Quick answer
Qualifying income is your total self-employment turnover plus your gross property income, before expenses, taken from the tax return HMRC uses for each start date. Employment, pensions, dividends and your share of partnership profits don’t count. If you own property jointly, only your share counts.
What counts
Self-employment income before expenses (turnover)
UK property income before expenses
Overseas property income, if you’re UK resident
Your share of income from jointly owned property
Income from bare trusts and interest-in-possession trusts that you’re entitled to
What doesn’t count
Employment income taxed through PAYE
State and private pensions
Dividends
Your share of profit from a partnership
Income from REITs or PAIFs
Transition profits from basis period reform
One-off UK land transactions that aren’t a continuing source of income
Worked examples
Situation | Qualifying income |
|---|---|
Sole trader with £42,000 sales, plus a £30,000 salary | £42,000 |
Landlord with £36,000 rent and £20,000 of mortgage interest | £36,000 |
Half-share of a flat let for £30,000, no other business | £15,000 |
Partner in a partnership earning £80,000, no other business | £0 |
If one business has stopped
If you stop one income source but others continue, the stopped income still counts when HMRC works out your qualifying income for that year. If all your self-employment and property income stopped before 6 April 2026, you don’t need to use MTD for Income Tax.
Which year’s figures count
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 |
Check yours with the MTD checker.