What income counts towards the MTD threshold?

Only self-employment income and UK property rental income count — both gross, before expenses. PAYE, pensions, dividends and savings do not count. CIS contractors use gross income before deductions at source.

When is the first MTD quarterly submission deadline?

The first quarterly update (Q1: 6 April to 5 July 2026) is due by 7 August 2026 for taxpayers in Phase 1 (income over £50,000). Subsequent deadlines: Q2 by 7 November, Q3 by 7 February, Q4 by 7 May.

What are the MTD penalties?

Points-based: 1 point per missed quarterly submission, £200 fine at 4 points, £200 per further miss. Soft landing 2026-27: no penalty points for quarterly updates in the first year (Phase 1 only). Late payment: 0% first 15 days, 3% from day 16, further 3% from day 31, plus 10% per annum daily interest.

Can I get an MTD exemption?

Yes. Permanent exemptions include Power of Attorney and Court of Protection deputyship. Applied exemptions include digital exclusion (disability, age, remote location), religious objection, and temporary hardship. One-year deferrals apply to trust income recipients, averaging adjustment users and qualifying care providers.

Does pension income count towards the MTD threshold?

No. State pension, private pensions and annuities are completely excluded from the MTD qualifying income calculation.

What is the April 2028 MTD threshold?

£20,000 qualifying income — confirmed in the Spring Statement on 26 March 2025. This is Phase 3 of MTD ITSA and brings approximately 900,000 more taxpayers into scope.

Do Uber and Deliveroo earnings count for MTD?

Yes. Gig economy income counts as self-employment income using gross earnings before the platform commission. A driver earning £55,000 gross from Uber has £55,000 qualifying income even after deducting vehicle costs.

Do couples with joint property each need MTD?

Yes — each person is assessed individually on their own share. Thresholds are not pooled. Each partner registers and files separately under MTD.

MTD Calculator 2026 — Free Making Tax Digital Checker UK

Q: What happened to the End of Period Statement?

HMRC removed the End of Period Statement (EOPS) from the MTD process. There is now just one year-end submission: the Final Declaration, due by 31 January following the tax year end.

Q: Is MTD for Corporation Tax happening?

No. HMRC confirmed in late 2025 that MTD for Corporation Tax will not be introduced. Limited companies are unaffected.

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If you earn over £50,000 from self-employment or property, you are legally required to comply with MTD right now. Your first submission deadline is 7 August 2026. Find out exactly where you stand — free, in 60 seconds.

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Calculating your deadline...

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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 Your allocation only

🤝 Your personal allocated share of business partnership profits

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 ↗

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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

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Save & share your results

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

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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. Your Final 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 ↗

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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 is live now. 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.

Date TBC

Partnerships

General partnerships and LLPs are not in any confirmed wave. A separate announcement is expected. Monitor GOV.UK ↗.

Taxpayer type	April 2026	April 2027	April 2028	Notes
Sole trader (£50k+ income)	MANDATORY NOW	Yes	Yes	Based on 2024–25 Self Assessment income
Landlord (£50k+ rental)	MANDATORY NOW	Yes	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
Partnership	TBC	TBC	TBC	No confirmed date — watch GOV.UK
Power of Attorney / Court of Protection	Permanently exempt	Exempt	Exempt	Confirmed Nov 2025 Budget
PAYE employee only	Exempt	Exempt	Exempt	Employment income never qualifies
Pension / investments only	Exempt	Exempt	Exempt	Pension and dividend income excluded
MTD for Corporation Tax	Cancelled	N/A	N/A	HMRC confirmed will not be introduced

Taxpayer type

April 2026

April 2027

April 2028

Notes

Sole trader (£50k+ income)

MANDATORY NOW

Yes

Based on 2024–25 Self Assessment income

Landlord (£50k+ rental)

MANDATORY NOW

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

Partnership

TBC

No confirmed date — watch GOV.UK

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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Every threshold, deadline and rule on this site is sourced directly from GOV.UK. We cite our sources so you can verify everything independently.

