Does PAYE salary count towards the MTD income threshold?

Employment income is not qualifying self-employment or property income for this test.

Does MTD require quarterly tax payments?

Quarterly updates are reporting obligations; they do not by themselves create a new quarterly Income Tax payment schedule.

Some exemptions exist, including where digital use is not reasonably practicable. Check the HMRC conditions rather than assuming an exemption.

Tax & practice services

Making Tax Digital for doctors, dentists and healthcare

MTD Income Tax support for self-employed medical professionals. Check your start date, digital-record obligations and the work included in your fee.

Fixed fees, specialist healthcare accountants, and every HMRC and NHS Pensions deadline handled.

Fixed monthly fee — no surprises
Specialist in NHS pension and healthcare tax
Onboarding within 48 hours

Get my fixed-fee quote Book a free 15-min tax review

ICAEW & ACCA regulated
5,000+ clients served by ACCOTAX
Specialist healthcare accountants

Reviewed by Waqas Sagar ACA FCCA FMAAT · Last reviewed: 8 October 2026 · Updated for the 2026/27 tax year

Key takeaways

Your actual working arrangements determine the tax treatment; choosing a package does not change your employment status.
Keep records for each income source and check the official guidance linked to the questions below.
Agree the accounts, returns and advisory work you need before accepting a written fixed-fee quote.

Which accountancy support fits your income?

Start with how you are paid. Different income sources can need different accounts, returns and expense checks.

How you work	What we check	Support to explore
Employed or umbrella (PAYE)	Tax codes, eligible employment expenses and whether a tax return is needed.	Healthcare tax refund support
Genuinely self-employed	Business income and expenses, Self Assessment and MTD eligibility.	Healthcare Self Assessment service
Your own limited company	Company accounts, Corporation Tax, director income and off-payroll status where relevant.	Healthcare limited company accounts
Partnership	Practice accounts, allocated profit and each partner’s personal tax position.	Healthcare partnership accounts

Sound familiar?

Problems we fix for nurses, midwives and healthcare assistants

"I can't decide between umbrella, limited company or self-employed agency work."
"My bank shifts are on emergency tax."
"I've never claimed my NMC fees, uniform or mileage."
"I work for several employers and my tax codes are a mess."
"I do aesthetic work and don't know about VAT."

What it's costing you

Leaving it unfixed is rarely free

Overpaid tax: Unclaimed expenses and wrong tax codes mean paying more than you owe, year after year.
HMRC penalties and interest: Late returns attract automatic penalties, plus interest on tax paid late.
Lost evenings: Hours spent on forms, invoices and spreadsheets after a long shift.

General examples — your position depends on your own figures.

How we solve it

What we actually do for you

Refund claims

We check what you've overpaid and claim it back from HMRC.

Agency structure advice

A clear comparison of the ways you can be paid.

Self Assessment

Your return filed correctly, with every allowable expense.

Aesthetic VAT check

We confirm whether your treatments are exempt or standard-rated.

How we help

Eligibility check

Review qualifying self-employment and property income, HMRC notices and potential exemptions.

Digital setup

Select compatible software and establish complete income and expense records.

Quarterly updates

Agree who maintains records, reviews figures and submits the required updates.

Annual tax reporting

Keep the year-end tax calculation and other income sources connected to the digital process.

What to know before you decide

MTD is based on qualifying income, not profit

MTD for Income Tax starts in stages: from 6 April 2026 for qualifying income over £50,000, from 6 April 2027 for over £30,000, and from 6 April 2028 for over £20,000 under the published rollout. Qualifying income is broadly gross self-employment and property income, not employment salary or profit after expenses. The reference tax return and HMRC eligibility guidance matter; do not decide solely from this year’s take-home pay. Partnership income is not currently brought into this rollout; a partner may still have separate qualifying self-employment or property income.

Bookkeeping & Making Tax Digital for Doctors & Healthcare Professionals

Quarterly updates do not replace the annual tax calculation

Digital records and quarterly reporting change the workflow, but you still need to finalise the year and account for other relevant income. Review how agency deductions, practice statements and rental receipts enter the software. Agree responsibility for correcting missing or miscoded transactions before the update deadline and confirm whether extra software or reporting work changes your fee.

Bookkeeping & Making Tax Digital for Doctors & Healthcare Professionals

Your questions answered

What software do I need?

Making Tax Digital (MTD) requirements mean many professionals will need MTD-compatible accounting software. From April 2026, this applies to individuals with qualifying income over £50,000. Medical.Accountants works with major cloud-based platforms to streamline your bookkeeping. We recommend the most suitable software based on your practice size and complexity.

Check the official guidance · www.gov.uk Want us to check this for you? Get a free review →

What are quarterly updates?

Quarterly updates are digital submissions of income and expenses required under Making Tax Digital for Income Tax. These will be mandatory for qualifying individuals from 6 April 2026. They provide HMRC with a regular summary of your business performance. Medical.Accountants will manage these submissions to ensure your practice remains compliant.

Check the official guidance · www.gov.uk Check the official guidance · www.gov.uk

Help with this question: Bookkeeping & Making Tax Digital for Doctors & Healthcare Professionals

Want us to check this for you? Get a free review →

What happens if I miss a quarterly update?

