Shopify · £30,000 threshold

Do Shopify sales count towards the £30,000 MTD threshold?

Last updated 28 October 2026. Every fact below is checked against the sources listed at the end. General information, not tax advice.

Short answer: Yes, if you're selling on Shopify as a sole trader. 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. That means your gross Shopify sales count, not the smaller amount Shopify pays out.

Who the £30,000 test applies to

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.

Employment (PAYE) income, your share of partnership profit as an individual partner, dividends, the State Pension and private pensions don't count towards qualifying income.

Selling your own unwanted things is different from trading. If you're selling your own personal possessions you probably don't have to pay Income Tax on them. Selling a single item (or a set) for more than £6,000 may mean Capital Gains Tax. If you sell goods you bought intending to sell for a profit, or goods you made (including items made as a hobby), you're probably trading. Add this to any other trading income; if the total is over the £1,000 trading allowance for the tax year, you need to tell HMRC.

The thresholds and start dates

Tax return	Qualifying income	MTD from
2024 to 2025	over £50,000	6 April 2026
2025 to 2026	over £30,000	6 April 2027
2026 to 2027	over £20,000	6 April 2028

If your 2024 to 2025 tax return showed qualifying income over £50,000, you need to use MTD for Income Tax from 6 April 2026. If your 2026 to 2027 tax return shows qualifying income over £20,000, you need to use MTD for Income Tax from 6 April 2028. 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. More in Got an HMRC letter about MTD?

Worked example: payouts under £30,000, turnover over it

Example figures A full 2025 to 2026 tax year selling only on Shopify. Made-up figures for a fictional seller, not real data.

Line	Amount
Gross sales less refunds (turnover)	£30,600.00
Shopify fees and costs taken before payout	−£1,020.00
Total paid out to the bank	£29,580.00
Threshold for April 2027	£30,000.00

The payouts (£29,580.00) are under £30,000, but turnover (£30,600.00) is over it. If that turnover is on the 2025 to 2026 return, MTD applies from 6 April 2027.

Turn your Shopify 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.

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Questions

What if I sell on other platforms too?

All your self-employment turnover is added together, plus any property income. HMRC's own example: £25,000 of rental income plus £27,000 of self-employment income is qualifying income of £52,000.

I've just started selling. How is a part year treated?

For sole traders, HMRC annualises qualifying income where it has the information: if you've only traded for 6 months in your first tax year, it doubles your income to work out qualifying income.

What if my turnover later drops?

Once you've started, if your qualifying income drops below the relevant threshold for 3 tax years in a row, you can choose to opt out.

Are there exemptions?

Some people are exempt from MTD for Income Tax, for example if they're digitally excluded. Exempt people still report income in a Self Assessment return as normal.

Sources

Viewing and exporting your Shopify Payments payout details (Shopify Help Centre, checked 28 October 2026)
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)
Check if you need to tell HMRC about your income from online platforms (GOV.UK, checked 28 October 2026)
Find out if you can get an exemption from 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.