Quick answer
Your salary doesn’t count towards the MTD threshold. Only your side business turnover and any property income do. If they add up to more than the threshold, you need MTD for that income, and you add your employment income in your final declaration as you do on a tax return now.
Examples
Salary | Side income | Qualifying income | In MTD? |
|---|---|---|---|
£60,000 | £12,000 freelance sales | £12,000 | No |
£35,000 | £24,000 freelance sales | £24,000 | From April 2028, if this is your 2026/27 figure |
£45,000 | £16,000 sales and £20,000 rent | £36,000 | From April 2027, if this is your 2025/26 figure |
What you send
Quarterly updates for your side business and any property income
A final declaration that includes your employment income, taken from your P60 and P11D
Turnover, not profit
The test uses sales before expenses. A side business with £25,000 of sales and £15,000 of costs still counts as £25,000.
Check yours with the MTD checker.