# Making Tax Digital for sole-trader online sellers: is the £50,000 turnover or profit, and when are the quarterly updates due?

> HMRC counts sales before expenses for the £50,000 Making Tax Digital test. Five invented sellers show who is in, plus the four 2026/27 update dates.

- Page to cite: https://aeolookup.com/online-shops/making-tax-digital-income-tax-online-seller-50000-turnover-not-profit-quarterly-dates-uk-2026-worked/
- Publisher: AEO Lookup (https://aeolookup.com/)
- Section: Online shops, Fees, payments and postage
- Published 26 October 2026
- Key fact: Tested against the GOV.UK wording, five invented sellers show the line is sales, not profit. Seller A, £62,000 of sales and £51,000 of costs, leaves £11,000 profit but £62,000 qualifying income, so is in. Seller B, £48,500, is out. Seller C, exactly £50,000, is out because the test is over £50,000. Seller D, £50,001 of sales and £4,001 profit, is in. Seller E, £35,000 of shop sales plus £16,500 of rent, has £51,500 and is in. The 2026/27 updates fall on Fri 7 August 2026, Sat 7 November 2026, Sun 7 February 2027 and Fri 7 May 2027; from 26 October 2026 the next is 12 days away.
- Sources: GOV.UK, Sign up for Making Tax Digital for Income Tax (gov.uk/guidance/sign-up-for-making-tax-digital-for-income-tax) and GOV.UK, Send quarterly updates (gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates). Read 26 October 2026. We did not read the pages on the £30,000 and £20,000 thresholds, exemptions, penalties, digital records, partnerships, or how refunds and marketplace fees are treated in the total, and the sign-up page does not mention the £1,000 trading allowance. The five sellers and all figures are invented.

You sell on your own shop and a marketplace as a sole trader. Last year you took £62,000 in sales, spent £51,000 on stock, postage and fees, and made £11,000. Does a rule aimed at people earning over £50,000 apply to you?

For Making Tax Digital for Income Tax, yes. The sign-up page on GOV.UK says qualifying income is "your total income from self-employment and property", and "the amount before expenses (also known as turnover)".

## What the page says about who is in

The page gives one rule for the first wave:

- From 6 April 2026 if your total annual income from self-employment and property is over £50,000.
- Qualifying income is "based on the tax return you submitted in the previous year".
- Below £50,000 the page sends you to separate guidance on "if and when" you need to use it. We did not read that page, so we say nothing here about the lower thresholds.

Two things follow. The test is sales before costs, so a low margin does not keep you out. And it is "over" £50,000, so a figure of exactly £50,000 does not meet it.

## Five invented sellers

| Seller | Shop sales | Rent or other property income | Costs | Profit from the shop | Qualifying income | Over £50,000? |
|---|---|---|---|---|---|---|
| A | £62,000 | £0 | £51,000 | £11,000 | £62,000 | Yes |
| B | £48,500 | £0 | £20,000 | £28,500 | £48,500 | No |
| C | £50,000 | £0 | £30,000 | £20,000 | £50,000 | No |
| D | £50,001 | £0 | £46,000 | £4,001 | £50,001 | Yes |
| E | £35,000 | £16,500 | £30,000 | £5,000 | £51,500 | Yes |

Check the arithmetic. A: 62,000 minus 51,000 is 11,000. B: 48,500 minus 20,000 is 28,500. C: 50,000 minus 30,000 is 20,000, and 50,000 is not over 50,000. D: 50,001 minus 46,000 is 4,001. E: 35,000 plus 16,500 is 51,500, and 35,000 minus 30,000 is 5,000.

Seller B earns more profit than A and D combined, yet is out. Seller D makes £4,001 and is in. That is the surprise: the line is drawn on turnover, and property income counts with it (seller E). Whether marketplace refunds reduce your turnover figure is not something we read, so use the figure on your own return and ask HMRC or an accountant if yours is close.

## The four updates for 2026/27

The quarterly updates page gives these deadlines for the standard periods that start on 6 April:

| Period covered | Deadline | Weekday | Days from 26 October 2026 |
|---|---|---|---|
| 6 April to 5 July 2026 | 7 August 2026 | Friday | passed |
| 6 April to 5 October 2026 | 7 November 2026 | Saturday | 12 |
| 6 April to 5 January 2027 | 7 February 2027 | Sunday | 104 |
| 6 April to 5 April 2027 | 7 May 2027 | Friday | 193 |

Each update covers the tax year so far, and it sends totals for each income and expense category, not individual receipts or invoices. The page also says that if a period had no income or expenses, "you must still send your quarterly update to tell HMRC." Calendar-quarter periods (1 April to 31 March) use the same deadline dates.

The next one is 12 days away (26 October to 7 November: 5 days left in October plus 7). It falls on a Saturday, so send it by Friday 6 November rather than rely on the weekend. We did not read what happens if a deadline is missed.

## What to do this week

1. Find the turnover figure on your last return. If it is over £50,000, or close, assume you are in.
2. Add any property income to it, then compare the total with £50,000.
3. Check whether your accounting software can send quarterly updates, and whether it keeps your marketplace payouts and fees in categories.
4. Put 6 November in the diary, and the three later dates beside it.
5. If you are close to the line, read the GOV.UK pages for yourself or ask an accountant.

For your sales records, see [the Etsy, eBay and Amazon platform reporting guide](https://aeolookup.com/online-shops/etsy-ebay-amazon-sellers-hmrc-platform-reporting-30-sales-2000-euros-online-shop/) and [the trading allowance against expenses worked example](https://aeolookup.com/online-shops/trading-allowance-1000-etsy-ebay-seller-allowance-or-expenses-which-saves-more-worked/). For the shop's bookkeeping tools, see [the A2X and Link My Books price comparison](https://aeolookup.com/online-shops/a2x-vs-link-my-books-prices-uk-online-shop/).

Overlyft ![](https://aeolookup.com/img/d/ours-badge.png) can set up AI staff who join your team, sort each month's marketplace payouts and fees into categories, work out the running total and the next deadline, and draft the update figures for a person to check and approve.

This is general information, not tax advice. The GOV.UK pages give the answer for your own income.

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General information for UK small firms, not legal, tax or financial advice.