ReceiptTrack
What counts as qualifying income for Making Tax Digital?
Qualifying income for MTD Income Tax is generally your self-employment and property income. PAYE employment income does not count toward the MTD qualifying-income threshold. Qualifying income is mainly about the type and gross amount of income HMRC counts for MTD Income Tax. The messy situations are mixed income, jointly owned property, part-year trading, overseas residence, and people who have PAYE income as well as a small trade. A practical guide to qualifying income: what counts, what usually does not, and why PAYE income causes confusion.
Key takeaways
- Think self-employment income plus property income.
- Do not include PAYE salary in the MTD qualifying-income threshold.
- If you have mixed income, write it down clearly before deciding what applies.
- Classify each income stream before adding numbers together.
- The word "income" matters: do not silently switch to profit or cash left over.
- Mixed-income cases are where a short accountant conversation can save a lot of confusion.