MTD for Income Tax changes how self-employed doctors, dentists and landlords report to HMRC. Here's who it affects and when.
Instead of one self-assessment return a year, affected individuals must keep digital records and send quarterly summary updates to HMRC using compatible software, followed by a final year-end declaration.
Self-employed individuals and landlords (including doctors and dentists with locum/associate income or rental property) whose combined qualifying income is above the relevant threshold. HMRC has been phasing this in by income band — always check the current threshold and start date for your income level on GOV.UK, as the rollout has been staged over several years.
One self-assessment tax return submitted annually, often via an accountant, sometimes from a spreadsheet or paper records.
Digital record-keeping throughout the year using compatible software, four quarterly updates submitted to HMRC, plus a final declaration to confirm and adjust the year's figures.
You can still use a spreadsheet for records if you use "bridging software" to submit the figures to HMRC in the required digital format — but many self-employed clinicians find dedicated accounting software simpler in practice.
PAYE employment income is generally not itself in scope for MTD for Income Tax — it's your self-employed (locum) and property income that counts toward the qualifying income threshold. Check current guidance for exactly what's included in the calculation.
HMRC operates a penalty points system for late submissions under MTD, similar in concept to penalty points for speeding — accumulate enough points within a period and a financial penalty follows. Check current HMRC guidance for the specific point thresholds and penalty amounts.