MTD for Private & Live-In Carers —
Employment Status and Your Threshold
Only include income where you're genuinely self-employed, not engaged as an employee by a family or care agency.
- Private and live-in care is one of the UK's fastest-growing self-employed trades, but only genuinely self-employed care income counts towards the £50k / £30k / £20k phased MTD thresholds.
- If a family or care agency sets your hours, provides your equipment, and controls how you deliver care closely, you may actually be an employee for tax purposes, regardless of what any contract calls you.
- Travel between multiple clients, DBS checks, and specialist training are all standard allowable expenses once you're genuinely self-employed.
If you work as a genuinely self-employed private carer, providing domiciliary or live-in care directly to families, Making Tax Digital applies to you the same way it applies to any sole trader. This is one of the fastest-growing self-employed trades in the UK, and it's an area where employment status genuinely needs checking carefully.
Are You Affected by MTD as a Private or Live-In Carer?
Yes, if your gross genuinely self-employed care income, plus any other self-employment income, exceeds the relevant threshold:
| Tax Year Assessed | Threshold | MTD Start Date |
|---|---|---|
| 2024–25 | Over £50,000 | 6 April 2026. Live since April 2026 |
| 2025–26 | Over £30,000 | 6 April 2027 |
| 2026–27 | Over £20,000 | 6 April 2028 |
Your gross income is your total fees received before expenses, travel, DBS checks, and training costs are all deducted afterwards, not before, when checking your threshold.
Genuinely Self-Employed or an Employee?
Live-in care arrangements in particular are worth checking closely, since the degree of control a family exercises over a live-in carer's daily routine can look very different from the flexibility genuine self-employment usually involves.
What You Can Claim
| Expense Category | Examples |
|---|---|
| Travel | Mileage between multiple clients, at the current HMRC rate |
| DBS checks | Enhanced DBS check costs |
| Training | First aid, manual handling, and care-specific CPD courses |
| Insurance | Public liability insurance |
| Equipment | Any care equipment you provide yourself, not supplied by the client |
Records for Placements, Agencies and Direct Clients
Private and live-in carers may work through agencies or directly for families, with placements lasting weeks. Status matters, and the records should show how each placement is paid.
- Record each placement: client, dates, rate and payment.
- Note whether the agency pays you gross or through a payslip, and keep the paperwork.
- Record direct payments from families separately from agency work.
- Keep DBS, training and insurance costs.
- Keep travel costs between placements with a log.
Where Carers Go Wrong on MTD
- Counting payslip pay. Work paid through payroll is employment income.
- Assuming status is a choice. It is judged on the facts of each arrangement.
- Forgetting gaps. A quiet quarter still needs an update.
- Skipping costs. DBS and training are allowable if you pay them.
- Mixing agency and direct pay. Keep them in separate lines.
A Sample Quarter: What the Update Looks Like
A sample quarter for a carer with direct clients and some agency placements.
| Q2: 6 July to 5 October 2026 | Amount |
|---|---|
| Direct placements invoiced | £8,800 |
| Agency work paid gross | £3,400 |
| Total income | £12,200 |
| DBS, training and insurance | £520 |
| Travel between placements | £640 |
| Uniform and supplies | £210 |
| Phone and admin | £230 |
| Total expenses | £1,600 |
| Profit for the quarter | £10,600 |
Only invoiced, gross income counts. Pay through an agency payslip stays out.
Worked Example
Grace — Self-employed carer, multiple private clients
Grace's agency PAYE shifts are already taxed at source and excluded entirely. Her £31,500 genuinely self-employed income sits between £30,000 and £50,000, so she falls into Phase 2, joining MTD from April 2027.
Frequently Asked Questions
How do I know if I'm genuinely self-employed as a carer?
Key indicators include whether you control your own hours and can decline work, whether you could send a substitute carer in your place, and whether you work for multiple clients rather than one family controlling your whole schedule. If a family or agency closely directs your daily routine with no flexibility, you may be an employee regardless of your contract's wording.
What's the MTD threshold for private and live-in carers?
The same as any genuinely self-employed sole trader: over £50,000 gross income in 2024–25 means MTD from April 2026, over £30,000 in 2025–26 means April 2027, over £20,000 in 2026–27 means April 2028.
Does agency PAYE care work count towards my MTD threshold?
No. If a care agency employs you on a PAYE basis and deducts tax and National Insurance before paying you, that's employment income and doesn't count towards your MTD threshold.
Can I claim mileage between different clients' homes?
Yes, at HMRC's current approved mileage rate, 55p per mile for the first 10,000 business miles in a tax year, then 25p per mile after that.
What software do I need as a self-employed carer?
Any HMRC-recognised MTD software works. The main practical need is clearly separating genuinely self-employed income from any agency PAYE shifts, which is a simple categorisation task in any standard software.
Check Your Full MTD Position
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