Making Tax Digital for Pharmacists
Written and reviewed by the Pharmacy Accountants editorial team. Last reviewed 28 July 2026.
Making Tax Digital for Income Tax changes how self-employed locum pharmacists keep records and report to HMRC. Instead of one annual return, it brings digital records and quarterly updates, phased in by income level from April 2026.
This guide explains the thresholds, the dates and who is in scope. For the returns themselves once the rules bite, our pharmacist tax returns service keeps you compliant.
What Making Tax Digital Changes
Making Tax Digital for Income Tax, or MTD ITSA, replaces the once-a-year Self Assessment habit with digital record keeping and regular updates sent to HMRC through compatible software. The tax due does not change, but the way it is recorded and reported does.
The Income Thresholds and Start Dates
The rules arrive in stages by qualifying income. They apply from 6 April 2026 for income over £50,000, from 6 April 2027 for income over £30,000, and from 6 April 2028 for income over £20,000. Income here means gross trading and property income, not profit. HMRC explains if and when you need to use Making Tax Digital for Income Tax.
Who Is in Scope and Who Is Not
MTD for Income Tax applies to sole traders and landlords, so a self-employed locum is squarely in scope once income passes the relevant threshold. It does not apply to companies, so a locum trading through a limited company is outside these particular rules, though the choice between the two has other consequences set out in locum pharmacist tax.
Getting Records Ready
Preparing means moving to software that can keep digital records and file quarterly. Because the threshold is based on gross income rather than profit, the personal allowance of £12,570 and income tax at 20%, 40% and 45% still decide the bill, while MTD decides the reporting. The income tax rates continue to apply as now.