MTD for Locum Doctors
We help locum doctors prepare for Making Tax Digital for Income Tax by reviewing income thresholds, setting up digital records, choosing compatible software, organising expenses and managing quarterly updates.
MTD changes how many locum doctors will keep records and report income.
Making Tax Digital for Income Tax is being introduced in phases for sole traders and landlords. For locum doctors, this may apply where self-employed locum income, property income or both exceed the relevant qualifying income threshold.
Paper summaries and year-end spreadsheets may no longer be enough.
If MTD applies, records must be kept digitally using compatible software or a compliant digital record system.
HMRC will expect quarterly income and expense updates.
Quarterly updates are not full tax returns, but they need to be submitted from digital records and kept reasonably up to date.
Agency work, private shifts and expenses need a clear record system.
Locum doctors often have mixed records, agency statements, reimbursed expenses and professional costs that should be organised before MTD starts.
We check whether MTD applies, then set up the records and reporting route.
The starting point is your qualifying income. We then review software, record keeping, quarterly update process, expenses, year-end adjustments and how the final tax return will be completed.
Threshold review
Check self-employment and property income against the phased MTD thresholds.
Software route
Choose compatible software or a digital record process that suits locum doctor records.
Record design
Separate income, expenses, travel, professional fees, equipment and mixed-use costs.
Quarterly updates
Prepare a process for sending quarterly income and expense updates to HMRC.
Final position
Complete year-end adjustments, Self Assessment and tax payment review.
When MTD may apply to locum doctors.
The start date depends on qualifying income from self-employment and property income, based on the relevant Self Assessment tax return.
From 6 April 2026
MTD applies if qualifying income on the 2024/25 tax return is more than £50,000.
Over £50,000From 6 April 2027
MTD applies if qualifying income on the 2025/26 tax return is more than £30,000.
Over £30,000From 6 April 2028
MTD applies if qualifying income on the 2026/27 tax return is more than £20,000.
Over £20,000MTD support for locum doctors before and after mandation.
We can provide a simple readiness review, set up digital records, manage quarterly updates or combine MTD support with annual Self Assessment.
MTD readiness review
Review of qualifying income, start date, current records and whether MTD applies to your locum or rental income.
Start enquiry →Digital records setup
Setup of digital income and expense categories for locum shifts, agency statements, invoices and professional costs.
Start enquiry →Quarterly update support
Help preparing and submitting quarterly updates from digital records, with a practical review process.
Start enquiry →Software and bookkeeping
Selection and setup of compatible software, bank feed structure, receipt capture and expense coding.
Start enquiry →MTD and Self Assessment
Year-end adjustments, final tax position, payments on account and Self Assessment filing after quarterly updates.
Self Assessment →Exemption and HMRC letters
Review where HMRC has written to you about MTD, or where you believe exemption or deferral may be relevant.
HMRC support →MTD is not just annual tax return work moved online.
The main change is timing. Instead of waiting until after the tax year to organise the figures, locum doctors within MTD will need a digital record process during the year, with quarterly updates submitted to HMRC.
The quarterly update process works best when income and expenses are coded correctly from the start. This reduces year-end clean-up and makes the Self Assessment position easier to finalise.
Quarterly updates are not the same as full tax returns.
They are periodic updates of income and expenses from digital records. The final tax position still needs review after the tax year.
Doctors with locum and rental income need combined threshold review.
Qualifying income for MTD may include both self-employment and property income. A doctor below the threshold from locum work alone may still be affected if rental income is added.
Messy records make MTD more difficult.
Bank feeds, receipts and agency statements need to be coded consistently. Leaving everything until the year end undermines the purpose of MTD.
Some people may be able to claim exemption, but it must be checked.
Exemption is not assumed just because software is inconvenient. The facts should be reviewed before relying on an exemption position.
What we usually need for an MTD readiness review.
The exact records depend on your locum income, property income, current software and whether HMRC has already written to you.
Locum income, agency statements, invoices and property income figures for the relevant tax years.
Recent Self Assessment tax returns and computations so qualifying income and MTD start date can be checked.
Current bookkeeping software, spreadsheets, bank feeds or record systems used to track income and expenses.
Professional fees, indemnity, travel, courses, equipment and admin costs to design practical expense categories.
Any HMRC letter about Making Tax Digital, including the tax year and date by which you are expected to start.
A clear process for MTD setup and ongoing support.
We first check whether MTD applies, then prepare the software, record categories and reporting process.
MTD threshold review
We check qualifying income from self-employment and property income to confirm whether and when MTD applies.
Software and records setup
We help set up compatible software, digital categories, bank feeds and receipt capture where required.
Quarterly update process
We agree who will keep the records, who will review them and who will submit quarterly updates to HMRC.
Year-end finalisation
We review adjustments, claims, tax calculation, payments on account and Self Assessment filing at the end of the year.
Common questions from locum doctors about Making Tax Digital.
These answers are general guidance only. The correct position depends on income level, income type, tax year and HMRC status.
Does MTD apply to locum doctors?
It can apply if a locum doctor has qualifying income from self-employment, property income or both above the relevant threshold for the phased start date.
Is PAYE locum income included for MTD?
MTD for Income Tax is aimed at self-employment and property income. PAYE income is different, but the overall Self Assessment position should still be reviewed where income is mixed.
Do quarterly updates replace the tax return?
No. Quarterly updates are sent during the year, but the final tax position still needs to be completed after year end with any adjustments and claims.
Can you manage MTD updates for me?
Yes. We can help with setup, bookkeeping, quarterly updates and final Self Assessment filing depending on the level of support needed.
Need to prepare for MTD as a locum doctor?
Send a short summary of your locum income, property income, current record keeping and whether HMRC has written to you. We will confirm the likely MTD position and next step.