Making Tax Digital (MTD) Calculator and Compliance Guide UK 2026

CheckMyMTD

Check If Making Tax Digital Applies to You

Free, personalised MTD calculator — get your exact qualifying income, deadlines and next steps in under 60 seconds, based on current HMRC guidance.

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HMRC Guidance
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Your qualifying income

Combine all self-employment and rental income, gross, before expenses. exactly as HMRC calculates your threshold.

Self-employment income Gross before expenses

Sole trader, freelancer, consultant, CIS contractor. use gross income before deductions at source

UK rental income Gross rents received

UK property rental before expenses. Joint property: enter your share only

Gig / platform income 2nd business or side hustle

Uber, Deliveroo, Etsy, eBay, Airbnb (above Rent a Room £7,500). use gross before platform fees

Partnership share Shown for awareness, currently MTD-excluded

Partnerships have no confirmed MTD mandation date. entered for awareness only, does not count towards your threshold

Total Qualifying Income

£0

Enter income above

Foreign / overseas income Excluded, for awareness

Overseas property rental, foreign business. currently excluded from MTD qualifying income. Enter for awareness only.

Income pattern Affects your score

Seasonal or volatile income affects preparation urgency and software needs

ℹ️ Never counts: PAYE salary · pension income · dividends · savings interest · capital gains · overseas rental income (currently). HMRC eligibility guidance ↗

A bit about your situation

This personalises your software recommendation, penalty assessment and action plan. Takes 30 seconds.

Your MTD status right now

Technology comfort level

Monthly software budget

Expected income next year Estimate is fine

I use an accountant or bookkeeperAffects software pick

I invoice clients regularlyInvoicing features matter

I work mainly on mobileApp quality is priority

I am VAT registeredAlready use MTD for VAT

I have joint property with a partnerYou each file separately

Disability prevents digital useExemption ground: permanent

Age-related digital exclusionExemption ground: assessed individually

No reliable internet in my areaExemption ground: remote location

Religious objection to digital recordsExemption ground: evidenced belief

Save & share your results

Send to your accountant, download a PDF report, or copy a shareable summary.

Your quarterly submission calendar

Every MTD deadline for your first full year. add to any calendar in one click.

Important: Quarterly updates are summaries of income and expenses. not tax returns, and not payment requests. YourFinal Declaration (replacing Self Assessment) is due 31 January 2028 for the 2026–27 tax year. The End of Period Statement (EOPS) has been removed. there is now just one year-end submission.HMRC guide ↗

All HMRC-approved options

Ranked for your profile. Prices correct July 2026. verify before purchasing. Software links are affiliate.

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Who must comply, and when

MTD for Income Tax Self Assessment rolls out in three confirmed phases. Your obligation is assessed on the previous tax year's qualifying income figures.

Apr 2026

Income over £50,000

Phase 1 has been live since April 2026. First quarterly update due 7 August 2026. Soft landing: no penalty points for quarterly submissions in 2026–27. Payment interest still applies from day one.

Apr 2027

Income over £30,000

Phase 2. Sole traders and landlords with £30k–£50k qualifying income join. No soft landing confirmed for this cohort. Full penalty points from the start.

Apr 2028

Income over £20,000

Phase 3 confirmed in Spring Statement 26 March 2025. Brings approximately 900,000 further taxpayers into MTD scope.

Taxpayer type

April 2026 ✓

April 2027

April 2028

Notes

Sole trader (£50k+ income)

LIVE

Yes

Based on 2024–25 Self Assessment income

Landlord (£50k+ rental)

LIVE

Yes

UK property rental income only

Sole trader (£30k–£50k)

Not yet

MANDATORY

Yes

Monitor 2025–26 income carefully

CIS contractor

If £50k+ gross

If £30k+ gross

If £20k+

Gross CIS income before deductions counts

Gig worker (Uber/Etsy/Airbnb)

If £50k+ gross

If £30k+

If £20k+

Platform gross earnings used

FHL (post-April 2025)

