MTD Readiness Checklist Trending

Score your Making Tax Digital readiness across 10 key criteria. See what you still need to do.

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

MTD Readiness Score

0/10

Needs work — start with the basics

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 ITSA) requires self-employed individuals and landlords with qualifying income above £50,000 to maintain digital records and submit quarterly updates to HMRC using MTD-compatible software from April 2026. Those with income between £30,000 and £50,000 will follow from April 2027. Quarterly updates must be submitted within one month of each quarter end, with a final End of Period Statement and Final Declaration replacing the traditional Self Assessment return.

Readiness is assessed across multiple criteria: whether you currently use MTD-compatible accounting software (spreadsheets linked via bridging software also qualify), whether your income and expense records are kept digitally from the point of transaction, whether you can generate and submit quarterly summaries to HMRC through the API, and whether your record-keeping already categorises income and expenses to the level HMRC requires.

Additional readiness factors include whether your tax agent is prepared for MTD, whether you have tested the submission process using HMRC's sandbox environment, and whether your business processes can meet the quarterly filing deadlines (5 July, 5 October, 5 January, 5 April with one-month submission windows). Penalties under the new points-based regime accumulate for late submissions: each late filing adds a point, and at the threshold (4 points for quarterly obligations), a £200 penalty is triggered for that and every subsequent late submission.

Readiness assessment for a freelance developer earning £65,000

  1. Income exceeds £50,000 threshold: MTD ITSA mandatory from April 2026.
  2. Currently uses spreadsheets: needs MTD-compatible software or HMRC-approved bridging tool. Score: 4/10.
  3. Records are digital but not categorised per MTD requirements: partial compliance. Score: 6/10.
  4. No quarterly submission testing done with HMRC sandbox: Score: 2/10.
  5. Overall readiness: 40%. Actions needed: purchase compatible software, set up quarterly filing workflow, and test API submissions before April 2026 deadline.

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

Frequently Asked Questions

What does the MTD Readiness Checklist do?
Score your Making Tax Digital readiness across 10 key criteria. See what you still need to do. All calculations are performed in your browser using official UK rates and thresholds.
Is this suitable for my business?
This calculator provides general estimates based on standard UK business rates and rules. Every business is different — consult your accountant for advice specific to your circumstances.
Does this use 2025/26 tax rates?
Yes. All rates and thresholds are based on the current 2025/26 UK tax year. Corporation Tax main rate is 25% for profits over £250,000, with a 19% small profits rate.