Money & tax
Making Tax Digital, without the dread
From April 2026, self-employed instructors earning more than £50,000 keep digital records and send HMRC a short income-and-expenses summary every quarter. Lesson Diary keeps those records as you teach — your paid lessons add themselves up, you log expenses in a few taps, and the whole lot exports for your accountant.
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Part of Driving instructor software and Driving instructor diary
A shoebox of receipts is not a digital record
Most instructors work out their tax once a year from bank statements and a carrier bag of fuel receipts. Making Tax Digital ends that — you need income and expenses kept digitally, quarter by quarter. Lesson Diary already knows what you were paid; add your costs alongside it and every quarterly figure is there when you need it.
Income adds itself up
Every lesson you have marked paid is totalled by tax year and by MTD quarter. Nothing to key in — it comes from the payments you already record.
Log expenses and mileage
Fuel, insurance, franchise fees, ADI badge, phone. Log a cost in seconds on the drive home, or claim mileage and we work the amount out.
Profit, quarter by quarter
Income minus expenses for each of the four MTD periods, so the figure you would report holds no surprises.
Hand it to your accountant
Export a CSV plus a one-page summary laid out to the Self Assessment self-employment pages — for your accountant or bridging software.
How the tax side compares
Some driving instructor apps track payments but leave the tax record-keeping to you. Lesson Diary turns those payments into income figures by quarter and lets you log expenses beside them.
See the full comparisonCommon questions
- Does Lesson Diary file my tax return or send anything to HMRC?
- No. Lesson Diary keeps your income and expense records digitally and exports them. Sending the quarterly updates and the final return to HMRC is done by your accountant or by MTD-recognised bridging software — this is not tax advice.
- When does Making Tax Digital start for driving instructors?
- From 6 April 2026 for self-employed people with income over £50,000, from April 2027 for income over £30,000, and from April 2028 for income over £20,000. If it applies to you, you keep digital records and send HMRC a short summary each quarter.
- Where does the income figure come from?
- From the lessons you have marked paid. Lesson Diary counts each on its lesson date and totals them by tax year and by MTD quarter — you do not type income in.
- Can I claim mileage instead of actual car costs?
- You can log mileage and Lesson Diary works out the amount at the simplified-expenses rate. Whether mileage or actual running costs are better for your car — and dual-control cars are treated differently — is a question for your accountant.
- Is Money & Tax on the free plan?
- No. It is part of the paid subscription, along with everything else.
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