Question 1

Can I Test This as a Beta User?

Accepted Answer

Yes, if: 
 • You’re a UK resident 
 • You’ve filed a Self Assessment return 
 • You have an NI number 
 • You’re up to date on tax

Sign up for MTD Beta Testing (https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax)

Some exclusions apply (e.g., MPs, bankrupts, ministers of religion, foster carers).

NOTE: Beta testers face no penalties for late quarterly submissions, but the Final Declaration must be on time.

Question 2

What are Digital Records?

Accepted Answer

You don’t need to scan/store invoices, but each individual transaction must be recorded digitally - no summaries.

HMRC Guidance on Digital Records (https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/create-digital-records)

Question 3

How is Income & Expense Reported?

Accepted Answer

If under £90K turnover, you may submit three-line accounts (income, expenses, net profit).

Jointly-owned rental properties: report income quarterly; expenses at year-end.

WATCH OUT: You must submit separate updates for each business activity. So if you're a sole trader and a landlord, that’s 8 updates a year. Two trades? 12 updates!

Question 4

Is The Business of Music community free?

Accepted Answer

Yes it is! We believe passionately that all musicians, irrespective of their financial means, need access to good quality business, finance and tax advice. For now, we're able to offer the current service for free. Eventually we may charge a nominal subscription amount to ensure we can continue to provide excellent resources to all musicians.

Question 5

How does Musicians' Tax Advisor relate to Orpheus Accounting Ltd?

Accepted Answer

Orpheus Accounting Ltd is our full service accountancy and tax practice for engaged clients. We use Musicians' Tax Advisor as the education and community part of our business. We communicate with you from both domains but once you become a client of ours, you'll notice that our communications for all matters specific to your business, will come from Orpheus Accounting Ltd.

Question 6

What is the Phased Rollout?

Accepted Answer

• 2026: >£50K gross income 
 • 2027: >£30K 
 • 2028: >£20K

Question 7

I’m Just Starting Out as a Freelancer, When Do I have to Join?

Accepted Answer

You’ll be required to comply from the start of your third tax year after exceeding the threshold.

Question 8

What Happens to the Current SATR?

Accepted Answer

Replaced by the Final Declaration - a digital tax return pre-filled with data from quarterly updates.

You’ll still add info like: 
 • Bank interest 
 • PAYE income 
 • Pension contributions 
 • Claim reliefs

Final Declaration is due by 31 January, as with the current Self-Assessment system.

Question 9

Can I rely on your advice?

Accepted Answer

Yes, we are licenced and regulated tax advisors. We are answerable to our membership bodies for the quality of our service and hold indemnity insurance with reputable providers. If for any reason, we believe we not best placed to give you advice on your particular circumstance – we will say so and explain why.

Question 10

What is Considered Compatible Software?

Accepted Answer

You must use HMRC-recognised software or bridging tools.

Check out our blog on choosing the right software (https://www.musicianstaxadvisor.org/post/making-tax-digital-mtd-for-musicians-the-best-software-options-for-2025)

HMRC List of Compatible Software (https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax)

Question 11

What’s the Penalty System?

Accepted Answer

MTD-ITSA brings in HMRC’s points-based penalty system:

• £200 fixed penalty when threshold is met 
 • Additional £200 for every subsequent missed submission 
 • Points expire after 24 months if compliant 
 • You must stay compliant for 12 months to reset

Question 12

Can I join the webinars anonymously?

Accepted Answer

Yes, as per Zoom’s functionality you’ll be able to hide your name on joining.

Question 13

Can I Use a Spreadsheet?

Accepted Answer

Yes, but only with bridging software and digital links in place. A standalone spreadsheet won’t meet the requirements.

Question 14

Can I ask questions in the webinars?

Accepted Answer

Absolutely! We encourage you to use these webinars to ask questions and gain increased understanding of your tax situation. But do note, that we won’t be able to address specific issues unique to you as part of these sessions.

Question 15

What Does ‘Qualifying Income’ Mean?

Accepted Answer

*****TBD****

Check your qualifying income (https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax)

Question 16

What Are the Reporting Deadlines?

Accepted Answer

You may use either:

• Tax year quarters: 
    • 6 Apr–5 Jul → Due 7 Aug 
    • 6 Jul–5 Oct → Due 7 Nov 
    • 6 Oct–5 Jan → Due 7 Feb 
    • 6 Jan–5 Apr → Due 7 May

• Or calendar quarters if elected: 
    • Apr–Jun, Jul–Sep, etc.

Question 17

What if I am not happy with the advice you give?

Accepted Answer

In the first instance we would always ask that you take up your complaint with us – we will do our best to resolve it quickly and satisfactorily. If you are still not satisfied, you are requested to contact our licencing bodies, per our terms and conditions

Question 18

What areas of tax do you not give advice on?

Accepted Answer

We don’t give you advice on tax credits, benefits or council tax. If you have a query about one of these taxes you may well find you can access support via the following links:
TaxAid - help with a tax problem if HMRC can't sort it out(https://taxaid.org.uk/)
Home Page - Tax Help for Older People (taxvol.org.uk)(https://taxvol.org.uk/)
Low Incomes Tax Reform Group | A voice for the unrepresented (litrg.org.uk)(https://www.litrg.org.uk/)

Question 19

Am I Exempt?

Accepted Answer

Groups currently exempt from MTD-ITSA include:

• Partnerships 
 • Trusts and estates 
 • Non-UK residents 
 • Foreign entertainers with no UK qualifying income 
 • Those with qualifying care relief (e.g. foster carers) 
 • Taxpayers with no National Insurance number 
 • Others (see full HMRC list)

Apply for an exemption (https://www.gov.uk/guidance/apply-for-an-exemption-from-making-tax-digital-for-income-tax)

Question 20

How will I access the Business of Music Expert Speaker sessions?

Accepted Answer

In advance of the Expert Speaker sessions, you will be sent a link to join the session Live. If you cannot make the live attendance, where possible, we will share the recording via email after the session has taken place.

Question 21

Is HMRC Providing Software?

Accepted Answer

No. HMRC may work with third parties to ensure free basic options, but will not create its own.

WATCH OUT: Some software covers only quarterly updates or the Final Declaration - not both. Choose wisely.

Question 22

What other resources are available within the Business of Music Community?

Accepted Answer

Along with posting regular tips on our social pages on Instagram (https://www.instagram.com/musicianstaxadvisor/)and LinkedIn,(https://www.linkedin.com/in/sinead-pratschke-3a57201a/) sharing advice and guidance in our Blog (https://www.musicianstaxadvisor.org/blog)and hosting Expert Speaker sessions; we also provide a series of paid on-demand videos, if required.

Musicians' Tax Advisor

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