Frequently asked questions
Do I need Making Tax Digital?
If you're a sole trader or landlord and your gross self-employment plus property income was over £30,000 in 2025/26, you must use MTD from 6 April 2027. Over £50,000 in 2024/25 meant you started in April 2026, and over £20,000 in 2026/27 means April 2028. Use the free checker.
Is the threshold based on profit or turnover?
Turnover. It's your gross income from self-employment and property added together, before expenses. For jointly owned property, only your share counts.
Can I keep using a spreadsheet?
Yes. HMRC accepts spreadsheets as digital records, as long as you send your quarterly updates using MTD-compatible bridging software, which links to your spreadsheet. Some bridging software is free.
Do your spreadsheets submit to HMRC?
No. Our spreadsheets keep your records and work out the figures. You submit them with any MTD-compatible bridging software, including the free options listed on GOV.UK. That means you're never locked into one provider.
Why not just use free MTD software?
You can, and for some people that's the right choice. Our products suit people who want to understand MTD in plain English, keep their records in a spreadsheet they control, and pay once instead of signing up to a platform.
Is this tax advice?
No. We provide general information and record-keeping tools, checked against GOV.UK. For advice on your own situation, speak to an accountant or tax adviser.
What counts as qualifying income?
Your gross income from self-employment and UK property (and foreign property if you're UK resident), added together before expenses. Only your share of jointly owned property counts.
What doesn't count?
Employment income taxed through PAYE, State Pension and private pensions, dividends, and your share of partnership profit.
Will HMRC write to me?
HMRC checks your return and writes if you're over the threshold, but GOV.UK is clear that it's your responsibility to check, even without a letter.
Does joint property count towards the MTD threshold?
Only your share counts. If you own a property 50/50 that brings in £40,000 a year, £20,000 counts towards your threshold.
How do married couples split rental income?
Married couples and civil partners are taxed 50/50 by default, whatever the actual ownership split, unless they've sent HMRC a Form 17 declaration of beneficial interests.
Is mortgage interest an expense under MTD?
For residential lets, mortgage interest isn't deducted from profit. You get a tax credit instead: 20% in 2026/27, rising to 22% from 2027/28. Record it separately from other costs.
Are limited company landlords affected?
No. Property owned through a limited company pays Corporation Tax and is outside MTD for Income Tax.
Does MTD apply to me if I also have a job?
Your salary doesn't count towards the threshold. Only gross self-employment and property income count. If that's over £30,000 in 2025/26, you're in from April 2027.
Can I claim mileage under MTD?
Yes. You can still use HMRC's simplified mileage rate (45p a mile for the first 10,000 business miles, then 25p) instead of actual vehicle costs.
What if my turnover is under £90,000?
You can use simpler records and send a single total for expenses instead of a breakdown by category.
What happens after I buy?
You get an instant download link by email from Payhip. Spreadsheets work in Excel, Google Sheets, and LibreOffice, and the guide comes as a PDF and a Kindle ePub.
Do I get updates?
Fixes during the tax year are free; download again from your receipt email. Each new tax year has its own edition, and returning customers get 50% off.