MTD compliant software within the medical sector

Making Tax Digital (MTD) for Income Tax is fast approaching and represents the biggest change to tax reporting since Self Assessment was introduced in the mid-1990s.

Following our earlier blog on what MTD means for medical professionals, this article looks specifically at the software options available and how they can support you in becoming compliant.

Why medical professionals need MTD ready software

From April 2026, sole traders such as GP locums and medical consultants with qualifying incomes above £50,000 must comply with MTD. This reduces to £30,000 from April 2027, with a further reduction to £20,000 planned. Qualifying income is your total income before expenses in a tax year from self-employment and property.

Compliance requires digital record keeping, quarterly submissions, and the use of HMRC recognised software. Importantly, once MTD applies, the HMRC online portal will no longer be available for submitting tax returns, meaning you must use approved software.

Software options we work with

Xero

Xero is widely used by medical sole traders for its ease of use and integrations, offering:

• Strong app integration options
• Lower cost compared with some alternatives
• A simple, intuitive interface suitable for non-accountants
• No need for additional software for property income

QuickBooks Online (QBO)

QBO is ideal for practitioners with expanding or more complex income streams, offering:

• Advanced capabilities and deeper reporting tools
• The ability to scale as your business grows
• Strong training and onboarding resources

Hammock

For medical professionals with rental properties, Hammock provides a tailored solution:

• Purpose built for landlords, with automated rent and expense tracking
• Integration with QBO
• Compliance reminders for documents such as insurance and gas certificates

Bridging software

Bridging software can be suitable for smaller sole traders who prefer spreadsheets:

• Requires minimal new skills and allows continued use of Excel
• Creates the required digital links to HMRC systems for MTD submissions
• A cost-effective option, especially for those with simple affairs

What to consider when choosing software

Before selecting a system, think about:

• Whether you also have property income
• Cost and long term value
• Any previous experience with accounting tools
• Integration with existing systems
• The level of reporting you require

Most platforms offer free trials, allowing you to test the software before committing.

Need help?

Every medical professional’s needs are different. Whether you’re a GP locum, consultant, or part of a practice planning ahead, choosing the right digital software is key to managing MTD smoothly.

Get in touch with your usual Larking Gowen contact or email enquiry@larking-gowen.co.uk.

Rachel Miller