Making Tax Digital Readiness Calculator Trending

Check if MTD for Income Tax applies to you. See deadlines, requirements and software costs.

Last updated: April 2026 · Source: GOV.UK — Making Tax Digital for Income Tax

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MTD for Income Tax applies from April 2026

Income £55,000.00 exceeds £50,000 threshold

What MTD means for you:

• Keep digital records using HMRC-compatible software (~£150.00/year)

• Submit 4 quarterly updates + 1 end-of-year declaration

• Replaces annual self-assessment tax return

• Deadline: April 2026 (over £50K) or April 2027 (over £30K)

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) launches in April 2026 for self-employed individuals and landlords with gross income above £50,000. It requires quarterly digital submissions of income and expense summaries to HMRC using compatible software, plus a final end-of-period statement.

Under MTD, you submit updates for four quarterly periods: April to July, August to October, November to January and February to March. Each update summarises your business income and allowable expenses for that period. A final declaration replaces the current Self Assessment tax return and is due by 31 January following the tax year.

This calculator estimates your quarterly submission amounts based on your projected annual income and expenses. It helps you understand what each quarterly update will look like and plan your cash flow for tax payments. Those with income between £30,000 and £50,000 join from April 2027.

Example: Self-employed, £72,000 annual income, £18,000 expenses

  1. Quarterly income (average): £72,000 ÷ 4 = £18,000
  2. Quarterly expenses (average): £18,000 ÷ 4 = £4,500
  3. Quarterly profit submitted to HMRC: £13,500
  4. Annual profit: £54,000
  5. Estimated tax + NI due: approx. £12,800

Source: GOV.UK — Making Tax Digital for Income Tax

Frequently Asked Questions

What does the Making Tax Digital Readiness Calculator do?
Check if MTD for Income Tax applies to you. See deadlines, requirements and software costs. All calculations are performed in your browser using official UK rates and thresholds.
Is this calculator updated for the 2025/26 tax year?
Yes. This calculator uses the latest HMRC rates and thresholds for the 2025/26 UK tax year, which runs from 6 April 2025 to 5 April 2026. Rates are verified against official HMRC publications.
Do I need to tell HMRC about this?
Whether you need to report to HMRC depends on your individual circumstances. If you are unsure, check GOV.UK or contact HMRC directly. This calculator provides estimates for guidance only.