Making Tax Digital for Income Tax for self-employed people working in education
If you're self-employed and working in education, the way you report income to HMRC has changed. Since April 2026, Making Tax Digital for Income Tax (MTD IT) has applied to many people working across education and assessment roles.
This includes people such as private tutors, supply teachers and lecturers working on a self-employed basis, exam markers and invigilators paid outside PAYE, and education consultants, trainers or assessors running their own practice. If you’re not treated as an employee for tax purposes, MTD IT may apply to you.
While the new rules may sound daunting, MTD IT is largely about reporting your income and expenses more regularly using digital records and HMRC-recognised software. HMRC isn’t providing its own software, but with some early preparation, the process doesn’t have to be complicated or expensive.
Understanding Making Tax Digital for Income Tax
MTD IT replaces the traditional annual Self-Assessment return for those in scope. Instead of reporting once a year, you are required to:
- keep digital records of your income and expenses
- submit four quarterly updates to HMRC showing year-to-date totals
- complete a final declaration at the end of the tax year
All submissions must be made using HMRC-recognised software. HMRC does not provide its own software, so choosing the right option is an important early step.
When MTD IT applies and who if affects
MTD IT is being introduced in phases, based on your gross annual income, not your profit. You need to comply if your combined gross income from self-employment and/or property is:
- £50,000 or more from April 2026 (already in effect)
- £30,000 or more from April 2027
- £20,000 or more from April 2028
If you earn income from more than one qualifying source, HMRC adds these together when assessing whether you meet the threshold.
Does MTD IT apply to you?
MTD IT applies if you are self-employed, rather than treated as an employee for tax purposes. It also applies if you receive any income from property (for example, if you let out a property on the likes of Airbnb).
If all your income is taxed through PAYE and you have no other self-employment or property income, MTD IT does not apply.
If you do receive self-employed or property-related income, it will count towards the MTD IT income thresholds, so it’s worth checking your position early.
What digital record-keeping means in practice
Under MTD IT, you need to keep digital records of your income and expenses as you go. HMRC does not require scanned receipts, but your records must accurately reflect your income and spending totals.
Common expenses for people working in education might include:
- home office costs
- teaching and assessment materials
- professional subscriptions andtraining
- equipment such as laptops ortablets
- travel costs, where allowable
HMRC guidance sets this out in detail what is permitted as business-related expenses. Check out HMRC’s guidance here:
You can still use annual expenses allowance. This allows you to claim a fixed amount for certain expenses instead of working out the exact business proportion.
Whether this is worthwhile depends on your circumstances. For some, it simplifies record-keeping. For others, particularly where business use is high, claiming actual costs may result in a better outcome. You can choose which approach to use, but it is important to understand the difference and to apply it consistently.
MTD IT's quarterly updates and the final declaration
Every three months, you submit a cumulative summary of your income and expenses for the tax year to date. These updates are for information only. No tax payment is due at this stage. The quarterly submission deadlines are: 7 August, 7 November, 7 February and 7 May
At the end of the tax year, you’ll submit a final declaration by 31 January. This replaces your Self-Assessment return and confirms your overall tax position, including any other income, allowances or reliefs.
Choosing MTD IT software that works for you
To comply with MTD IT, you must use HMRC-recognised software. This can be full accounting software or bridging software that connects spreadsheets to HMRC. TaxNav offers both and is HMRC-recognised.
TaxNav is designed for people with simple tax affairs and works well for those working in education. It’s also designed with affordability in mind, and using the TaxNav software you can cost-effectively:
- Record income and expenses directly into the software, via a browser on your phone or computer
- Continue using Excel spreadsheets if you prefer, by submitting figures through our handy bridging software
- Use one of TaxNav’s spreadsheets if you’d like
- Submit quarterly updates and your final declaration in one simple and easy to use place
This flexibility can be particularly helpful where income varies across the academic year.
With TaxNav you automatically get a 30-day free trial and we offer low-cost subscriptions to keep things affordable. An annual subscription is £60+VAT or pay as you go for £6+VAT per month.
How to get MTD-IT ready
If you haven't started yet, don't panic. Focus on these basics as, once those are in place, everything else follows naturally.
- Confirm if your gross income will trigger the MTD IT rules with HMRC's page
- Register with HMRC for MTD IT before you begin.
- Select your software - TaxNav offers a 30-day free trial
- Start keeping and recording your digital records - for example, directly into our software or in a spreadsheet using our bridging software. Until your final return, this does not need to be 100% accurate.
- Diarise when you need to submit your quarterly updates, TaxNav will remind you.
- Diarise your final (annual) declaration deadline
People with income over £30,000 from self-employment and/or property will need to join MTD IT from April 2027. You can, however, volunteer to join early and get familiar with it before your HMRC deadline.
With TaxNav you automatically get a 30-day free trial and we offer low-cost subscriptions to keep things affordable. An annual subscription is £60+VAT or pay as you go for £6+VAT per month.
Explore and try out our user-friendly MTD IT software