Making Tax Digital for side hustles: assessment years and thresholds
Checked against official guidance: 26 October 2026.
One current-year sales figure cannot tell you when you must join MTD. HMRC uses qualifying income in a specified assessment year, and eligibility and exemptions also matter.
| Assessment year | Qualifying income above | Start date |
|---|---|---|
| 2024/25 | £50,000 | 6 April 2026 |
| 2025/26 | £30,000 | 6 April 2027 |
| 2026/27 | £20,000 | 6 April 2028 |
What qualifying income means
It generally combines gross self-employment and property income before expenses or allowances. PAYE salary is not added to this threshold. Include all relevant sources and use HMRC’s guidance on your circumstances.
Example
£26,000 gross self-employment income and £8,000 gross property income in 2025/26 total £34,000, above the £30,000 threshold for April 2027. A £50,000 PAYE salary does not enter that sum. Expenses do not reduce gross qualifying income.
Eligibility and exemptions
HMRC’s rules concern sole traders and landlords registered for Self Assessment. Partnerships have a separate future timetable. Some exemptions are automatic; others require an application, including digital exclusion in qualifying circumstances. Do not assume a low estimate of profit gives an exemption.
What changes
People in scope need digital records, compatible software and quarterly updates. MTD does not itself turn the normal income-tax payment timetable into quarterly tax payments. Check the official tool even if you have not received a letter.
HMRC’s eligibility guidance and checker · Exemption guidance · Tax-return deadlines