If £50k+

If £30k+

If £20k+

FHLs now treated as ordinary property

Power of Attorney / Court of Protection

Permanently exempt

Exempt

Confirmed Nov 2025 Budget

PAYE employee only

Exempt

Employment income never qualifies

Pension / investments only

Exempt

Pension and dividend income excluded

MTD for Corporation Tax

Cancelled

N/A

HMRC confirmed will not be introduced

We built what we needed ourselves

When MTD was announced, most guidance was written for accountants. dense, jargon-heavy, and useless for the 4.2 million sole traders who just needed to know what to do and when.

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Nothing transmitted to any server. Ever.

Updated

HMRC changes reflected here promptly. Last updated July 2026.

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Phase

From

Qualifying income

Status

Phase 1

6 April 2026 (live)

Over £50,000

Live since Apr 2026

Phase 2

6 April 2027

Over £30,000

Coming soon

Phase 3

6 April 2028

Over £20,000

Confirmed

Real questions. Direct answers.

The questions sole traders and landlords actually ask. answered plainly, with links to official HMRC sources so you can verify every word.

Only two types of income count towards your Making Tax Digital qualifying income, both measuredgross, before expenses:

Self-employment income. sole trader profits, freelance work, consultancy, CIS sub-contracting (gross before deductions at source), gig economy platforms (Uber, Deliveroo, Etsy, eBay, Airbnb above the Rent a Room £7,500 allowance)
UK property rental income. gross rents from residential or commercial property. Joint owners: enter your share only. Furnished Holiday Lets (post-April 2025): treated as ordinary property, counts in full.

These are explicitly excluded and never count: PAYE salary • pension income (state, private, SIPP, annuity) • dividends • savings interest • capital gains • overseas/foreign rental income • trust income. It does not matter how large these amounts are. they have zero effect on your MTD ITSA threshold.

HMRC assesses your threshold against the previous tax year's figures. If your 2024–25 self-employment and rental income combined exceeded £50,000, you are mandatory from 6 April 2026. Use our free MTD calculator above to check your exact position in 60 seconds.

Official HMRC eligibility guidance ↗ • MTD guide for sole traders → • MTD guide for landlords →

MTD for Income Tax became mandatory on 6 April 2026 for sole traders and landlords with income over £50,000. but you have not necessarily missed anything critical yet. Here is what matters:

Registration deadline: HMRC has not set a hard cut-off for registration, but you must be registered and have approved MTD software running before your first submission.
First submission deadline: 7 August 2026. this is the due date for Q1 (covering 6 April to 5 July 2026). This is the date that matters most right now.
Soft landing 2026–27: No penalty points will be issued for late quarterly updates in the first year (Phase 1 taxpayers only). However, late payment interest applies from day one. the soft landing does not mean a free pass on payment.
Final Declaration is NOT covered by the soft landing. miss that and you get a penalty point.

If you have not started: register for MTD ITSA via your HMRC online account today, then choose and set up HMRC-approved MTD software. our calculator recommends the best option for your profile. The whole process takes 1–3 working days.

HMRC: sign up for MTD ITSA ↗ • Full 7 August 2026 deadline guide →

Good news: HMRC removed the End of Period Statement (EOPS) entirely from the MTD for Income Tax process. If you heard about EOPS in earlier guidance, it no longer exists.

The current MTD ITSA year-end process is now much simpler:

4 quarterly updates during the tax year (income and expense summaries, not tax returns)
1 Final Declaration at year end (due 31 January, replacing Self Assessment). this is where you confirm your total income, claim reliefs, and finalise your tax position

The Final Declaration for the 2026–27 tax year is due 31 January 2028. No separate EOPS, no separate SA return, no duplicated submissions. Your MTD software handles all of this automatically.

