Two numbers, two jobs
| Turnover (takings) | Profit | |
|---|---|---|
| What it is | Everything customers or tenants paid you | Turnover minus allowable expenses |
| Used for | Deciding if MTD applies | Working out how much tax you pay |
What counts
- Gross self-employment turnover from all your sole-trader businesses
- Gross rent from UK property and overseas property (your share)
What doesn’t count
- Wages from a job (PAYE)
- Pensions, savings interest, dividends
- Partnership income (for now)
Three quick examples
| Who | Takings / rent | Profit | MTD? |
|---|---|---|---|
| Courier with high fuel and van costs | £38,000 | £17,000 | Yes, from April 2027 |
| Builder paid under CIS | £52,000 (gross, before CIS) | £31,000 | Yes, since April 2026 |
| Nurse (employed) letting one flat | £14,400 rent | £6,000 | Not yet – wages don’t count |
Illustrative figures.
Watch out for “net” payouts
If a platform, letting agent or contractor pays you after taking fees or tax, your turnover is the amount before those deductions. Booking-app commission, agent fees and CIS deductions don’t reduce your qualifying income.
Sources
- Find out if and when you need to use Making Tax Digital for Income Tax – GOV.UK
- Work out your qualifying income for Making Tax Digital for Income Tax – GOV.UK
- Send quarterly updates using Making Tax Digital for Income Tax – GOV.UK
- Find software that works with Making Tax Digital for Income Tax – GOV.UK
- Penalties for Making Tax Digital for Income Tax – GOV.UK
General information about HMRC’s Making Tax Digital rules as of 26 October 2026, not tax advice. MTD Match is not affiliated with HMRC.