Any self-employed interpreter or translator who receives an Access to Work (AtW) grant, whether the grant is paid to you directly or DWP pays your support worker on your behalf.

This is particularly important for deaf interpreters who use AtW to fund support workers, relay interpreters, or specialist equipment.

Most interpreters already know that AtW grants paid to them count as gross income. The important news is that HMRC has now confirmed that AtW grants paid directly to a support worker, which never go through your books, must also be included in your gross income. This does not mean anyone pays more tax. It only affects when someone has to start using MTD software.

Why?

HMRC has confirmed that the AtW grant counts as business income. But they’ve also confirmed that the support worker cost is a fully deductible business expense, even when DWP pays the support worker directly. So the two entries cancel each other out.

An interpreter with an £8,000 AtW grant shows £8,000 extra income and £8,000 extra expense. Taxable profit: unchanged. Tax bill: unchanged.

Where it does have an impact?

MTD start dates are based on gross income (before expenses), not profit. So the AtW grant pushes the gross figure up, and that could move someone into an earlier mandation group.

Example 1: interpreter near the £50,000 threshold

An interpreter earning £45,000 in fees with an £8,000 AtW grant has qualifying income of £53,000. That’s above the £50,000 threshold for April 2026 mandation. Without the grant, she’d be in the April 2027 group.

Example 2: interpreter with lower fees but substantial AtW support

An interpreter earning less than £20,000 in fees might not expect to fall into MTD at all. But if they also receive a £10,000 AtW grant, their qualifying income is over £20,000. That brings them into the April 2028 group (£20,000 threshold). It probably would not occur to them that they might have to join MTD.

Gross qualifying income (fees + AtW grant)

MTD start date

£50,000 or more

April 2026

£30,000 to £49,999

April 2027

£20,000 to £29,999

April 2028

Below £20,000

Not yet mandated

Remember: qualifying income includes all your self-employment income before expenses, including the full value of any AtW grant.

Is this fair?

We understand why this feels unfair. The grant exists to remove a barrier to working, not to increase anyone’s income. And you don’t choose whether DWP pays the grant to you or directly to your support worker.

But HMRC’s reasoning is consistent: the grant is connected to your trade, it meets a cost that would otherwise fall on your business, and both payment routes should be treated the same way.

On that last point, at least, the ruling is fair. It removes the anomaly where two interpreters in identical circumstances could have had different MTD start dates depending on a DWP administrative decision.

And the critical point remains: your tax bill does not change. The grant income and the matching expense cancel each other out completely.

What you need to do

1. Record all AtW grant income in your accounting software, whether you receive it into your bank account or DWP pays your support worker directly. Use a separate income category to keep it distinct from your interpreting fees. Both routes count as gross income for MTD threshold purposes.

2. Record all support worker costs as a business expense, including costs you paid yourself and costs DWP paid directly to the support worker on your behalf. Where DWP pays your support worker directly, neither the grant income nor the support worker expense will actually go through your bank account, but you still need to record both entries in your accounting software so your accounts reflect the true position. This is what ensures your taxable profit is unchanged.

3. Check your total gross income. Add your interpreting fees and the full value of your AtW grant together, regardless of how the grant was paid. Compare that total against the MTD thresholds in the table above to find your start date.

4. Talk to your accountant. If you’re not sure how this applies to your specific situation, or if you need help setting up your software to record these entries, please get professional advice.

This is now a confirmed HMRC position. We wrote to HMRC on behalf of ASLI to get clarity on this issue, and they have responded with a definitive ruling supported by statutory references (sections 25 and 34 of the Income Tax (Trading and Other Income) Act 2005). There is no ambiguity. The guidance we’ve been giving in the webinars and FAQs has been correct.

Need help?

All ASLI members have access to a complimentary online meeting with me to discuss their accounting and tax affairs, including how AtW grants should be recorded in their software.

Book a call: calendly.com/noelguilford/asli 

Email: noel@guilfordaccounting.co.uk

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Lastest updates and guidance:

MTD Guide for interpreters

MTD Article