Guides · Checked 10 October 2026

Making Tax Digital for freelance crew

Making Tax Digital for Income Tax changes how many self-employed people report to HMRC: digital records, an update every three months from approved software, and a final tax return at the end of the year.

Do you need to use it, and when?

It depends on your qualifying income: what you earn from self-employment and property before any expenses are taken off. So it’s your turnover that counts, not your profit.

For crew, that comes round quickly. 170 days at £180 is £30,600 before expenses, which is over the £30,000 line even if your profit is much lower.

What you send, and when

Each quarterly update is a running total of your income and expenses for the year so far. It isn’t a tax payment.

After the year ends, you confirm your figures and send your tax return from the same software, by 31 January as now. When you pay your tax doesn’t change: 31 January and 31 July.

HMRC uses a points system for updates sent late. Build up enough points and there’s a £200 penalty.

What to do now

• Check your turnover for 2025/26 against the £30,000 line.
• Keep your records digitally: every invoice, expense and trip.
• Choose software that’s recognised by HMRC for Making Tax Digital before you need it.

TheDayRate is building Making Tax Digital in, and we’re testing it with HMRC now, ready for April 2027. Until HMRC recognises it, you can’t use it to send your updates.

From HMRC: Find out if and when you need to use Making Tax Digital for Income Tax, Sign up for Making Tax Digital for Income Tax.

This guide is general information for people working for themselves in England, Wales and Northern Ireland, not tax advice. Last checked against HMRC’s guidance on 10 October 2026. If you’re unsure about your situation, check with HMRC or an accountant.