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Self-Employed MTD
If you work for yourself, trading profits count toward MTD thresholds. When in scope you report business income and allowable costs digitally through the year.
- Register for Self Assessment if you are not already
- All trading income counts — including side gigs and platforms
- National Insurance on profits is still calculated via Self Assessment
What it is
If you work for yourself (not through PAYE), your trading profits count toward MTD thresholds. When in scope, you report business income and allowable expenses through quarterly updates and a final declaration.
CIS subcontractors receive deductions at source but still report income and may claim expenses. Casual or part-time self-employment can push you over the threshold when combined with other qualifying income.
Who it applies to
Self-employed individuals with qualifying income above HMRC’s threshold who are registered for Self Assessment.
What you need to do
- Register for Self Assessment if you are not already.
- Sign up for MTD for Income Tax when HMRC tells you to or when you exceed the threshold.
- Track all business income and allowable expenses digitally.
Key points
- Side gigs and casual self-employment may count toward your total qualifying income.
- National Insurance may still be due on profits through Self Assessment.
Common mistakes to avoid
- Not registering by 5 October after the tax year you started trading
- Forgetting platform fees (Uber, Etsy, etc.) when calculating profit
- Treating all money in the bank as income without deducting allowable costs
How SelfSubmit helps
SelfSubmit gives each business type its own simple income and expense form — from taxi drivers and trades to cleaners, freelancers, and landlords.