TaxYearSheetsLast checked by hand against GOV.UK: 10 October 2026. Sources are linked in each section. HMRC updates its guidance, so always check the source before you act.
What counts
Your total income from self-employment and property, before expenses (turnover), from all your self-employment and property sources added together.
GOV.UK's example: £25,000 of rental income plus £27,000 of self-employment income gives qualifying income of £52,000.
- Your share of income from a jointly owned property (see MTD for joint property owners).
- If you were UK tax resident: UK and foreign property income, plus your self-employment income.
- If you use the cash basis and are VAT registered, VAT counts if you choose to include it in your business income.
- Property or trading income you're entitled to as a beneficiary of a bare trust.
Source: GOV.UK – Work out your qualifying income for MTD for Income Tax.
What doesn't count
- Employment income (PAYE)
- Your share of profit from a partnership as an individual partner
- Dividends, including from your own company
- The State Pension and private pensions
- Transition profits from basis period reform
- Qualifying care relief (for example foster or kinship carers)
- Income from UK REITs or Property Authorised Investment Funds
- One-off transactions in UK land that fall within a single tax year
If you have self-employment or property income alongside these, you could still need MTD.
Source: GOV.UK – What's not included in your qualifying income.
Special cases
- New sole trader, part year: HMRC annualises your self-employment income if it has the information – 6 months' trading is doubled.
- Property, part year: you need to annualise property income yourself.
- One income source stopped: it still counts if you have another continuing self-employment or property source.
- All sources stopped before 6 April 2026: you won't need MTD, but if your 2025/26 return hasn't been sent yet, GOV.UK says to contact HMRC so it doesn't sign you up.
Then check the thresholds
Over £50,000 in 2024/25 means MTD from April 2026; over £30,000 in 2025/26 means April 2027; over £20,000 in 2026/27 means April 2028. Put your figures into the free MTD checker to see your start date and deadlines.
Questions
Does my salary count towards MTD qualifying income?
No. Employment income (PAYE) does not count. Nor do pensions, dividends or your share of profit from a partnership as an individual partner. Only self-employment and property income counts.
Is qualifying income before or after expenses?
Before. GOV.UK describes it as the amount before expenses, also known as turnover.
Which year's income does HMRC look at?
HMRC assesses qualifying income for a tax year by checking the Self Assessment return you submitted for the earlier tax year – for example your 2025 to 2026 return decides whether you need MTD from April 2027.