Agency-introduced and direct-hire clients, live-in and hourly work, mileage between visits and DBS and training costs. Here's how Making Tax Digital for Income Tax affects self-employed carers and private nurses, and when it starts.
MTD for Income Tax phases in by gross income before expenses. Many self-employed carers sit between £30,000 and £50,000, so it's worth knowing your wave.
Working through an introductory agency usually still makes you self-employed, unlike an employed care worker on PAYE. That means your own records and, once you're over the threshold, MTD for Income Tax.
When you're in scope, your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Log each shift or visit as you're paid so your quarterly total matches the work you actually did.
Whether introduced by an agency or hired directly, it's your self-employed income in one set of records.
A daily live-in rate or an hourly visit, both are income recorded as you're paid and totalled for the quarter.
Travel between visits is deductible. Log it as you go, by flat rate or actual costs, and nothing is missed.
DBS checks, training and professional registration are deductible. Keep them recorded so your expenses stay complete.
Between clients and on the road, records need to be quick. Clear Books works from your phone and gives HMRC exactly what MTD needs, whenever you're in scope.
Record shifts, visits and mileage as you go, watch your gross against the thresholds, and be ready to submit when your wave lands.
