Two businesses under MTD: one threshold, separate updates
If you run a trade and let a property, or run two trades, Making Tax Digital treats them as separate businesses. The threshold that decides whether you're in adds everything together. The quarterly updates that follow do not: each business sends its own. That's the two-part rule this page unpacks, because most explanations only tell you half of it.
Half one: the threshold combines everything
Whether MTD applies is tested on your qualifying income: your gross income from self-employment and property, added together before expenses. gov.uk's own example is £25,000 of rental income plus £27,000 of self-employment income, which makes £52,000 of qualifying income. Over the £50,000 line, even though neither source is over it alone. That's the rental income trap, and it's turnover, not profit.
Half two: the updates stay separate
Once you're in, gov.uk's instruction is one sentence: "You need to send your quarterly updates to HMRC every 3 months for each self-employment and property business you have."
Each business sends its own totals. An update covers one business's income and expense categories, so each business's records need to stand on their own through the year.
What a year looks like with two businesses
An electrician with a rental flat sends eight quarterly updates a year: four for the trade, four for the property, on the same four deadlines.
| Deadline | Trade | Property |
|---|---|---|
| 7 August | Update 1 | Update 1 |
| 7 November | Update 2 | Update 2 |
| 7 February | Update 3 | Update 3 |
| 7 May | Update 4 | Update 4 |
Eight sends sounds heavier than it is. Updates are cumulative totals pulled from records you already keep, so if the records build as you go, an update is a review and a send, not a bookkeeping session.
One detail per source: the calendar quarters election
If you prefer update periods that follow calendar months, the calendar quarters election is made "for each source of income" in your software, before that year's first update. You choose it per business, and the deadlines stay the same.
Still one tax return
The updates run per business through the year, then everything meets in one place: the tax return your software submits by 31 January, covering all your income together, the same as before. MTD didn't multiply your tax returns, only your in-year sends.
Quick answers
Do I send one combined update for everything?
No. gov.uk: quarterly updates are sent "for each self-employment and property business you have". Each business sends its own.
How is the threshold tested with two income sources?
Added together, gross. gov.uk's example: £25,000 rental plus £27,000 self-employment is £52,000 of qualifying income, over the £50,000 line though neither source crosses it alone.
Do I still file one tax return?
Yes. Quarterly updates run per business; the tax return brings everything together by 31 January, as before.
My second business is small. Does it still need its own updates?
gov.uk's rule is written per business, and it doesn't set a size carve-out for one source once you're in MTD.
Records that build themselves
SoleTax captures the trade side as it happens: receipts read and categorised, miles tracked, invoices logged, and the tax to set aside always on screen. 14 days free, no card needed.
Join the betaSources: gov.uk, use Making Tax Digital for Income Tax: send quarterly updates (updated 2 June 2026); work out your qualifying income for Making Tax Digital for Income Tax (updated 29 January 2026). Checked on 8 July 2026.