HMRC: using MTD for Income Tax ↗ • MTD soft landing explained →

The MTD quarterly update deadlines for the 2026–27 tax year are fixed. Miss any of these and, after the soft landing ends, you accumulate penalty points:

Quarter	Period covered	Deadline
Q1	6 April – 5 July 2026	7 August 2026
Q2	6 July – 5 October 2026	7 November 2026
Q3	6 October 2026 – 5 January 2027	7 February 2027
Q4	6 January – 5 April 2027	7 May 2027
Final Declaration	Full year 2026–27	31 January 2028

Quarterly updates are summaries of income and expenses. not tax returns, not payment requests. You have exactly one month and two days after each quarter end to submit.

Full guide: 7 August 2026 deadline → • Download your personal ICS calendar →

MTD ITSA uses a points-based late submission penalty system. Here is exactly how it works:

1 penalty point for each missed quarterly submission deadline
£200 fine when you reach 4 points (the threshold for quarterly filers)
£200 for every further missed submission after reaching the threshold
Points expire after 24 consecutive months of full compliance

Soft landing 2026–27 (Phase 1 only): No penalty points for late quarterly updates in the first year. This does NOT cover the Final Declaration. miss that and you immediately receive a point. It also does NOT cover late payment.

Late payment penalties (no soft landing): 0% for first 15 days • 3% from day 16 • further 3% from day 31 • 10% per annum daily interest from day 31 onwards.

Phase 2 taxpayers joining April 2027 have no confirmed soft landing. full penalties from day one.

HMRC penalties guidance ↗ • Full MTD penalties guide → • Soft landing 2026–27 →

Yes. several exemption and deferral categories exist. Here is the complete confirmed list:

Permanent exemptions (no MTD obligation, ever):

Power of Attorney. Confirmed November 2025 Budget
Court of Protection deputyship. Confirmed November 2025 Budget
No UK National Insurance number

Applied exemptions (apply to HMRC with evidence before your mandatory date):

Disability or health condition preventing digital use
Age-related inability to use digital tools (assessed individually)
No reliable internet access due to remote location
Religious objection to electronic record-keeping (must be evidenced)
Temporary undue hardship

One-year deferrals to April 2027 (automatic. No application needed):

Trust and estate income recipients
Users of averaging adjustment (farmers, creative artists)
Qualifying care relief recipients (foster carers, shared lives)
Non-UK resident foreign entertainers

HMRC: apply for MTD exemption ↗ • Check your exemption grounds →

No. pension income is completely excluded from the MTD for Income Tax qualifying income calculation. This applies to all pension types without exception:

State Pension (new state pension and basic state pension)
Private and workplace pensions (defined benefit, defined contribution)
Self-invested personal pensions (SIPPs)
Annuities and drawdown income

It does not matter how large your pension income is. even £200,000 per year in pension creates zero MTD ITSA obligation on its own. The same applies to PAYE, dividends, savings interest and capital gains.

The only way pension income can indirectly trigger MTD: if you also have self-employment or UK rental income above the threshold. For example: a retired person receiving £30,000 pension who also earns £55,000 in gross rents is above the April 2026 threshold. the rental income alone triggers it, not the pension.

HMRC MTD eligibility guidance ↗ • MTD for landlords → • Check your position free →

Yes. each co-owner is assessed individually on their own share. Joint property thresholds are never pooled:

50/50 couple with £110,000 total gross rental: each has £55,000. both above April 2026 threshold, both must register separately
50/50 couple with £80,000 total gross rental: each has £40,000. both join MTD in April 2027 (Phase 2)
90/10 split on £80,000: one partner has £72,000 (Phase 1), the other has £8,000 (below all current thresholds)

Married couples and civil partners split rental income 50/50 by default. If you hold unequal beneficial interests, declare this via HMRC Form 17. Unmarried co-owners split in any proportion matching actual beneficial interest.

Each partner above the threshold must register individually, use their own MTD software account, submit four quarterly updates per year, and file their own Final Declaration.

