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MTD for Music Students: Do You Need to Register?

Here's a reminder of some of the content we covered in a recent session with students at the Royal Academy of Music:


Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is HMRC's new system for reporting income tax. It will gradually replace the current Self Assessment process with quarterly digital updates and a final annual submission.


A young person playing a piano

Does This Apply to Music Students?


The Key Threshold to Know

If you earn over £50,000 from self-employment (this includes teaching, gigging, session work, or online royalties), then from April 2026, you'll need to comply with MTD rules.


This includes:

  • Keeping digital records of income and expenses

  • Submitting quarterly updates

  • Completing a Final Declaration annually (in the same way we currently complete a self-assessment tax return)


What If I Earn Less Than £50,000?

This threshold probably seems a long way off as a student right now. And if your self-employed income is below £50,000, you won’t need to follow MTD rules just yet.

But, HMRC plans to expand MTD to those earning above £30,000 in April 2027 and above £20,000 from April 2028.


Typical Sources of Income

  • Private music lessons given

  • Gig fees

  • Online session work (e.g., Fiverr, SoundBetter)

  • PRS/MCPS royalties

  • Teaching via music schools or community programmes


If you receive this kind of income and it totals over £50,000 (before expenses) in the tax year 24/25, then MTD for ITSA will apply to you.



What You Should Do Now


  • Track your income to see whether you’re approaching the threshold

  • Register for Self Assessment if you haven’t already

  • Consider using simple accounting software like Xero, FreeAgent, Sage or QuickBooks to get used to digital recordkeeping



Final Note on MTD for Music Students


While MTD for ITSA might seem distant, especially if your income is currently well below the thresholds, it's vital to remember that HMRC's plans include expanding MTD to lower income brackets in the future. The threshold will drop to £20,000 from April 2028. This means that even if you're a student just starting out, getting into good habits now will save you a lot of hassle down the line. Embracing digital record-keeping and understanding the principles of MTD will put you in a strong position when the changes eventually apply to you. Don't wait until the last minute – proactive preparation is key to a smooth transition.


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