The rule
Qualifying income = self-employed takings (all businesses) + rent received (UK and overseas). Your salary is ignored.
| Situation | Qualifying income | MTD from |
|---|---|---|
| Teacher (£42k salary) + tutoring £9k | £9,000 | Not yet |
| NHS nurse + two rented flats bringing in £27k | £27,000 | Planned for April 2028 |
| Office worker + Etsy shop £14k + rented flat £18k | £32,000 | April 2027 |
| Delivery driver £24k + personal trainer £11k | £35,000 | April 2027 |
Illustrative figures for 2025/26.
Under £1,000?
If your side self-employed takings are £1,000 or less a year, the trading allowance means you don’t need to declare them. The same £1,000 limit applies separately to property income.
Once you’re in
Each business and each property type (UK, overseas) gets its own quarterly update – so someone with a side business and a rental sends two sets of figures each quarter. Software or an accountant handles this together.
Sources
- Find out if and when you need to use Making Tax Digital for Income Tax – GOV.UK
- Work out your qualifying income for Making Tax Digital for Income Tax – GOV.UK
- Send quarterly updates using Making Tax Digital for Income Tax – GOV.UK
- Find software that works with Making Tax Digital for Income Tax – GOV.UK
- Penalties for Making Tax Digital for Income Tax – GOV.UK
General information about HMRC’s Making Tax Digital rules as of 26 October 2026, not tax advice. MTD Match is not affiliated with HMRC.