a steady shift in how you prepare to file. Most taxpayers will still submit a familiar annual Self Assessment return, with totals for income and expenses. But the methods used to generate those totals are changing, and the benefits of being more digital are becoming harder to ignore.

If you adopt digital record keeping during 2024/25, you are likely to file more accurately, spend less time hunting for receipts and statements, and feel more in control of your tax position throughout the year. You will also be better prepared for any future changes that increase the role of software and more frequent reporting. If you ignore the trend and continue with disorganised records, you may still be able to file, but the process is likely to be more stressful and riskier in terms of errors.

The smartest approach for 2024/25 is to treat digital tax reporting as a practical upgrade rather than a bureaucratic burden. Build a simple routine, keep your records tidy, review them periodically, and make the filing season a confirmation exercise rather than a reconstruction project. That shift, more than any single policy headline, is what will most affect UK Self Assessment filings in the 2024/25 tax year.