Making Tax Digital for online sellers
Last updated 28 October 2026. Every fact below is checked against the sources listed at the end. General information, not tax advice.
Short answer: If your 2025 to 2026 tax return shows qualifying income over £30,000, you need to use MTD for Income Tax from 6 April 2027. Qualifying income is your total turnover from self-employment and property: the amount before expenses, taken from the tax return you submitted for the previous tax year. It can come from more than one source. Quarterly updates are totals of your self-employment and property income and expenses. They're summaries, not tax returns, and HMRC doesn't receive individual receipts or invoices.
Etsy sellers
- Which Etsy report do I need for Making Tax Digital?The Etsy file to use for MTD records is the monthly statement CSV. Where to download it, what's in it and how to split i…
- Is my Etsy payout my turnover for MTD?Etsy pays you after fees, so your payouts are lower than your turnover. How gross and net work for MTD records, with a w…
- Do Etsy sales count towards the £30,000 MTD threshold?How Etsy sales count towards the £30,000 Making Tax Digital threshold from April 2027: gross, not payouts, added to othe…
- Etsy sales and MTD quarterly updatesHow to turn Etsy sales into Making Tax Digital quarterly updates for 2027 to 2028: the periods, deadlines and cumulative…
eBay sellers
- Which eBay report do I need for Making Tax Digital?The eBay file to use for MTD records is the Transaction report. Where to download it, what's in it and how to split it b…
- Is my eBay payout my turnover for MTD?eBay pays you after fees, so your payouts are lower than your turnover. How gross and net work for MTD records, with a w…
- Do eBay sales count towards the £30,000 MTD threshold?How eBay sales count towards the £30,000 Making Tax Digital threshold from April 2027: gross, not payouts, added to othe…
- eBay sales and MTD quarterly updatesHow to turn eBay sales into Making Tax Digital quarterly updates for 2027 to 2028: the periods, deadlines and cumulative…
Amazon sellers
- Which Amazon report do I need for Making Tax Digital?The Amazon file to use for MTD records is the Flat File V2 settlement report. Where to download it, what's in it and how…
- Is my Amazon payout my turnover for MTD?Amazon pays you after fees, so your payouts are lower than your turnover. How gross and net work for MTD records, with a…
- Do Amazon sales count towards the £30,000 MTD threshold?How Amazon sales count towards the £30,000 Making Tax Digital threshold from April 2027: gross, not payouts, added to ot…
- Amazon sales and MTD quarterly updatesHow to turn Amazon sales into Making Tax Digital quarterly updates for 2027 to 2028: the periods, deadlines and cumulati…
Shopify sellers
- Which Shopify report do I need for Making Tax Digital?The Shopify file to use for MTD records is the Shopify Payments transactions export. Where to download it, what's in it …
- Is my Shopify payout my turnover for MTD?Shopify pays you after fees, so your payouts are lower than your turnover. How gross and net work for MTD records, with …
- Do Shopify sales count towards the £30,000 MTD threshold?How Shopify sales count towards the £30,000 Making Tax Digital threshold from April 2027: gross, not payouts, added to o…
- Shopify sales and MTD quarterly updatesHow to turn Shopify sales into Making Tax Digital quarterly updates for 2027 to 2028: the periods, deadlines and cumulat…
PayPal sellers
- Which PayPal report do I need for Making Tax Digital?The PayPal file to use for MTD records is the Activity Download report. Where to download it, what's in it and how to sp…
- Is my PayPal payout my turnover for MTD?PayPal pays you after fees, so your payouts are lower than your turnover. How gross and net work for MTD records, with a…
Vinted, Depop and TikTok Shop (not supported by TidyTill yet)
- Vinted sellers and Making Tax DigitalDo Vinted sellers need Making Tax Digital? When selling counts as trading, what Vinted lets you download, and how platfo…
- Depop sellers and Making Tax DigitalDo Depop sellers need Making Tax Digital? When selling counts as trading, what Depop lets you download, and how platform…
- TikTok Shop sellers and Making Tax DigitalDo TikTok Shop sellers need Making Tax Digital? When selling counts as trading, what TikTok Shop lets you download, and …
Deadlines
- MTD quarterly update deadlines for 2026 to 2027Making Tax Digital for Income Tax deadlines for the 2026 to 2027 tax year: the four quarterly updates, the tax return da…
- MTD quarterly update deadlines for 2027 to 2028Making Tax Digital for Income Tax deadlines for the 2027 to 2028 tax year: the four quarterly updates, the tax return da…
