This guide summarises the key points about Making Tax Digital (MTD) for income tax self assessment based on the latest guidance.
Making Tax Digital will go live on LocumDeck on 6 April 2026. Log in now to learn more and we’ll email you to keep you updated. For the latest podcasts and discussions on Making Tax Digital, join our community.
Making Tax Digital: What and when
What is Making Tax Digital (MTD) for income tax?
MTD is a system that requires you to digitally record your income and expenses and send updates to HMRC four times a year (quarterly), rather than just once a year through a self-assessment tax return.
Tax rules are not changing – only the way you report them.
When does MTD start for me?
It depends on your annual self-employment income (locum fees and other self-employed work, like private fees, lecturing, etc.):
| Income threshold (based on previous tax year) | Start date |
| Your gross qualifying income was £50,000 or more in the 2024/2025 tax year | April 2026 |
| Your gross qualifying income was £30,000 or more in the 2025/2026 tax year | April 2027 |
If your income is below the threshold, you are not mandated yet, but you can opt in early.
How to comply: Records and software
How do I know if I need to register?
You must check your 2024/2025 tax return (filed by 31 January 31 2026). If your total gross self-employment and/or rental income is £50,000 or over, you need to register for MTD from April 2026.
HMRC may send you a letter, but it is ultimately your responsibility to check your income and register on time.
What do I need to do to prepare?: A three-step overview
If you expect to be above the income threshold, preparation boils down to three decisions:
- Step 1: Choose your filing route. Decide if you want to use all-in-one software (like Xero), keep your spreadsheets and use “Bridging software,” or have an accountant handle the technical filing for you.
- Step 2: Start digital records now. MTD requires records to be stored digitally throughout the year. If you use LocumDeck, you are already well-prepared. Your invoicing and expense data can be exported easily to any HMRC-authorised software or directly to your accountant.
- Step 3: Register. You (or your accountant) must officially sign up for the MTD service via GOV.UK before your first deadline in 2026. This is a separate step from your usual tax account.
NASGP members are eligible for a 20% discount on 123 Sheets. Read more.
What are the filing routes?
To report to HMRC, you must use HMRC-authorised software. There are three main paths:
- ‘All-in-one’ accounting software (e.g. Xero, QuickBooks etc) Best if you want one product to handle everything. These tools can automate bank transactions and receipt scanning.
- Pro tip: Use the ‘Import’ function to bulk-upload your LocumDeck fee spreadsheets once a quarter (these exports will separate your actual fee income from the NHS pension contributions)
- ‘Bridging’ software Best if you want to keep using your current spreadsheets. You maintain your records in Excel (or a LocumDeck export), and the “Bridge” securely sends report to HMRC.
- Accountant Best for delegating the technical filing. You still need to keep digital records (like in LocumDeck) to provide the data your accountant needs for their professional software.
NASGP members are eligible for a 20% discount on 123 Sheets. Read more.
HMRC resource: Find a full list of compatible software here.
Do I need a separate bank account?
It is advisable (though not mandatory) to have a separate bank account for your self-employment income and expenses.
Why it’s advised
If you use professional bookkeeping software (like Xero, Sage, or QuickBooks), these programs use a ‘bank feed’ feature. A separate account ensures the feed only imports business transactions (income and expenses), making record-keeping seamless and accurate for quarterly MTD submissions.
The NHS Pension complication
If you claim an NHS Pension, this method is less useful for reporting your income, as the bank payment received includes the employer pension contribution, which must be removed before reporting your taxable income. For this, accessing the raw income data (like the invoice breakdown from LocumDeck) is essential.
The reporting process: Quarterly and annually
How often do I report my income?
You will make four quarterly submissions and two end-of-year submissions (End of Period Statement and Final Declaration). The quarterly submissions are cumulative, meaning the second report covers 1 April to 30 September, and so on.
By default, MTD follows the standard Tax Year (6 April to 5 April the next year). However, some find it easier to report in calendar quarters (1 to 30/31). You can choose which one to use when you sign up.
| Submission Type | Period (Example using calendar month*) | Deadline |
| Quarterly Submission 1 | 1 April – 30 June | 7 August |
| Quarterly Submission 2 | 1 July – 30 September | 7 November |
| Quarterly Submission 3 | 1 October – 31 December | 7 February |
| Quarterly Submission 4 | 1 January – 31 March | 7 May |
*Quarterly submissions are cumulative, meaning the second report covers 1 April to 30 September, and so on.
What goes into the quarterly submissions?
Only your self-employed income (locum fees, private work) and associated direct expenses (e.g., professional subscriptions, medical equipment) go into these four quarterly reports.
What is the ‘final declaration’ tax return in Making Tax Digital?
The ‘final declaration’ is similar to your current annual self-assessment tax return.
It’s where you report everything else, including:
- Your final self-employment profit figures
- Your PAYE employment income (from a salaried job)
- Bank interest and dividends
- Claims for tax reliefs (e.g. pension contributions from GP SOLO forms or Type 1/2 Forms A/B).
The deadline for the final declaration remains 31 January following the tax year.
Will I have to pay tax every quarter?
No, not at the moment.
The deadlines for tax payments will remain the same: 31 January and 31 July. MTD only changes the reporting frequency, not the payment frequency.
How LocumDeck can help
How does LocumDeck fit into Making Tax Digital?
LocumDeck acts as a central digital record-keeping tool.
From 6 April it will:
- Automatically record your LocumDeck bookings and income.
- Provide updated, HMRC-aligned expense categories for your manual expense entry.
- Allow you to manually add other self-employed fees (private work, cremation fees, etc.).
- Generate the necessary quarterly data spreadsheets that can be used with bridging software or by your accountant for direct submission to HMRC.
This feature will go live for members on 6 April 2026. We’ll email you to keep you updated
For the latest news, podcasts and discussions on Making Tax Digital, join our community.
Official HMRC resources
For those who want to “see it in writing” from the source, here are the key HMRC guidance pages:
- Check if you’re move to MTD for Income Tax – Confirm your start date and income thresholds.
- Using Software for MTD – The official list of compatible software (including bridging options).
- Digital Record Keeping Rules – Detailed requirements on what data must be stored digitally.
- Exemptions – Information for those who may be “digitally excluded” due to age, disability, or location.