Qualifying income for Making Tax Digital
Whether you need Making Tax Digital depends on your qualifying income: your total income from self-employment and property, before expenses.
What counts
- Turnover (gross income) from all your self-employed businesses, added together.
- Income from property, such as rent, before expenses. If you are UK resident, this includes foreign property and foreign self-employment income.
- For jointly owned property, only your share. If you only receive your share after expenses, use that net figure.
- If you use the cash basis, you can choose whether to include VAT; if you include it, it counts.
What doesn't count
- Wages from employment (PAYE)
- Your share of profits from a partnership
- Dividends, including from your own limited company
- State Pension and private pensions
- Transition profits from the basis period reform
Examples
| Situation | Qualifying income |
|---|---|
| £25,000 rental income and £27,000 self-employment turnover | £52,000 |
| A flat jointly owned with a sibling earns £50,000 rent, split 50/50; no self-employment | £25,000 |
| £40,000 salary, £15,000 rental income | £15,000 (salary doesn't count) |
| Director of your own company paying yourself £60,000 in dividends | £0 |
Which tax year matters?
HMRC uses the figure from your Self Assessment return for an earlier tax year: income above £50,000 in 2024 to 2025 means Making Tax Digital from April 2026, above £30,000 in 2025 to 2026 means from April 2027, and above £20,000 in 2026 to 2027 means from April 2028. If you started trading part way through a year, your self-employment income is scaled up to a full year.
Use the checker to see your start date.
Source: GOV.UK: Work out your qualifying income. Checked October 2026.