What counts as qualifying income for Making Tax Digital?

What counts as qualifying income for Making Tax Digital? Qualifying income is your self-employment and property income added together before expenses, taken from your tax return two years earlier. For a 6 April 2027 start, HMRC uses your 2025-26 return and the £30,000 line. No. It is your income before expenses, which HMRC also calls turnover. Someone who takes £35,000 and spends £15,000 on materials has qualifying income of £35,000, not £20,000. No. Pay from employment, dividends, the State Pension, private pensions and your share of a partnership's profit are all left out. Only self-employment and property income count. The tax return two years before the year you would start. For a 6 April 2027 start, that is your 2025-26 return, which is due by 31 January 2027. Read the full answer, with every source, at rightotax.co.uk.