- MTD quarterly update 1 of 2027 to 2028: due 7 August 2027MTD for Income Tax quarterly update 1 of 2027 to 2028 covers 6 Apr 2027 to 5 Jul 2027 and is due by 7 August 2027. What …
- MTD quarterly update 2 of 2027 to 2028: due 7 November 2027MTD for Income Tax quarterly update 2 of 2027 to 2028 covers 6 Apr 2027 to 5 Oct 2027 and is due by 7 November 2027. Wha…
- MTD quarterly update 3 of 2027 to 2028: due 7 February 2028MTD for Income Tax quarterly update 3 of 2027 to 2028 covers 6 Apr 2027 to 5 Jan 2028 and is due by 7 February 2028. Wha…
- MTD quarterly update 4 of 2027 to 2028: due 7 May 2028MTD for Income Tax quarterly update 4 of 2027 to 2028 covers 6 Apr 2027 to 5 Apr 2028 and is due by 7 May 2028. What to …
- MTD quarterly update deadlines for 2028 to 2029Making Tax Digital for Income Tax deadlines for the 2028 to 2029 tax year: the four quarterly updates, the tax return da…
- MTD calendar update periods (1 April quarters)Making Tax Digital calendar update periods run from 1 April. Who should use them, the dates for 2027 to 2028, and how to…
Thresholds and HMRC letters
- Got an HMRC letter about Making Tax Digital and £30,000?Got a letter from HMRC saying you need Making Tax Digital from April 2027? What it means for online sellers, what to che…
- What counts as qualifying income for MTD?What counts as qualifying income for Making Tax Digital: gross self-employment and property income from your previous re…
- The £20,000 MTD threshold from April 2028Making Tax Digital for Income Tax reaches sole traders over £20,000 from 6 April 2028, based on the 2026 to 2027 return.…
Topics and glossary
- The £1,000 trading allowance and Making Tax DigitalHow the £1,000 trading allowance works for people selling online, when you must register for Self Assessment, and how it…
- Digital platform reporting to HMRC and your MTD recordsSince 2024 marketplaces report sellers to HMRC. What the platform report shows, the 30 sales / €2,000 threshold, and why…
- Using spreadsheets for MTD: bridging software and digital linksCan online sellers use spreadsheets for Making Tax Digital? Yes, with bridging software and digital links. What counts a…
- Making Tax Digital glossary for online sellersPlain-English definitions of Making Tax Digital terms for online sellers: qualifying income, quarterly updates, digital …
Worked example: one seller, three platforms
Example figures A 2025 to 2026 tax year. Made-up figures for a fictional seller, not real data.
| Platform | Turnover | Paid out |
|---|---|---|
| Etsy | £14,200.00 | £11,960.00 |
| eBay | £9,800.00 | £8,520.00 |
| Amazon | £7,400.00 | £5,650.00 |
| Total | £31,400.00 | £26,130.00 |
Payouts total £26,130, under £30,000, but turnover is £31,400, so MTD applies from 6 April 2027.
Turn your marketplace exports into MTD-ready records
TidyTill reads Etsy, eBay, Amazon, Shopify and PayPal exports, works out gross turnover, splits it into MTD periods and flags gaps and duplicates. Upload your exports and see your totals, quarters and Health Check free before you pay. Then £19 one-off for a workbook or £49 a year for unlimited workbooks. Paid workbook downloads open very soon; the free preview works now.
Try the free preview Get launch updatesQuestions
Do I need MTD if I sell online?
You only need to use it if you're registered for Self Assessment, have submitted a tax return, and get income from self-employment as a sole trader, property as a landlord, or both.
When is the first deadline for the April 2027 group?
7 August 2027. Standard update periods (the default, aligned to the 6 April to 5 April tax year): 6 April to 5 July, due 7 August; 6 April to 5 October, due 7 November; 6 April to 5 January, due 7 February; 6 April to 5 April, due 7 May of the following tax year.
Will HMRC write to me?
If HMRC reviews your return and finds your income is above the relevant threshold, it will write to you confirming that you need to use MTD for Income Tax by the start of the next tax year. Even if you don't get a letter, you must still check your qualifying income yourself and sign up if you need to.
Sources
- Using Making Tax Digital for Income Tax for the first time (GOV.UK, checked 28 October 2026)
- Sole traders and landlords earning more than £30,000 urged to act now (HMRC, 5 October 2026) (GOV.UK, checked 28 October 2026)
- Work out your qualifying income for Making Tax Digital for Income Tax (GOV.UK, checked 28 October 2026)
- Send quarterly updates (Making Tax Digital for Income Tax) (GOV.UK, checked 28 October 2026)
TidyTill is a record-keeping aid only. This page is general information, not tax advice. TidyTill is not HMRC-recognised software and it doesn't submit anything to HMRC: you send quarterly updates and your tax return through HMRC-recognised software. Rules and dates can change, so check GOV.UK or ask an accountant about your own situation.