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SHORT ANSWER Turnover, not profit. For Making Tax Digital for Income Tax, HMRC generally looks at your qualifying income from self-employment and property before expenses are deducted. Let's use an example Imagine you're self-employed. During the 2025/26 tax year: Turnover £40,000 Total money your business received. Expenses £15,000 What you spent running your business. Profit £25,000 What's left after expenses. Even though your profit is only £25,000, your turnover is £40,00