Use your gross fees before fabric and haberdashery costs are deducted.
If you run a self-employed alterations, dressmaking or bespoke tailoring business, whether from home, a rented unit, or a market stall, Making Tax Digital applies to you the same way it applies to any sole trader. The detail worth understanding is how materials costs and bespoke deposits fit into your figures.
Yes, if your gross sewing business income, plus any other self-employment or rental income, exceeds the relevant threshold:
| Tax Year Assessed | Threshold | MTD Start Date |
|---|---|---|
| 2024–25 | Over £50,000 | 6 April 2026. Live since April 2026 |
| 2025–26 | Over £30,000 | 6 April 2027 |
| 2026–27 | Over £20,000 | 6 April 2028 |
Your gross income is your total fees received before expenses, fabric, haberdashery, and equipment costs are all deducted afterwards, not before, when checking your threshold.
Bespoke commissions, wedding dresses, made-to-measure suits, costume work, are typically booked with a deposit up front, with the balance due on collection or delivery. Most self-employed seamstresses and tailors use the cash basis, meaning a deposit counts as income when received, not when the finished garment is handed over, this can matter if a commission spans two tax years.
| Expense Category | Examples |
|---|---|
| Fabric and materials | When supplied by you for bespoke work, not when the client provides their own |
| Haberdashery | Thread, zips, buttons, interfacing, pattern paper |
| Equipment | Sewing machines, overlockers, pressing equipment, via capital allowances |
| Use of home | Simplified flat rate for a dedicated sewing room or workspace |
| Unit or stall costs | Rent for a workshop unit or market stall, if applicable |
Grace's combined income of £20,500 sits just above the £20,000 Phase 3 threshold, so she'll join MTD from April 2028, based on her 2026–27 income.
No, if the client supplies the fabric for an alteration or repair, there's no materials cost for you to claim on that job, your income and profit on it is simply your labour fee.
The same as any self-employed sole trader: over £50,000 gross income in 2024–25 means MTD from April 2026, over £30,000 in 2025–26 means April 2027, over £20,000 in 2026–27 means April 2028.
Under the cash basis, which most self-employed seamstresses and tailors use, a deposit counts as income in the tax year you actually receive it, not when the finished garment is delivered.
Yes, a sewing machine or overlocker used for your business is a capital item. Depending on the cost, it's typically claimed through the Annual Investment Allowance or standard capital allowances rather than as a simple one-off expense.
Yes, both are ordinary self-employment income and are simply combined into one gross total for your MTD threshold check, there's no separate treatment for the two types of work.
Any HMRC-recognised MTD software works. The main practical need is separating jobs where you supplied materials from ones where the client did, which standard software handles through simple expense categorisation.
Our free calculator checks your exact threshold, deadlines, and recommends the easiest software for your record-keeping.
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