Does employed income count towards the MTD threshold?

No. Only self-employed and property income count as qualifying income. A performer earning £30,000 from gigs and £25,000 from a PAYE job would only count the £30,000.

Which tax year does HMRC use to test the threshold?

The return from two years prior. For the April 2026 start, HMRC looked at your 2024/25 Self Assessment return. For the April 2027 start at £30,000, it will look at your 2025/26 return.

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Making Tax Digital · Free tool

Does Making Tax Digital apply to you?

Q: Is the MTD threshold based on gross income or profit?

Gross income, before expenses and before agency commission. A performer earning £52,000 gross who claims £18,000 in legitimate expenses has a taxable profit of £34,000 but is still in scope, because the £52,000 is what counts.

MTD thresholds are based on gross income — your total fees before commission, expenses, and mileage. Not your profit, not your take-home. Making Tax Digital for Income Tax has been live since 6 April 2026 for gross income over £50,000.

Enter your figures to see where you stand for 2026/27 and the years ahead.

Making Tax Digital

Does MTD apply to you?

Enter your estimated self-employed income for the 2026/27 tax year (6 April 2026 to 5 April 2027). MTD is based on gross income, your total before expenses.

Total gig income (gross)

Total from all agencies and direct bookings, before expenses and before commission is deducted

Other self-employed income

Teaching, session work, or any other freelance earnings

This calculator is a guide only. Consult HMRC or an accountant for advice specific to your situation.

Why gross income catches more performers than they expect

Most performers think in net terms — what actually lands in the bank after the agency takes its cut. HMRC doesn’t. They count every fee at full value before anything comes off.

If Kingston Artistes pays you £800 and deducts £120 commission, your gross income for MTD purposes is £800 — not £680. Commission is an allowable expense, not a reduction in gross income. The same applies to mileage, equipment costs, and any other deductions. They reduce your tax bill, not your MTD threshold.

A working singer doing 60 gigs at £850 average has a gross income of £51,000, above the £50,000 threshold that has applied since 6 April 2026, even if their taxable profit is well below that after expenses.

What to do if MTD applies to you

Digital record-keeping software has been required since 6 April 2026: not a spreadsheet, not a notes app, not a shoebox of bank statements. Quarterly updates are due on 7 August, 7 November, 7 February and 7 May, and HMRC is not issuing penalty points for late quarterly updates in 2026/27.

Gigflow does this automatically. Every gig you add creates a timestamped digital record with the date, amount, venue, and category HMRC requires. Your records build themselves throughout the year.

For the full picture on what MTD involves — quarterly updates, deadlines, and exactly what changes — read the complete MTD guide for performers.

Your records, sorted from day one.

Gigflow keeps your gig income, mileage and expenses as digital records, aligned to the UK tax year.

Try Gigflow free →

No credit card required · UK performers only · Not HMRC-recognised software for MTD submissions

Your records, sorted from day one.

Gigflow keeps your gig income, mileage and expenses as digital records, aligned to the UK tax year.

Try Gigflow free →

No credit card required · UK performers only · Not HMRC-recognised software for MTD submissions

Frequently asked questions

Does MTD apply to PAYE income?

No. MTD for Income Tax only applies to self-employed and property income. If you also have a PAYE job, only your self-employed earnings count toward the threshold. A performer earning £30,000 from gigs and £25,000 from a day job would only count the £30,000.

What if my income varies significantly year to year?

HMRC tests the threshold against the Self Assessment return you filed two years earlier, so the April 2026 start was assessed on your 2024/25 return. Once you are in, you stay in. If your gross income later falls below the threshold, you must keep following the rules until it has stayed below for three consecutive tax years. HMRC will write to you when you come into scope.

Does gross income include VAT?

If you’re not VAT-registered — which most performers aren’t — this doesn’t apply to you. If you are VAT-registered, MTD for VAT is a separate obligation with different rules. The thresholds on this calculator refer to income before VAT where applicable. Most performers are below the £90,000 VAT registration threshold, so the question does not arise.

Does teaching income count toward the threshold?

Yes, if you're self-employed as a teacher. All self-employed income counts — gigs, teaching, session work, and any other freelance earnings all add together toward the threshold. Only PAYE income is excluded.

I'm under the threshold — do I need to do anything now?

Not for MTD, no. But the threshold drops to £30,000 in April 2027 and £20,000 in April 2028. If your income is growing, getting digital records in place now means you won't need to scramble when your threshold arrives. You'll also have a full year of clean data ready when it does.

How is gross income different from what I declare on my tax return?

Your Self Assessment return declares net profit — income minus allowable expenses. MTD thresholds are based on gross income, so you could be above the threshold while paying relatively little tax. A performer earning £52,000 gross who claims £18,000 in legitimate expenses has a taxable profit of £34,000 — but still falls under MTD from April 2026.