Making Tax Digital: What Adult Industry Professionals Need to Know

HMRC’s shift to digital tax returns is no longer just an idea - it’s happening. If you’re a full-time content creator, do in-person work, or run your adult business on the side, Making Tax Digital (MTD) is something you’ll need to know about.

But don’t panic. This isn’t about paying more tax or being caught out. It’s about making the whole thing easier - for you and for HMRC. Think less paperwork, more time saved, and a system that fits around your business.

In this blog, we’ll explain what MTD is, who it applies to, and what you need to do now to stay compliant (without the stress). This is adult industry tax advice you don’t want to miss.

What is Making Tax Digital and Who Does it Affect?

MTD is the government’s plan to drag the tax system into the 21st century. Instead of waiting until the end of the year to file one big tax return, you’ll send simple updates every few months. That’s it. Totals only - not individual transactions or who paid you what.

From April 2026, if you earn over £50,000 as a sole trader in the adult industry, you’ll be expected to use MTD. If you earn over £30,000, it starts for you in 2027. If you're under that - you can ignore this for now (but you might want to get ahead).

So whether you’re camming, performing, content creating or renting out a flat, MTD might apply to you. The good news? There’s time to get ready.

Why Is the Tax System Changing?

This isn’t about HMRC hunting people down. It’s about helping small businesses avoid mistakes and making life easier with the help of software. MTD is already being used for VAT, and now it’s coming to income tax.

The idea is to keep your tax records up to date throughout the year. That means fewer nasty surprises in January, fewer errors, and no more scrambling for receipts and numbers at midnight before the deadline.

And no - you don’t have to pay tax more often. You still pay in January and July. You're just sending totals quarterly, so HMRC can see what’s going on. Nothing more.

Key Changes from 2026 (or 2027 for some)

Quarterly updates using software - You’ll send totals for income and expenses every 3 months using software like Xero or FreeAgent. No need to list every payment - just the figures.

One final declaration at year-end - At the end of the year, you’ll do one final check to make sure everything’s right. It’s like your usual Self Assessment but with fewer surprises.

Same tax deadlines - Your payment dates won’t change. Still January and July. No new bills, no weird frequency. Just better tracking.

You’ll need software - MTD needs digital records. You can still use spreadsheets, but it’s clunky. Proper bookkeeping software makes it a breeze - and it does most of the work for you.

Is HMRC Making This Easier?

Actually, yes.

They’ve dropped the confusing “End of Period Statement” and now let you send cumulative totals - so if you make a mistake, you just fix it in the next update.

Joint incomes? You can submit shared figures without a back-and-forth nightmare. No National Insurance number? There are exemptions. Got more than one accountant? You can split who does what.

The system is getting simpler, not harder.

4 Quick Steps to Stay Ahead

Step 1: Try out digital bookkeeping software now - FreeAgent and Xero are great starting points.

Step 2: Check your income for the 2024/25 tax year. If it’s close to £30k or £50k, you’ll need to plan ahead.

Step 3: If you're in scope, aim to get set up by Jan 2026 so you’re ready before the April deadline.

Step 4: Don’t panic. This isn’t about catching you out. It’s about giving you a clearer picture of your money. And we’re here to help.

Support for Adult Industry Professionals Moving to Digital Tax

We get it - tax can feel overwhelming, especially if you’ve been used to doing it your own way. That’s why we keep things confidential, non-judgemental, and completely tailored to you.

MTD might sound like a big shift - but really, it’s just totals. A few updates a year. And a system that’ll make your life easier.

Got questions? Need help getting started? Get in touch. We’ll take the pressure off and help you get everything sorted, no fuss.