I have a job or a pension as well — how does MTD affect me?

Checked against GOV.UK on 14 August 2026

Most people in MTD have income from more than one place. The rule is consistent: only self-employment and property income drives MTD, but everything still lands on the tax return.

The threshold ignores them

Employment (PAYE) income, State Pension, private pensions, dividends and a partnership profit share do not count towards qualifying income. A landlord on a £60,000 salary with £14,000 of rent has qualifying income of £14,000.

Quarterly updates ignore them too

You only create digital records for self-employment and property income and expenses. Other income does not need digital records and does not go in a quarterly update.

But you can record them for a better estimate

Depending on your software and income sources you may be able to add other income — savings interest, for example — during the tax year. That income is not included in your quarterly updates, but the tax estimate you see after each update becomes more complete. HMRC's example is a landlord who is also employed and has savings interest: the estimate combines property figures from the updates, PAYE income added by HMRC, and savings interest if you choose to add it.

At the tax return, everything comes together

HMRC adds employment income, student and postgraduate loan plan type and PAYE repayments, state, private and occupational pensions, other taxable state benefits, CIS subcontractor deductions, Capital Gains Tax residential property disposals, and Marriage Allowance claims. You add savings interest, partnership profit share, dividends, payrolled benefits in kind not subject to Class 1A National Insurance, and anything else. You must check HMRC's figures before you submit.

If you are VAT registered as well

Your MTD for Income Tax penalty points are separate from your VAT penalty points. On software, check whether the product you already use for VAT also covers MTD for Income Tax, or whether your chosen income tax product can meet your VAT needs.

Sources

• Work out your qualifying income for Making Tax Digital for Income Tax (HMRC guidance)
• Use Making Tax Digital for Income Tax: send quarterly updates (HMRC guidance)
• Use Making Tax Digital for Income Tax: submit your tax return (HMRC guidance)
• Penalties for Making Tax Digital for Income Tax (HMRC guidance)
• Choose the right software for Making Tax Digital for Income Tax (HMRC guidance)

General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.

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