Guides · Updated 13 October 2026
Making Tax Digital for locums. What changes, and when.
Making Tax Digital for Income Tax changes how self-employed people report to HMRC. If you locum as a sole trader, it is likely to apply to you in the next two years, if it does not already.
What it is
Making Tax Digital for Income Tax is HMRC's move from one tax return a year to digital records kept through the year. You keep your income and expenses in software, send HMRC a summary every quarter, and submit your tax return through the same software after the tax year ends.
When it applies to you
It depends on your qualifying income. That is your total income from self-employment and property before expenses, not your profit. HMRC works it out from your Self Assessment return.
- Over £50,000 in the 2024 to 2025 tax year: from 6 April 2026.
- Over £30,000 in the 2025 to 2026 tax year: from 6 April 2027.
- Over £20,000 in the 2026 to 2027 tax year: from 6 April 2028.
How you find out, and how you join
HMRC writes to people it expects to be affected. If no letter arrives it is still up to you to check, because the duty is yours either way.
To sign up you need to be registered for Self Assessment and to have sent a tax return in the last 2 years. You sign up with HMRC first, then connect the software you are going to use. Many locums ask their accountant to do both.
What you have to do
- Keep digital records of every piece of income and every expense.
- Send a quarterly update through compatible software. The deadlines are 7 August, 7 November, 7 February and 7 May.
- Submit your tax return through the software after the end of the tax year.
The quarterly updates are summaries, not tax returns. They give HMRC totals for each kind of income and expense. HMRC does not receive your individual invoices or receipts, and you do not pay tax four times a year because of them.
Example: The 2026 to 2027 tax year, standard periods
- 6 April to 5 July: Update due by 7 August 2026
- 6 April to 5 October: Update due by 7 November 2026
- 6 April to 5 January: Update due by 7 February 2027
- 6 April to 5 April: Update due by 7 May 2027
Each update covers the year so far, which is why every period starts on 6 April.
What a quarterly update is like
Each update covers the year so far, so a mistake in one quarter is put right in your records and flows through to the next update. You do not need to make accounting or tax adjustments before sending one.
The standard periods follow the tax year and start on 6 April. If your accounts run from 1 April to 31 March you can choose calendar periods in your software, as long as you do it before your first update of the year. The deadlines are the same.
If you miss a deadline
HMRC uses penalty points. A late quarterly update earns a point, and reaching 4 points brings a £200 penalty. HMRC has said it will not apply points for late quarterly updates during the 2026 to 2027 tax year, the first year of the scheme. Late tax returns and late payment are treated separately.
Who is exempt
You may be exempt if you are digitally excluded, which means you cannot reasonably use digital tools. If you are exempt you carry on sending a Self Assessment return in the usual way. Partnerships are not included yet. GOV.UK has the full list and how to apply.
What it means for a locum
The work is in the record keeping. Every session needs to be recorded with its date, the workplace and the fee, and every expense needs a record too. Doing that from memory at the end of a quarter is where mistakes come from. Doing it on the day takes seconds.
Where Locbase fits
Locbase is not Making Tax Digital software. It does not send anything to HMRC and it does not work out your tax.
What it does is keep the record that everything else depends on: each session and its fee, each invoice and when it was paid, your mileage and your expenses with their receipts. When you or your accountant need the figures, Locbase exports them for the tax year in one file.
Questions
Does Making Tax Digital apply to locums?
It applies to sole traders by income, whatever their profession. If your self-employed income before expenses is over the threshold for the year, it applies to you.
What happens if I miss a quarterly update?
A late update earns a penalty point, and 4 points bring a £200 penalty. HMRC has said it will not apply points for late quarterly updates in the 2026 to 2027 tax year.
Do the quarterly updates have to be exact?
They are summaries of your records for the year so far. If you correct a record later, the next update carries the correction.
Is Locbase Making Tax Digital software?
No. Locbase keeps your sessions, income, mileage and expenses and exports them. Your accountant or your Making Tax Digital software sends the updates to HMRC.
Read next
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This guide is general information, not tax or legal advice. Check with HMRC or a qualified accountant. Sources: GOV.UK: find out if and when you need to use Making Tax Digital for Income Tax; GOV.UK: send quarterly updates; GOV.UK: use Making Tax Digital for Income Tax.