Full MTD landlord guide → • Check your individual obligation →

Yes. all gig economy and platform income counts as self-employment income for MTD purposes. The threshold uses gross platform earnings before commission, not what reaches your bank account:

Uber / Bolt driver: £55,000 gross trips processed = £55,000 qualifying income, even after 25% commission reduces your payout to £41,250. Vehicle costs, fuel, insurance reduce your taxable profit, not your MTD threshold.
Deliveroo / Just Eat rider: Same rule. Gross earnings before platform fee count in full.
Etsy / eBay seller: Gross sales revenue counts. Platform fees and materials reduce profit, not threshold.
Airbnb host: Gross rental income counts. The £7,500 Rent a Room allowance does not reduce your qualifying income for threshold purposes.

HMRC already knows your figures. Since January 2024, all UK digital platforms must legally report seller earnings to HMRC under DAC7 rules. If you are above the threshold and not yet registered, HMRC has been notified.

MTD for Uber and gig workers → • MTD for Etsy and eBay sellers → • Check your obligation →

No. MTD for Corporation Tax will not be introduced. HMRC confirmed this in late 2025. Limited companies are completely unaffected by MTD ITSA.

Your limited company: Pays Corporation Tax, files annual CT600. No MTD obligation, cancelled.
You as a director drawing salary only: PAYE income is excluded. No personal MTD obligation on that income.
If you also earn rental income or have a sole trade: Your personal rental and self-employment income above the threshold is still subject to MTD ITSA, regardless of also running a company.
Dividends from your company: Dividend income is excluded from MTD qualifying income entirely.

Example: director drawing £50,000 salary + £10,000 dividends = zero personal MTD obligation. Director drawing £30,000 salary + personally owns a rental property earning £60,000 gross = in scope for April 2026.

MTD for sole traders → • Check your personal obligation free →

MTD for Income Tax rolls out in three confirmed phases:

Phase	Date	Threshold	Taxpayers
Phase 1	6 April 2026	Over £50,000	~700,000. LIVE NOW
Phase 2	6 April 2027	Over £30,000	~500,000 additional
Phase 3	6 April 2028	Over £20,000	~900,000 additional

Your phase is based on your qualifying income in the previous tax year. If your 2025–26 income is between £30,000 and £50,000, you become mandatory in April 2027. not April 2026. The £20,000 threshold was confirmed in the Spring Statement on 26 March 2025.

MTD phases: full guide → • Full threshold table → • Check which phase applies to you →

Yes. HMRC-approved software is mandatory. You cannot submit quarterly updates directly through HMRC's website. The software connects to HMRC's API and submits on your behalf.

QuickBooks. best mobile app, strongest MTD ITSA integration, from £14/month. Best for most sole traders.
FreeAgent. purpose-built for UK self-employed, excellent invoicing, from £19/month. Very beginner-friendly.
Xero. accountants' favourite, largest ecosystem, from £16/month. Best if your accountant uses it.
Sage Accounting. best for CIS contractors and VAT-registered businesses, from £15/month.
Zoho Books. Free tier available. Full MTD ITSA support. Best value option.

Our free MTD calculator recommends the best option specifically for your profile. factoring in your income type, accountant use, technology comfort, and budget.

HMRC: full approved software list ↗ • Get your personalised recommendation →

The MTD soft landing is a one-year grace period in 2026–27 where HMRC will not issue penalty points for late quarterly updates. Phase 1 taxpayers only.

What it covers:

No penalty points for late quarterly updates Q1–Q4 in 2026–27
No £200 fine for reaching the 4-point threshold during this period

What it does NOT cover:

Late payment interest. starts from day one regardless
The Final Declaration. miss 31 January 2028 and you receive a penalty point
Phase 2 taxpayers. No confirmed soft landing for those joining April 2027

The soft landing is not an excuse to delay. You still need to register with HMRC and have approved software running before 7 August 2026.

Full MTD soft landing guide → • MTD penalties explained → • Check your penalty exposure →

Check If Making Tax Digital Applies to You

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Who must comply, and when

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