Making Tax Digital for Income Tax: What Locum GPs Need to Know
From April 2026, self-employed GPs earning over £50,000 must comply with Making Tax Digital for Income Tax (MTD for ITSA) — quarterly digital submissions replace the annual Self Assessment return. Here's what changes, who is affected, and how to prepare.
MTD for ITSA is now live for incomes over £50,000 from April 2026. If you are a full-time locum GP, the mandate applies to you now — quarterly digital submissions to HMRC replace the annual Self Assessment return. The sooner you set up compatible software, the less disruptive this will be.
A significant change to how self-employed people report their income to HMRC has rolled out from April 2026. Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) affects the majority of active locum GPs.
What Is MTD for ITSA?
Making Tax Digital for Income Tax is HMRC’s programme to replace the traditional annual Self Assessment tax return with quarterly digital submissions using HMRC-compatible software. The aim is to reduce errors and make tax administration more real-time.
Under MTD for ITSA, you will submit a summary of your income and expenses to HMRC four times a year instead of once, plus a final end-of-year declaration.
Who Is Affected and When?
| Income threshold | Mandation date |
|---|---|
| Self-employed income > £50,000/year | April 2026 (now live) |
| Self-employed income > £30,000/year | April 2027 |
| Self-employed income > £20,000/year | April 2028 (proposed) |
The thresholds refer to gross self-employed income — not profit. Most active full-time locum GPs are in the first wave.
If you earn over £50,000 from locum work, you need to be MTD-ready by April 2026.
What MTD for ITSA Requires
-
Compatible software — You must use HMRC-approved MTD software to keep digital records and submit quarterly updates. Spreadsheets alone are not sufficient (though some bridging software can work alongside them). Options include FreeAgent, QuickBooks, Xero, and several accountant-managed platforms.
-
Quarterly submissions — Four updates per tax year, due approximately one month after each quarter ends:
- Quarter 1: 6 April – 5 July → due 5 August
- Quarter 2: 6 July – 5 October → due 5 November
- Quarter 3: 6 October – 5 January → due 5 February
- Quarter 4: 6 January – 5 April → due 5 May
-
End-of-period statement (EOPS) — A final annual declaration confirming your figures, made after the tax year ends.
-
Digital record-keeping — Income and expense transactions must be recorded digitally from the point of receipt (i.e. you can’t batch-enter three months of receipts on the last day of the quarter).
What Stays the Same
- Your tax liability is still calculated the same way — MTD changes how you report, not how much you pay
- The 31 January payment deadline for any balancing payment remains
- Payments on Account continue as before
- The allowable expenses for locum GPs are unchanged
How to Prepare
Step 1: Check if you’re in the first wave. If your gross locum income has exceeded or is likely to exceed £50,000 in 2024/25 or 2025/26, you will be mandated from April 2026.
Step 2: Choose MTD-compatible software. Speak with your accountant (if you have one) first — many practices will handle submissions on your behalf using their own software. If you manage your own accounts, compare tools like FreeAgent, QuickBooks Self-Employed, or Xero. Some are specifically designed for sole traders and handle quarterly submissions with minimal effort.
Step 3: Start keeping digital records now. Don’t wait until April 2026. Getting into the habit of logging income and expenses digitally each week makes the quarterly submissions straightforward. The expenses tracker on this site can help you track categories in the meantime.
Step 4: Register for MTD. You will need to sign up for MTD for ITSA through your HMRC online account or via your software/accountant before your mandation date. HMRC is expected to send direct communications to affected taxpayers.
Voluntary Sign-Up
HMRC has a voluntary sign-up programme running now. If you are already organised with your records and want to get ahead of the change, you can join MTD for ITSA voluntarily. This is particularly useful if your accountant is already on a compatible platform.
Penalties Under MTD
MTD for ITSA introduces a new points-based late submission penalty system. You accumulate a penalty point for each missed quarterly submission. After reaching a threshold (four points for quarterly filers), a £200 financial penalty applies. Points reset after a period of compliance.
Late payment penalties remain separate and mirror the existing Self Assessment regime.
Key Takeaways
- Most full-time locum GPs will be in the first wave (April 2026, income > £50,000)
- The threshold drops further in 2027 and 2028, catching virtually all self-employed GPs
- You need MTD-compatible software — not just a spreadsheet
- Quarterly submissions replace the annual return; the tax calculation itself is unchanged
- Act now: choosing software and building digital record habits takes time
For MTD-specific guidance for your situation, speak with an accountant experienced in NHS/locum GP accounts. This article was updated May 2026 to reflect that the mandate is now live for incomes over £50,000 — check gov.uk for any subsequent changes.