the knowledge platform

making tax digital (income tax): what locums need to know

what mtd for income tax means in practice, who is in scope first, and how to prepare without over-engineering your admin.

The Bottom Line

  • MTD for Income Tax is about digital recordkeeping + periodic updates, not just ‘filing online’.
  • Your goal is preparation without complexity: pick a simple recordkeeping approach that scales.
  • Do not buy software in panic. First, clarify whether you are in scope and when.
  • Good admin beats fancy admin: monthly reconciliation and clean categorisation are the foundation.
  • If you are multi-stream (PAYE + locum), you want a single source of truth for the locum side.

What changes in practice (doctor edition)

The operational shift is this: instead of treating tax as an annual event, you adopt ongoing digital recordkeeping. For locums, this is actually positive — it forces clarity and reduces the January cognitive load. The risk is over-engineering. Avoid building a complex finance stack you cannot maintain during busy clinical months.

A low-maintenance preparation plan

1

1) Confirm your likely start date / eligibility

Start from the official HMRC guidance for MTD (Income Tax). Do not rely on social media summaries.
2

2) Standardise categories now

Pick a small category list you can sustain (income, travel, professional fees, accountancy, equipment, other). Consistency beats precision.
3

3) Make reconciliation a monthly habit

Your bottleneck is not software. It is your ability to keep records current.
4

4) Keep evidence attached to transactions

Receipts and notes are most valuable when attached at the time of purchase. Retro-fitting is where errors are born.

A useful mindset

Treat locum work like a small business unit. If your ‘micro-business’ books are always up to date, tax becomes admin — not stress.
SourceGOV.UK — Making Tax Digital for Income Tax: eligibility & timeline (official)
Open Link

References

GOV.UK — Check if you’re eligible for MTD for Income Tax