Making Tax Digital for Income Tax (MTDfIT) From April 2026, this new HMRC digital quarterly reporting requirement, will affect individuals with qualifying income of £50,000 or more. Last updated: 13 November 2025 The content on this page is for information only and does not constitute financial advice. Please speak to a financial advisor or tax consultant for advice on your specific circumstances. MU members have access to a dedicated tax helpline with Musicians' Tax Advisor as a benefit of membership. The Musicians' Union, in partnership with Musicians' Tax Advisor, will provide as much information and resources as we can to help prepare our freelance members in advance. What is MTD? 'Making tax digital' is the new requirement around digital record keeping, quarterly reporting, and submissions to HMRC. Why is this being done? This program is part of the UK Government's strategy to modernise and simplify the UK tax system. Who will be affected? Self-employed individuals and those with Land & Property income. We understand learning new software and adjusting to regualr reporting will have its challenges. Please review the information and resources we provide below. Digital Records: Defining a digital record for MTDfIT purposes Quarterly Reporting: Find out what you need to report and when Timeline: Phased rollout determined by your qualifying income Digital Records 1. Understand the HMRC definition of digital records and which accounting or bridging software is HMRC-approved. View HMRC guidance on choosing the right software Find software that works with Making Tax Digital for Income Tax 2. Set up and learn how to use your chosen software. 3. Start using new software for your digital record keeping (income & expenditures). View HMRC guidance on digital records 4. What if you use spreadsheets? You will need compatible bridging software to connect your spreadsheet to HMRC portals. Quarterly Reporting A primary component to this new reporting is the ongoing administration; you will need to make quarterly (every three months) digital submissions. These will be in addition to your annual tax return submission, which will now be known as your Final Declaration. These will be in addition to your annual submission, ensure you understand your individual requirements. Final Declaration (replacing SATR) will be due by 31 January. You will need to make additional updates if you have other trades and/or land & property income. View HMRC MTD step-by-step guidance Timeline From 2026: £50K+ income From 2027: £30K+ From 2028: £20K+ View HMRC MTD policy, important dates and information FAQs What is Making Tax Digital for Income Tax (MTDfIT)? Read answer Collapse answer MTDfIT is a government initiative requiring digital record-keeping and quarterly submissions for those with self employment and/or property income. Does MTDfIT impact freelance musicians? Read answer Collapse answer Yes, from April 2026, it will apply to those with qualifying income over £50,000 from self-employment and/or property income. Qualifying income relates to income before expenses. When will MTDfIT apply for self-employed musicians earning less than £50,000? Read answer Collapse answer From April 2027 MTDfIT those will qualifying income more than £30,000 will be brought in and from April 20208 that threshold drops to £20,000 Do I need to buy new software? Read answer Collapse answer You will be required to use MTD-compatible software, which broadly speaking will mean either accounting software, or, if you use spreadsheets, will mean bridging software. Note there are free software options available but HMRC will not be providing software. How is the MU helping its members prepare for Making Tax Digital for Income Tax (MTDfIT)? Read answer Collapse answer The MU is preparing video guidance starting the end of October. Webinars are currently being scheduled, to help members prepare. Check out the Musicians Tax Advisor (MTA) resource hub HERE Join the Musicians' Tax Advisor what's app group: This group is moderated by MTA but is primarily for peer support around MTDfIT. Member Only MTDfIT Video Guides This Making Tax Digital for Income Tax video guide series is available only to MU members. Watch for an introduction to the changes and practical support to help you get ready. Watch Video Series (My MU login required) Member services Tax Advice Helpline Free consultation and discounted fees on selected tax advice Read more about Tax Advice Helpline Tax Investigation Insurance Claim a fee reimbursement of up to £100,000 in the event of a HMRC investigation or dispute. Read more about Tax Investigation Insurance Personal Accident Cover Claiming financial benefits in the event of an accident at work Read more about Personal Accident Cover Financial Assistance Grants and funds you can access when you are an MU member. Read more about Financial Assistance Get MU membership today From gig players to part-time teachers and professional instrumentalists, MU members can access specialist insurance for musicians. This includes Public Liability, Instrument and Equipment Insurance, Accident Insurance, Tax Investigation Insurance, and Professional Indemnity Insurance for music teachers. Explore our member services Get public liability insurance for musicians Access expert legal support Be represented in your profession Access expert career advice, resources, and training events Connect, network, and get to know the community of musicians Learn about all membership benefits
Tax Advice Helpline Free consultation and discounted fees on selected tax advice Read more about Tax Advice Helpline
Tax Investigation Insurance Claim a fee reimbursement of up to £100,000 in the event of a HMRC investigation or dispute. Read more about Tax Investigation Insurance
Personal Accident Cover Claiming financial benefits in the event of an accident at work Read more about Personal Accident Cover
Financial Assistance Grants and funds you can access when you are an MU member. Read more about Financial Assistance