Category 6
Self-Employed MTD
Self-employed traders above the income threshold must join MTD for Income Tax and report trading income digitally.
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.
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.