Boxed Off Accounts › Do I have to?
Making Tax Digital
Most people who ask have already done the sum wrong. Here’s the one that counts.
Take the money that came in from working for yourself. Add the rent from any property you let out. Before any costs come off either. If that total was more than £50,000 on your 2024/25 return - the one that was due by 31 January 2026 - you’ve been in since 6 April 2026.
That’s it. Not your profit. Not what reached your bank. The money in, added up.
So this person is in - even though neither number felt big on its own, and even though after costs they probably made a lot less than £52,000. It’s the money in that decides it, not the money kept.
Materials, the van, the mortgage on the flat, the letting agent’s cut - none of it comes off before you compare to £50,000. If an agent takes their fee and pays you the rest, the number is the full rent, not what landed.
People check each one against £50,000 on its own, see two small numbers, and relax. It’s the total.
If you’re a subcontractor, it’s what you invoiced before the 20% came off. £58,000 invoiced and £46,000 in the bank is £58,000 to HMRC. More on that here.
The line drops to £30,000 from 6 April 2027 - decided by your 2025/26 return, the one due by 31 January 2027. Then to £20,000 from April 2028. A lot of hairdressers, cleaners, drivers and small landlords who are comfortably out today are in from 2027.
And once you’re in, you generally stay in until the total has been under the line for three tax years running. One quiet year doesn’t get you out.
Had a letter from HMRC saying they’ve signed you up? Then you’re in for now whatever the sum says, and it’s worth reading what the letter actually wants.
The checker asks up to six questions and takes about a minute. It works in ranges, so you don’t need exact figures, and you get the answer on screen without giving us anything.
General information about how the rules work, correct as at September 2026. Not advice about your own tax position. Software is HMRC-recognised.