MTD for Musicians: What Changes When You Work With an Accountant?

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is set to be a significant change for self-employed musicians. Starting from April 2026, if you earned £50,000 or more (that's income before expenses) in the 24/25 tax year, you'll need to adapt to a new system that replaces the traditional annual Self Assessment.

From April 2026, self-employed musicians earning £50,000 or more in the previous tax year, will need to:

• Keep digital records

• Send quarterly reports to HMRC using a digital interface - that means accounting software or a spreadsheet + bridging tool of some sort

• Submit a Final Declaration (akin to current Self Assessment Tax Return)

This replaces the current once-a-year Self Assessment model.

How an Accountant Can Help with MTD-ITSA

We Can Recommend the Right Tools

There are so many choices out there - and you really do need to read the fine print. Should you use accounting software or will a spreadsheet + bridging software be enough for you? Does the software you want to use extend to the Final Declaration...It seems obvious, but not all of the software options do, some are just focused on keeping you compliant for the 4 quarterly submissions....

So which tool do you go for?

Tax advisors like us, who specialise in musicians, will know which platforms work best for gigging income, royalty payments, studio work and portfolio income that is so common amongst freelance musicians. Choosing wisely is even more critical if you work overseas frequently.

Provide training on your chosen MTD tools

Your accountant will want you to be competent in using whatever tool you both choose and therefore, likely to provide some sort of training on how to use it effectively.

We at Musicians' Tax Advisor have already started this with our clients, using Xero as our accounting software choice.

Starting now means the learning curve is less daunting. We encourage you to have a go with the software this year, knowing you don't have to use it to report your 25/26 income records to HMRC. And by practising now, you will have got the hang of it in plenty of time for April 2026.

We Can Manage Your Quarterly Updates

By authorising your quarterly return; your accountant can file the quarterly MTD updates on your behalf.

We'll Help You Stay Compliant

MTD introduces new penalties for late submissions and errors. Your accountant can help you meet deadlines, keep proper records, and avoid costly mistakes.

It doesn't have to be a headache

The shift to MTD for ITSA doesn't have to be a headache. By understanding the changes and leveraging the expertise of an accountant, you can ensure a smoother, more compliant tax year.

Silver Lining

It might even be a positive experience, allowing greater visibility into how your business is doing over the course of the year and building a cumulative estimate on your final tax bill.