Dear all,
In just two weeks’ time, HMRC will begin rolling out Making Tax Digital for Income Tax (MTD).
This is the biggest change to Self-Assessment since 1996 and it will significantly change how self-employed Driving Instructors record income and report to HMRC.
The new rules apply based on turnover and rental income (not profit) and will be introduced in phases:
£50,000+ turnover or rental income – from 6 April 2026
£30,000–£50,000 turnover – from 6 April 2027
£20,000+ turnover – from 6 April 2028
Once you fall within scope, you will need to:
• Keep digital business records
• Use MTD-compatible bookkeeping software
• Submit income and expense updates to HMRC every quarter
• Complete your annual tax submission
For many instructors this will mean more reporting, more deadlines and significantly more administration unless you have the right systems in place.
A specialist solution for Driving Instructors
To help members prepare, we are pleased to continue our association with FBTC Accountancy Services. New clients will receive four months at half price, as an introductory offer.
FBTC has been supporting Driving Instructors for over 35 years and already works with thousands of instructors across the UK.
Their service combines sector-specialist accounting support with a bookkeeping app designed specifically for instructors.
With FBTC you benefit from:
A bookkeeping app built for driving instructors
Track income, expenses and tax in one place. The app can be used as a standalone bookkeeping solution or connected to several leading diary management systems used in the sector, allowing lesson income to flow automatically into your records.
Sector-specialist expertise
FBTC understands the commercial realities of the instructor profession, including pupil pipelines, franchise arrangements, fuel costs, vehicle changes, insurance and lesson income patterns.
Unlimited tax and accounting advice
Clients receive unlimited support for a fixed monthly fee, meaning you can ask questions whenever you need guidance.
Confidence with HMRC compliance
FBTC’s digital systems help ensure your records are organised, compliant and ready for Making Tax Digital reporting.
Transparent monthly pricing
A single predictable monthly fee covering accounting, tax returns, advice and digital tools, helping avoid unexpected year-end bills.
With Making Tax Digital starting in April, now is the time to act
Many instructors are choosing to put compliant systems in place now so they are ready before quarterly submissions begin.
Leaving preparation until the last minute can make the transition significantly more difficult.
Learn more or join FBTC today
You can learn more, find the costings and begin the onboarding process here:
The FBTC team will guide you through the process and help ensure your business is ready for the new HMRC requirements.
