Tax calculators · Sole traders and landlords
Making Tax Digital for Income Tax applies to sole traders and landlords whose turnover and rent together go over £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028. Enter your figures to see when it applies to you.
What MTD means in practice
HMRC uses your tax return for the year that ended twelve months before your start date. For April 2027, that's your 2025/26 return. Some people are exempt, including those who can't use digital tools for reasons such as age, disability or location.
MTD doesn't have to mean more admin for you. We set clients up on Xero and send the quarterly updates for them.
Book a free 30-minute callThese calculators give estimates based on the figures you enter and the 2026/27 rates shown for England, Wales and Northern Ireland. They are not personal tax advice. Please speak to us before acting on the results.
Making Tax Digital for Income Tax is being brought in over three years. Whether you're in depends on your qualifying income, which is your self-employed turnover plus the rent you receive, before expenses. HMRC looks at the tax return for the year that ended twelve months before each start date.
| Over £50,000 in 2024/25 | From 6 April 2026 |
| Over £30,000 in 2025/26 | From 6 April 2027 |
| Over £20,000 in 2026/27 | From 6 April 2028 |
Example: a plumber with £18,000 of turnover who also lets a flat for £15,000 a year has qualifying income of £33,000. Neither on its own would bring them in, but together they're over £30,000, so MTD applies from April 2027.
You'll keep your records in software that works with HMRC, send a short summary every quarter and finalise the year by 31 January. The quarterly updates aren't tax returns, and you don't pay tax every quarter.
Most of our clients use Xero. We set it up, connect the bank feed and send the quarterly updates for them, so the day-to-day hardly changes. See our bookkeeping and Making Tax Digital service for how it works.
Your self-employed turnover plus the rent you receive, both before expenses. Employment income, dividends, pensions, savings and partnership income don't count. If you own property jointly, only your share counts.
No. MTD for Income Tax is for individuals who are self-employed or let property. Limited companies aren't in it, although a company registered for VAT already uses MTD for its VAT returns.
No. The quarterly updates are short summaries of your income and expenses. Your tax is still worked out for the whole year, and payment dates stay the same.
Software recognised by HMRC that can send the quarterly updates, such as Xero. If you use a spreadsheet, you'll need bridging software to send the figures. We set clients up on Xero and handle the submissions.
Some people can, for example if age, disability, location or religious beliefs make using digital tools impractical. You have to apply to HMRC for an exemption, and it isn't automatic.
The most tax-efficient way to pay yourself from your limited company.
Try it →ContractorsCompare your take-home through your own company and through an umbrella.
Try it →Higher earnersWhat crossing £100,000 really costs, and how a pension can win it back.
Try it →Related: Bookkeeping and Making Tax Digital · Self assessment · Accountants for landlords in Harrow
Book your free 30-minute consultation. We'll get your records into Xero and handle the quarterly updates, so MTD is one less thing to think about.
Tap what you need and we will point you the right way.