Quick answer
If you claimed averaging relief as someone who personally creates literary or artistic works on your 2024/25 return, you’re exempt from MTD until April 2027. Otherwise, your gross creative income, such as royalties, advances, commissions, sales and fees, counts towards the threshold.
Key facts
Averaging relief claimed on your 2024/25 return: exempt until April 2027
Creators can average profits over 2 years
Royalties, advances, commissions and fees all count
Employment income from teaching or other jobs doesn’t
Averaging relief
If you personally create literary or artistic works, you can average profits over 2 years, which helps when a big advance or a good year is followed by a quiet one. It applies to profits from selling your works or from royalties for allowing others to reproduce them.
The exemption
HMRC’s exemption list includes anyone who claimed averaging relief as a creator on their 2024/25 return, until April 2027. It ends before 2027/28 if your qualifying income is over £30,000 for 2025/26.
What counts towards the threshold
Book advances and royalties
Sales of artwork and prints
Commissions and licensing fees
Performance and session fees if self-employed
Teaching or workshops you run yourself
Start date | Qualifying income over | Based on your tax return for |
|---|---|---|
6 April 2026 | £50,000 | 2024/25 |
6 April 2027 | £30,000 | 2025/26 |
6 April 2028 | £20,000 | 2026/27 |
Common expenses
Materials, instruments and equipment
Agent and gallery commission
Studio or rehearsal space
Costumes used for performing, if not everyday clothing
See MTD exemptions for the full list.