MTD for Income Tax uses a points-based late-submission regime. HMRC will not award points for missed quarterly updates in the 2026/27 tax year, but you must still submit the updates before submitting your tax return. Later years have different rules. Check the HMRC guidance for your start year; tax return and payment obligations remain.

Check the official guidance · www.gov.uk Check the official guidance · www.gov.uk

Help with this question: Bookkeeping & Making Tax Digital for Doctors & Healthcare Professionals

Want us to check this for you? Get a free review →

Quick quote

See what you could save — get a fixed fee in one working day

Three fields. No obligation. A specialist replies, not a sales team.

Packages for your working life

Accountancy packages for healthcare professionals

Self-employed income, a limited company, PAYE or a mixture: start with the support that matches how you actually work. We check your status and agree the scope and fee before starting.

Self-employed accountants for healthcare professionals packages

For genuine sole-trader income. We prepare your business accounts and Self Assessment, review allowable expenses and explain payments on account.

Sole-trader accounts and personal tax return
Allowable business expenses reviewed
Tax reserve and payment deadline guidance
MTD support scoped separately where required

Fixed fee quoted after a review

Discuss this package

Limited company accountants for healthcare professionals packages

For clinicians working through their own company. Choose Essential/Compliance, Core/Complete or Growth according to your accounts, bookkeeping and payroll needs.

Statutory accounts and Corporation Tax return
One director return for salary and dividends from the same company
Confirmation statement support; filing fee extra
Bookkeeping, VAT and payroll according to your chosen plan

Company packages from £45.83 + VAT / month

Compare company packages

Personal tax return packages for healthcare professionals

For employed clinicians, partners and people with mixed income who need a return. We check whether Self Assessment is required and reconcile the relevant income, expenses and pension tax information.

Self Assessment requirement checked
PAYE and other income reconciled
Eligible employment expenses reviewed
Pension tax work agreed separately where needed

Fixed fee quoted after a review

Discuss this package

Employment status is determined by the facts, not the package you choose. PAYE, umbrella and partnership arrangements may also apply. A limited company does not override IR35 or off-payroll rules, and not every employed clinician needs a tax return.

Overpaid tax?

Tax refund support for healthcare professionals

We review tax codes, eligible professional expenses and overpaid tax, then prepare a claim where you qualify. A refund is not guaranteed; HMRC decides the claim.

£249 + VAT

For refunds up to £5,000, our fee is £249 plus VAT. For refunds above £5,000, add 5% of only the amount above £5,000 to the £249 fee. VAT applies to the total professional fee.

Example: a £6,000 refund means £249 + £50 = £299 plus VAT.

Illustrative refund amount (£)

Professional fee, excluding VAT

£249

Ask about a tax refund

This illustrates the fee only, not whether you qualify or how much HMRC will refund. We agree the claim scope and payment terms before work starts.

What's included

Limited company packages — compare what's included

Essential/Compliance

For locums, salaried GPs and dentists with a limited company

from £45.83 + VAT /month

FRS 105 or FRS 102 1A statutory accounts
Corporation tax return (CT600) and tax computation
Confirmation statement preparation and filing support
One director Self Assessment return
Deadline reminders ahead of every filing date

Core/Complete

For private practice, consultants and associate dentists

from £62.50 + VAT /month

Everything in Essential/Compliance
Monthly bookkeeping and bank reconciliation
Quarterly Making Tax Digital VAT returns
Director payroll with RTI filing and pension submissions
Quarterly review call on numbers and tax position

Growth

For clinics, dental practices and growing medical teams

from £75.00 + VAT /month

Everything in Core/Complete
Payroll for up to five employees

Prices exclude VAT. Making Tax Digital quarterly updates available as an add-on. Compare fees

Why clinicians trust us

Chartered accountants who know the NHS

ACCOTAX has served over 5,000 clients.
Regulated chartered accountants (ICAEW and ACCA).
Founded by Waqas Sagar ACA FCCA FMAAT, with 18+ years' experience.

Reviewed by Waqas Sagar ACA FCCA FMAAT

Chartered accountant and founder of ACCOTAX. Last reviewed October 2026.

Get my fixed-fee quote

How it works

01
Free call
A 15-minute chat about your income, structure and deadlines.
02
Onboarding in 48 hours
We set up your records, software and HMRC agent access.
03
We handle the rest
HMRC, NHS Pensions and every deadline, with reminders before each one.

Free resource

Get the nurse expenses checklist free

Tell us where to send it and we'll email it to you.

Your questions, answered

Does PAYE salary count towards the MTD income threshold?: Employment income is not qualifying self-employment or property income for this test.
Does MTD require quarterly tax payments?: Quarterly updates are reporting obligations; they do not by themselves create a new quarterly Income Tax payment schedule.
Can I be exempt?: Some exemptions exist, including where digital use is not reasonably practicable. Check the HMRC conditions rather than assuming an exemption.

Speak to a specialist today

Leave your details and we'll call you back, or book a free review straight away.

Book a free 15-min tax review

Related healthcare expertise

Bookkeeping & Making Tax Digital for Doctors & Healthcare Professionals Dental accountants for associates and practice owners Accountants for nurses and allied health professionals Self Assessment tax returns for doctors and healthcare staff

Accountants for healthcare professionals Healthcare tax questions answered

General information for the 2026/27 tax year, prepared from the official guidance linked below. It is not personalised tax or regulated financial advice. Rules and circumstances can change; confirm your position before acting.

Official guidance

Get my quote