Do you need to use MTD for your photography business?
MTD ITSA applies to sole traders and landlords based on their qualifying income. For photographers, this is the total income from self-employment before any expenses are deducted. This includes fees for weddings, portrait sessions, commercial shoots, and revenue from selling stock images or prints.
The threshold is tested as being more than the figure. If your qualifying income was exactly £50,000 in 2024-25, you are not over the threshold. However, if it was £50,001 or more, you must join MTD ITSA for the 2026-27 tax year.
If your income was between £30,000 and £50,000 in 2025-26, you will need to join from 6 April 2027. If it was between £20,000 and £30,000 in 2026-27, you will join from 6 April 2028. Income of £20,000 or less is an automatic permanent exemption.
What counts as qualifying income for photographers?
Qualifying income is the total turnover from your photography business. This includes all money received for services and goods sold. You must add together income from all self-employment activities if you have more than one, such as wedding photography and a separate stock photo agency account.
If you also let out property, that income is added to your photography turnover to test the threshold. All UK properties are treated as one property business. All foreign properties are treated as another.
Certain income is not counted towards the MTD threshold. This includes employment income received through PAYE, dividends, State and private pensions, and one-off transactions in UK land in a single tax year.
Quarterly updates for your photo business
Under MTD ITSA, you send four updates a year. Each update is a summary of your income and expenses by category, cumulative from 6 April. It is not a full tax return. You must send an update even if you had no income or expenses in that period.
For photographers, this means recording income from weddings, stock sales, and commissions in the quarter they were received (if using cash basis). Expenses like equipment purchases, studio rent, and travel are also recorded in the same period.
You can send updates from the end of the period up to the deadline. You can also send them up to 10 days before the period ends if you expect no further transactions. The categories used are the same as those in Self Assessment.
| Period | Deadline |
|---|---|
| 6 April to 5 July | 7 August |
| 6 July to 5 October | 7 November |
| 6 October to 5 January | 7 February |
| 6 January to 5 April | 7 May |
The accounting period cannot be changed after the first quarterly update has been sent. Most software defaults to the tax year aligned period (6 April to 5 April).
Digital records and equipment
You must create and store digital records for all income and expenses. A digital record is created in compatible software. You cannot keep records on paper or in a spreadsheet that is not linked digitally.
For photographers, this includes records of camera bodies, lenses, lighting equipment, and software subscriptions. If you buy a new camera, the expense is recorded in the software. If you sell a used lens, the income is recorded.
Once a record has been sent to HMRC in a quarterly update, it must not be moved by hand. You cannot cut and paste or copy and paste records between products or cells. Digital links must be used, such as importing CSV files or using software that automatically transfers data.
Penalties for missed deadlines
Penalties are based on points. You get one penalty point for each missed submission deadline. The threshold is 4 points. Once you reach 4 points, you get a £200 penalty. Each further missed deadline adds another £200 penalty.
For the 2026-27 tax year, there are no penalty points for missing a quarterly update deadline. However, points still apply to the tax return deadline. You must still send the updates and keep digital records.
If you are below the threshold, points are removed automatically 24 months after the missed deadline. At the threshold, you need 12 months of on-time updates and returns to reset points.
Signing up and software
You must be registered for Self Assessment and have submitted a tax return in the last 2 years. You sign up for each income source if you have more than one. From September 2026, HMRC will sign up anyone who needs it for 2026-27 and has not signed themselves up.
HMRC does not provide software. You must use compatible software that can create digital records and send quarterly updates. TradeKit is MTD ready - recognised by HMRC (reference D4K6ZS).
You authorise the software to connect to HMRC. This authorisation must be repeated every 18 months. The software sends category totals to HMRC, not individual transactions.