Qualifying Income (The £30k/£50k Thresholds)

URGENT: The April 2026 Deadline Is Weeks Away

If your qualifying income exceeded £50,000 in the 2024/25 tax year, your MTD start date is 6 April 2026. Register with Taxd now to avoid HMRC penalty points.

Direct Answer

Qualifying Income is the total "gross" income (total sales or rent before expenses) from all your self-employed businesses and UK property sources.

The Deadlines

• If your qualifying income is over £50,000, you must join MTD by 6 April 2026.
• If your qualifying income is over £30,000, you must join MTD by 6 April 2027.

Important: Gross, Not Profit

This is based on your gross turnover, not your profit. If you earn £31,000 but have £10,000 in expenses, you are still mandated for MTD because your gross income exceeds the £30k threshold.

What Counts — and What Does Not

Qualifying income includes:

• Self-employment income (sole trader turnover)
• UK property income (rental receipts)

Not included:

• PAYE employment income (your salary does not count)
• Dividends or investment income

So if you earn a £40,000 salary plus £15,000 in rent, your qualifying income is £15,000 — below the threshold.

Which Year's Income?

HMRC uses your previous tax year's qualifying income to determine if you are mandated. If your qualifying income in 2024/25 exceeded £50,000, you must join MTD from 6 April 2026 — even if your income this year is lower.

How Taxd Helps

• Real-Time Income Tracking: Monitor your gross income with Keptd's dashboard as the year progresses.
• Threshold Alerts: Taxd flags when you are within 10% of the £30k or £50k limit so you can prepare in advance.
• One-Flow Onboarding: Already over the threshold? Taxd guides you through MTD registration and setup in a single, simple flow.

Unsure if your income qualifies? Use Keptd to check your gross income figure now — and let Taxd handle the rest.