Making Tax Digital: What You Need to Know & How to Get Prepared
Article for Massage Warehouse
If you’ve been avoiding anything to do with tax or numbers — you're not the only one. For many massage therapists, the business admin side of things can feel confusing, overwhelming, or just something to “deal with later.” But there’s a big change coming that you need to know about, even if you're just starting out.
It’s called Making Tax Digital (MTD) and it's part of a government plan to modernise the UK tax system. It might sound complicated, but once you know the basics, it’s not as scary as it sounds, and getting prepared now will save you stress later.
This blog will walk you through what it is, when it’s happening, and what you need to do (especially if you're a sole trader running your massage business on your own).
So, what is Making Tax Digital?
Making Tax Digital is a new system from HMRC (the UK tax office) that’s gradually replacing the old way of doing Self Assessment. Instead of keeping paper records or entering everything manually once a year, MTD means you’ll need to:
- Keep digital records of your business income and expenses, and
- Send updates to HMRC every 3 months using MTD-approved software.
You’ll still do a final summary at the end of the year (a bit like your current tax return), but it will all be submitted digitally.
It’s already in place for VAT-registered businesses, and now HMRC is preparing to roll it out to sole traders and landlords, which includes many massage therapists.
Do I need to worry about it yet?
That depends on how much money you’re bringing in from self-employment before expenses. Here’s the current timeline:
- £50,000 for the 2024 to 2025 tax year, you will need to use it from 6 April 2026
- £30,000 for the 2025 to 2026 tax year, you will need to use it from 6 April 2027
- £20,000 for the 2026 to 2027 tax year, you will need to use it from 6 April 2028
So, if you’re just getting started or still under those income levels, it’s not urgent — but this is the perfect time to get ahead of the game and ease yourself into it.
What does “digital records” mean?
It means keeping your income and expenses on a computer or app, rather than scribbled in a notebook or stored with a shoebox of receipts.
But it’s not just about spreadsheets anymore. You’ll need to use software that is recognised by HMRC to keep your records and send your updates. These tools are designed to help small businesses, and many are simple to use, even if you’re not confident with tech.
Some examples of HMRC-approved software include:
- FreeAgent (free if you bank with Mettle)
- QuickBooks Self-Employed
- Xero Starter
- 123 Sheets (lets you link spreadsheets to HMRC)
There are others and many have mobile apps so you can snap photos of receipts and track your bookings on the go.
Why is this happening?
The idea is to reduce mistakes, encourage better record keeping, and make tax reporting quicker and more accurate. For HMRC, it's about efficiency. But for you, the upside is that it can actually make running your business feel more organised.
Instead of scrambling to pull everything together at the end of the year, you’ll be keeping on top of things as you go. That might sound like more work, but many therapists find it’s less stressful once they get into the habit.
3 Simple Ways to Get Ready for MTD (without getting overwhelmed)
Whether you’re already earning over the threshold or still a long way off, there are a few steps you can take now to make things easier when the time comes.
- Start using simple software to track your income and expenses
Even if you’re not legally required to use MTD software yet, you can start practising now. Most tools let you:
- Log each massage or treatment you get paid for
- Record expenses like oils, linens, CPD, rent, or travel
- Store digital copies of receipts
- Categorise everything so you can easily see your profit as you go, not just at the end of the year
There’s no need to wait to start using these tools. If you make it part of your weekly routine now, it’ll feel normal by the time MTD becomes mandatory for you.
- Build a weekly habit of updating your records
It doesn’t have to take long. Just 10–15 minutes a week can make all the difference. Here’s a simple system:
- Choose a set time each week (e.g. Monday afternoon)
- Enter your income for the week (what clients paid you and when–including cash)
- Log any business-related spending
- Take a quick photo of any paper receipts so you don’t lose them
Keeping on top of this regularly means you’re not dreading tax time, and you’ll always know how your business is doing financially.
- Get support if you’re unsure
You don’t have to figure this out on your own. There are lots of places to get help:
- HMRC’s website has a whole section on Making Tax Digital with guides and videos https://www.gov.uk/government/collections/making-tax-digital-for-income-tax-for-businesses-step-by-step
- They also offer free webinars if you prefer to hear it explained
- If you have an accountant or bookkeeper, they can walk you through what to do
Asking early is much better than burying your head in the sand. Even just understanding what’s coming will help you feel more in control.
A few extra tips…
- You don’t have to register for MTD just yet unless you’re already over the threshold, but it’s worth checking your income to see if you’re close.
- If you hate numbers or spreadsheets, choose software that does the maths for you. Many platforms are designed with sole traders in mind.
- Some tools are completely free, so don’t assume you’ll have to pay.
- If your income is quite variable, having up-to-date records can help you plan better for quieter periods.
Final Thought
Making Tax Digital might sound like just another burden — especially if you’re already juggling clients, treatments, marketing, and all the other jobs that come with being a self-employed therapist. But it doesn’t have to be a headache.
If you’re earning under £20,000, you don’t need to worry about it just yet — you won’t be required to follow the new rules for now. But it’s still worth being aware that things are changing, and MTD is likely to be rolled out more widely in the future.
By taking small steps now — choosing simple software, building a weekly habit, and learning the basics — you’ll be setting yourself up for a smoother, more confident business journey. You don’t need to do everything all at once. But doing something now will help make sure you're not caught out later.
This blog is for information only and not financial advice. Please speak to a qualified accountant or visit gov.uk for official HMRC guidance.