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Updated within 24 hours of HMRC changes

We monitor HMRC announcements continuously. New exemptions, threshold updates, rule changes — all reflected here promptly. Last updated May 2026.

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We are not HMRC. We are not a government body. We are not owned by any software company. We are an independent guidance site with one job: help you understand your obligations.

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.

Self-employment income and UK property rental income — both gross, before expenses. That is it. PAYE salary, pension income (state and private), dividends, savings interest and capital gains do not count. If you are a CIS contractor, use your gross sub-contracting income before any deductions at source. HMRC eligibility checker ↗

Not necessarily. MTD came into force on 6 April 2026 but HMRC has not set a hard registration deadline. Your first actual submission deadline is 7 August 2026 (Q1: April–June). You need to register with HMRC and have approved software set up before that date. There is a soft landing in 2026–27 — no penalty points for late quarterly submissions this year, though late payment interest still applies from day one. HMRC: sign up for MTD ↗

HMRC removed the End of Period Statement (EOPS) entirely from the MTD process. There is now just one year-end submission: the Final Declaration, due by 31 January following the end of the tax year. For the 2026–27 tax year, your Final Declaration is due 31 January 2028. This significantly simplifies the year-end process compared to earlier MTD proposals.

Q1 (6 April–5 July): due 7 August. Q2 (6 July–5 October): due 7 November. Q3 (6 October–5 January): due 7 February. Q4 (6 January–5 April): due 7 May. Final Declaration: 31 January following year end. Your MTD software submits these — you review and confirm.

Points-based for late quarterly submissions: 1 point per miss, £200 fine at 4 points, £200 per further miss. Soft landing 2026–27: no penalty points for late quarterly updates in Year 1 — Phase 1 taxpayers only. The Final Declaration is not covered by the soft landing. Late payment penalties: 0% for 15 days, 3% from day 16, further 3% from day 31, plus 10% per annum daily interest from day 31. HMRC penalties guidance ↗

Yes. Permanent exemptions: Power of Attorney, Court of Protection deputyship, no UK National Insurance number. Applied exemptions: digital exclusion (disability, advanced age, remote location, religious objection), temporary hardship. One-year deferrals to April 2027: trust and estate income recipients, averaging adjustment users, qualifying care relief recipients, non-UK resident foreign entertainers. Apply through HMRC before your mandatory start date. HMRC: apply for exemption ↗

No — not at all. State pension, private pensions, annuities and drawdown income are completely excluded from the MTD qualifying income calculation. If your only income is pension plus PAYE employment, you have no MTD obligation regardless of the total amount.

Yes — but each person is assessed individually on their own share. A 50/50 couple with £100,000 total rental income each has £50,000 qualifying income — both are above the April 2026 threshold. Thresholds are not pooled. Each partner registers and files separately. Married couples can change the income split via HMRC Form 17 if they have unequal beneficial interests.

Yes. Gig economy income counts as self-employment income using gross earnings before platform commission and before your business expenses. A driver earning £55,000 gross from Uber still has £55,000 qualifying income even if vehicle costs reduce profit to £30,000. Since January 2024, platforms must legally report your earnings to HMRC — they already know your figures.

No. HMRC confirmed in late 2025 that MTD for Corporation Tax will not be introduced. If you operate through a limited company, your company's tax obligations are unaffected by MTD ITSA. If you personally receive rental or self-employment income above the threshold alongside your company director's salary, your personal MTD ITSA obligation still applies to that personal income.

Making Tax Digital
is already here.
Are you ready?

Who must comply, and when

We built what we needed ourselves

Real questions. Direct answers.

Making Tax Digitalis already here.Are you ready?

Who must comply, and when

We built what we needed ourselves

Real questions. Direct answers.

Making Tax Digital
is already here.
Are you ready?