Translators & Interpreters · Updated July 2026
✓ HMRC-sourced

Making Tax Digital for Translators and Interpreters —
Agency, Direct & Platform Income Explained

📅 28 July 2026 ⏱ 7 min read Editorial policy ↗

Agency Work and Direct Clients Combine Into One Figure

Most self-employed translators and interpreters split their work between language service agencies (who take a margin before paying you a per-word or hourly rate) and direct clients they've built up relationships with over time. Agencies typically pay you the net rate after their margin, so what you're paid by the agency is your income from that job — unlike CIS trades, there's no gross-vs-net distinction to worry about here. But every agency payment and every direct client payment combines into the same total qualifying income.

Court and Public Sector Interpreting Has Its Own Rhythm

Interpreters working through public sector frameworks (courts, NHS, police) are often booked via a central booking system with fixed rates, sometimes including cancellation fees if a booking falls through late. All of this, including cancellation and no-show fees where you're still paid, counts as qualifying income the same as any other work.

Worked Example

Grace. Freelance translator and interpreter, working through two language agencies plus direct corporate clients.

Agency translation work (per-word rate, paid net by agencies): £19,800
Court and public sector interpreting bookings: £8,600
Direct corporate client translation: £6,200
Total qualifying income: £34,600 — above the £30,000 Phase 2 threshold. Grace joins MTD from April 2027. Because agencies pay her net of their margin, she doesn't need to gross anything up. what she's actually paid across all three income streams is her full qualifying income figure.

What You Can Claim

  • Translation software and CAT tools — SDL Trados, memoQ subscriptions
  • Professional body membership — ITI, CIOL registration and CPD
  • DBS checks required for court or public sector work
  • Home office costs proportionate to business use
  • Travel costs to interpreting assignments at 45p/mile, or public transport fares
  • Professional indemnity insurance
  • Specialist dictionaries and reference subscriptions
Quick Check
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Best MTD Software for Translators & Interpreters

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Frequently Asked Questions

Do I need to gross up what agencies pay me?

No, unlike CIS trades, agencies pay you the actual amount after their margin, and that's your income from that job. There's no gross-vs-net adjustment needed for MTD purposes.

Do court interpreting cancellation fees count as income?

Yes, if you're paid a cancellation or no-show fee for a booking that falls through, it counts as qualifying income the same as a completed assignment.

I work through several agencies. Do I add all their payments together?

Yes, all self-employment income combines into one qualifying income figure, regardless of how many agencies or direct clients you work with.

Can I claim my CAT tool subscription as a business expense?

Yes, software directly used for your translation work, including CAT tools and terminology databases, is a normal allowable business expense.

Does public sector interpreting work differently to private agency work for MTD?

No, income is income regardless of the source. Court, NHS, police, and private agency work all combine into the same qualifying income figure.

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