Making Tax Digital: What Performers Need to Know

Created on March 2, 2026

If the phrase “Making Tax Digital” makes you want to fake your own interval and never return, you’re not alone. Most performers didn’t get into this industry because they adore admin, but MTD should make the amazing creative chaos that is working in the arts a lot easier. Bare with me…

What is Making Tax Digital?

MTD is HMRC’s push to modernise the UK tax system. Less paper, more digital. It’s a big change-up but here’s why you should care and why it trumps the current process:

1. Live figures means better cash-flow awareness: Set aside the right amount of tax, avoid nasty surprises and plan spending more confidently.
2. No “once-a-year tax panic”: Not 1 full tax return, but 4 smaller ‘summaries’ that you approve at the end of the tax year.
3. Perfect for irregular income. One month you’re touring, the next you’re teaching, the next you’re doing a voiceover in a cupboard. MTD — and the right software — will help you keep track without it getting chaotic.
4. Reporting as you go means no more trying to remember a gig from over a year ago or last-minute January receipt scrambles.
5. We live in a digital world: MTD matches how freelancers already work. We invoice digitally, use internet banking and track our work in Apps or spreadsheets. MTD will connect those habits and formalise what a lot of us already do.

Who does it affect?

If you’re:

• Self-employed (actors, musicians, dancers, directors, creatives, stage managers, etc.)
• And earning above HMRC’s threshold

…then MTD will eventually apply to you.

What you'll need to do

You’ll need to keep digital records of your income and expenses as you go through the tax year (6th April to 5th April remember) and send that information to HMRC every 3 months using HMRC-approved software instead of the old once-a-year self-assessment. Then, you'll do a final end-of-year check to confirm everything’s correct, add adjustments, and HMRC will give you the final bill.

The deadline for paying any tax owed stays the same — 10 months after the tax year ends — so you’re not rushed to pay sooner, just (hopefully) better prepared.

While any PAYE income (employed) you have in the tax year will be reported to HMRC automatically by employers, you'll still need to include it in your final 'check' (also known as your End of Period Statement or EOPS) and Final Declaration. The software you choose should do a lot of this 'work' for you.

You just need to find software/a system that works for you. HMRC has a full list of "recognised" software which is MTD ready and HMRC-compatible. If you want something Performer specific then SansDrama Web App is on that list too. Some bridging software is free whilst others you'll pay for. It's £3.50/month for The SansDrama Web App (worth it for including Equity pension we think!) and remember, anything you spend on MTD software is an allowable business expense.

When will MTD be compulsory for you?

In a career where your income can swing more wildly than a fringe festival timetable, it's helpful to know that you can voluntarily start using MTD software from April 6th 2026 even if MTD isn't mandatory for you yet. This may or may not be the right decision for you right now, but MTD is coming for us all over the next 3 years. It's based on your previous tax years earnings. Here's how the compulsory thresholds will be phased-in:

• From April 2026: If your combined gross income from self-employment and property is over £50,000, you must comply with MTD.
• From April 2027: The threshold lowers to £30,000.
• From April 2028: The threshold further lowers to £20,000.
• From April 2029 onward: The governemnt has set out plans to legislate for the threshold to continue to lower.

This means more performers will need to use digital record-keeping and submit quarterly updates as these thresholds decrease. Even if you don’t meet the current thresholds, signing up for Making Tax Digital voluntarily could be a game-changer.

1. Get a Head Start: Build good habits early and avoid scrambling when the thresholds drops.
2. Penalties (first-year concession): Penalties for late quarterly updates are waived for the first year MTD is introduced (2026/27) giving you a year to adjust without being penalised for a late submission. Penalty concession does not apply to the end of year tax return for 2026 to 2027 (due 31 January 2028)
3. Gain Real-Time Insights: Understand your finances better throughout the year, not just at tax time.
4. Reduce Future Stress: By starting now, you’ll dodge the last-minute panic and potential errors that come with rushing.
5. Be Future-Proof: As HMRC moves towards full digital tax compliance, early adopters will be ahead of the curve.

Ready to take the leap? The SansDrama Web App is here to support you every step of the way, making digital tax simple, approachable, and tailored for performers like you.

Why not to sign up for MTD (yet)

1. You're confident that you're not going to meet the current threshold.
2. You're planning on not being self-employed soon.
3. You don't want to pay for software until you have to. Yes, the SansDrama Web App is aimed to be affordable and any MTD software is an allowable business expense, but the point still stands.
4. You're already in a good rhythm with your current system, want to avoid the new admin and are not legally required to move to MTD yet.
5. You're working with an accountant who advises you to "hold off."

Final bow

Making Tax Digital isn’t here to steal our spotlight. It’s just a new way of doing something we already do — hopefully with more clarity and fewer last-minute panics.

Want to stay in the loop and get tips tailored for performers? Join our mailing list and hop into our community WhatsApp group. We’re here to support you without drama. SansDrama.

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