Making Tax Digital: A Simple Guide for Dog Walkers
- Tori Lynn Crowther
- 3 days ago
- 5 min read
Making Tax Digital: A Simple Guide for Dog Walkers
Running a dog walking business is often refreshingly straightforward. Dogs need walking, clients need help, and your day is spent outdoors doing something genuinely worthwhile.
However, behind the scenes, things are changing. HM Revenue and Customs (HMRC) is introducing Making Tax Digital (MTD), and it will affect how you manage your business finances.
This guide will walk you through what it means, what you need to do, and how to keep everything simple using free tools.
What is Making Tax Digital?
Making Tax Digital is HMRC’s move towards a fully digital tax system.
Instead of completing one annual tax return with a year’s worth of paperwork, you will:
Keep digital records of your income and expenses
Send updates to HMRC every quarter
Submit your final tax return at the end of the year
The aim is to make tax more accurate and reduce last-minute stress.
When will it affect you?
Most dog walkers operate as sole traders, which means MTD will apply based on your turnover (your total income, not profit).
The current rollout is:
April 2026: for businesses earning over £50,000
April 2027: for businesses earning over £30,000
April 2028: for businesses earning over £20,000
Even if you are below these thresholds, it is worth setting yourself up now so the transition is easy.
What are you legally required to do?
If MTD applies to you, you must:
Keep digital records of all income and expenses
Use software that is compatible with HMRC systems
Submit quarterly updates
Complete a final declaration each year
It is important to understand that a basic spreadsheet on its own is not enough unless it is connected to MTD-compatible software.
What this looks like in a dog walking business
In practical terms, this simply means having a clear, consistent system.
You should be able to:
Track every client payment
Record your regular expenses (fuel, insurance, equipment, training)
Keep everything in one place digitally
This replaces the old approach of receipts in drawers and a rush in January.
Keeping it simple with free tools
You do not need expensive software to stay compliant. Many dog walkers can run a fully functional system for free.
All-in-one option
Using a combined banking and bookkeeping system can be the easiest route, particularly if you are newer to business systems.
SumUp Business Account is a good example, offering:
A free business account
Built-in tracking of income
Simple record-keeping features
This reduces the need to manage multiple systems.
Spreadsheet-based option
If you prefer more control, you can use:
Google Sheets for tracking income and expenses
A bridging tool to connect your spreadsheet to HMRC
This works well for those who are already organised and consistent with their records.
Free or low-cost software
There are also entry-level accounting tools that:
Connect directly to your bank
Categorise transactions
Submit updates to HMRC
These can be helpful as your business grows and your admin becomes more complex.
Choosing a business bank account
While it is not a legal requirement, having a separate business account makes everything significantly easier.
Popular free options for UK dog walkers include:
Monzo Business (Lite)
Starling Bank Business
SumUp Business Account
Using a dedicated account allows you to:
Clearly separate business and personal finances
Automatically track income
Reduce errors and missed payments
How it all works together
A simple, effective system looks like this:
Clients pay into your business account
Your transactions are automatically recorded
You review and categorise them weekly
Your software sends quarterly summaries to HMRC
You complete your final tax return as usual
Once set up, this becomes part of your normal routine rather than a separate task.
Common mistakes to avoid
Many issues arise not from complexity, but from inconsistency.
Watch out for:
Mixing personal and business spending
Forgetting to record cash payments
Leaving everything until the end of the year
Confusing turnover with profit
Assuming MTD does not apply to you
Small habits, done regularly, prevent large problems later.
A better way to think about tax
Making Tax Digital is often seen as “more admin”, but in reality it is a shift in how that admin is handled.
Instead of one overwhelming deadline, you have:
Smaller, regular check-ins
A clear view of your finances
Greater control over your tax position
For many dog walkers, this actually reduces stress once the system is in place.
Final thoughts
The best thing you can do is start early.
Even if you are not yet required to follow MTD:
Open a separate business bank account
Begin tracking your income and expenses digitally
Build a simple weekly admin habit
By the time MTD becomes mandatory, your business will already be running in a structured, professional way.
A note on business and professionalism
This guide assumes one thing: you are running a business, not a hobby.
Pet care is more than a passion—it’s your livelihood, and it deserves the same professionalism, planning, and respect as any other business. Treating it like “just a job for fun” won’t get you the results or freedom you want.
You are allowed to:
Charge enough to make your business sustainable
Set and enforce clear boundaries with clients
Expect respect from clients, peers, and the wider pet care industry
Take your work seriously, even when others don’t
Build a business that supports you, not just every pet and client
Professional success starts with self-respect—and pet care businesses built on self-respect thrive for the long term.
About Tori Lynn C. & The Dog House
Welcome to The Dog House — my cosy corner of the TLC Canine Crusaders Business Hub. I’m Tori Lynn C., the founder of TLC Dog Walking Limited, mentor to professional dog walkers, and lifelong advocate for dogs and the people who care for them. With over 17 years of hands-on experience in the industry, my mission is to guide you through the realities of running a successful, sustainable dog walking business — from client care and safety to wellbeing, confidence, and professional growth.
The Dog House is where I share the honest, behind-the-scenes conversations we all need: the tricky moments, the funny bits, the business lessons, and the mindset work that keeps us thriving rather than merely surviving. Whether you're just starting out or scaling up, you’ll always find support, guidance, and a friendly nudge forward here.
You’re never alone in this journey — you’re part of a community of canine crusaders.
Legal Disclaimer
The information provided on this website is for general information and educational purposes only. It is intended to support pet care professionals in understanding common legal considerations when operating a dog walking or pet care business in the UK.
This content does not constitute legal advice and should not be relied upon as a substitute for advice from a qualified solicitor or legal professional. Laws, regulations and local authority requirements may change over time and can vary depending on location and individual circumstances.
While every effort has been made to ensure the information is accurate and up to date at the time of publication, no guarantees are made regarding completeness or applicability to your specific situation.
By using this website, you acknowledge that:
✓ You are responsible for ensuring your own business complies with all relevant UK laws and local authority rules
✓ You should seek professional legal advice before drafting, using or relying on any contract or legal document
✓ The website owner accepts no liability for loss, damage or legal issues arising from the use of this information
If you are unsure about any legal obligations, contractual terms or liabilities, it is strongly recommended that you consult a solicitor experienced in small business or consumer law.
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