A typical VA business is a patchwork: a few monthly retainer clients, the odd project-based job, maybe some work found through Upwork or Fiverr. None of that changes whether MTD applies, but working out how it all adds up, and what HMRC already knows about you, is where most confusion sits.
Five clients paying £400 a month each feels like five small, separate incomes. For MTD purposes, it's one self-employment business earning £2,000 a month, and every client's payment is added together as a single gross income figure against the threshold. This is the single most common miscalculation VAs make when estimating whether they're close to needing MTD.
If any of your work comes through Upwork, Fiverr, or similar marketplaces, HMRC already has visibility of it. Since January 2024, UK digital platforms are required to report what they've paid their users to HMRC annually, under international reporting rules that apply across the platform economy.
| Expense | Typically allowable? | Note |
|---|---|---|
| Home office proportion (heating, electricity) | Yes | Flat rate or calculated proportion |
| Software subscriptions (project management, design tools) | Yes | Tools used for client work |
| Subcontracted VAs, copywriters, designers | Yes | Genuine subcontractors, not your employees |
| Courses and training relevant to your services | Yes | Must relate to your existing VA business |
| Laptop, monitor, office equipment | Yes | Business proportion if also used personally |
| Platform commission (Upwork, Fiverr fees) | Yes | Deduct the fee, declare the gross amount as income |
All four income streams combine into Priya's single self-employment total. £31,360 is under the current £50,000 threshold but above the £30,000 threshold arriving April 2027, so she'll need to prepare based on this year's figures.
Software links are affiliate, help fund CheckMyMTD. Recommendations based on ease of use for self-employed income tracking.
Yes. If you're self-employed, all your VA income, whether from monthly retainers, hourly billing, or one-off projects, is normally the same self-employment business, so it's added together as one gross income figure against the MTD threshold.
Yes. Since January 2024, UK digital platforms including Upwork and Fiverr must report what they've paid you to HMRC annually under OECD reporting rules. This doesn't change what tax you owe, but HMRC already has the figures, so your own records need to match.
Yes. You can claim a proportion of household costs like heating and electricity for the room you work from, either using HMRC's simplified flat rates or by calculating an actual proportion based on room use and hours worked.
Yes. Payments to subcontractors, such as a copywriter, designer, or junior VA helping deliver work under your client contracts, are normally allowable business expenses, provided they're genuinely self-employed subcontractors rather than your employees.
Not to your company's trading income, which is taxed through Corporation Tax instead. MTD for Income Tax only applies to individuals with self-employment or property income in their own name, so it would only be relevant if you also have separate personal income outside the company.