Making Tax Digital Calculator UK – 2026, 2027 and 2028
Making Tax Digital Calculator UK for sole traders and landlords. Add your gross self-employment and property income for three tax years to see which MTD start date your figures point to, which quarterly deadlines follow, and whether an exemption could change the answer.
Sole traders and landlords whose gross self-employment and property income is more than £50,000 in 2024–25, more than £30,000 in 2025–26 or more than £20,000 in 2026–27. Those three groups start on 6 April 2026, 6 April 2027 and 6 April 2028. The test uses income before expenses, so a business that takes £32,000 and makes £12,000 profit still counts as £32,000.
Wages, dividends, pensions and a partner’s share of partnership profit are not counted. HMRC looks at your Self Assessment return, but checking your own figures is still your responsibility.
Making Tax Digital Calculator UK
Enter gross income for each tax year, answer two short questions and get your possible start date, key dates and notes.
What this means for you
Your figures against each line
| Tax year | Self-employment | Property | Total | Line to beat | Position |
|---|---|---|---|---|---|
| 2024–25 | £22,000 | £4,000 | £26,000 | More than £50,000 | £24,000 under |
| 2025–26 | £26,000 | £5,500 | £31,500 | More than £30,000 | £1,500 over |
| 2026–27 | £26,000 | £5,500 | £31,500 | More than £20,000 | £11,500 over |
Dates to plan for
| Date | What is due | Tax year | Period covered |
|---|---|---|---|
| 7 August 2027 | Quarterly update 1 of 4 | 2027–28 | 6 Apr to 5 Jul (calendar: 1 Apr to 30 Jun) |
| 7 November 2027 | Quarterly update 2 of 4 | 2027–28 | 6 Apr to 5 Oct (calendar: 1 Apr to 30 Sep) |
| 7 February 2028 | Quarterly update 3 of 4 | 2027–28 | 6 Apr to 5 Jan (calendar: 1 Apr to 31 Dec) |
| 7 May 2028 | Quarterly update 4 of 4 | 2027–28 | 6 Apr to 5 Apr (calendar: 1 Apr to 31 Mar) |
| 7 August 2028 | Quarterly update 1 of 4 | 2028–29 | 6 Apr to 5 Jul (calendar: 1 Apr to 30 Jun) |
| 7 November 2028 | Quarterly update 2 of 4 | 2028–29 | 6 Apr to 5 Oct (calendar: 1 Apr to 30 Sep) |
Dates follow HMRC’s standard update deadlines and your estimated start year. The period each update covers depends on whether you use standard or calendar periods. Confirm everything inside your own software or with HMRC.
MTD software and support cost planner
Type in real quotes for two set-ups and compare what each costs over one to three years.
You do not have to buy the most expensive accounting app. HMRC recognises software that keeps digital records and sends updates, and bridging software that links an existing spreadsheet to HMRC. Software and accountant fees can often be claimed as a business expense when they relate to the business, so ask an adviser how that works for you.
Plan A
For example, your spreadsheet plus a bridging tool.
Plan B
For example, an all-in-one app, or an accountant-led route.
Cost comparison
Before you buy, check that the product is on HMRC’s current software list and covers every income source, update period and tax return you need. The list is linked in Official sources below.
Making Tax Digital Calculator UK: thresholds and start dates, 2026 to 2028
The rollout comes in three steps. HMRC looks at your qualifying income in an earlier tax year to decide when you start, and each step lowers the line.
| Income tax year checked | Line to beat | MTD start date | Position on 10 October 2026 |
|---|---|---|---|
| 2024–25 | More than £50,000 | 6 April 2026 | In force. First update was due 7 August 2026; the next is due 7 November 2026. |
| 2025–26 | More than £30,000 | 6 April 2027 | About six months away. HMRC estimates around 1,077,000 more people join. |
| 2026–27 | More than £20,000 | 6 April 2028 | The year is still running, so treat your figure as an estimate. |
More than means more than. A total of exactly £50,000, £30,000 or £20,000 is not over the line. Your full position can still depend on Self Assessment registration, ended income sources, exemptions and the return HMRC holds for you.
What counts as qualifying income
Add the gross income, before expenses, from every sole trader self-employment source and every property source for the tax year. HMRC calls this turnover.
- Counts: self-employment turnover, UK and foreign property income if you are a UK tax resident, and your share of jointly owned property income.
- Does not count: PAYE pay, dividends, State Pension, private pensions, and your share of profit as an individual partner in a partnership.
- Cash basis and VAT: if you are VAT registered and use the cash basis, you can choose to include or leave out VAT. If you include it, it counts.
- Part-year income: HMRC scales up a sole trader’s figure to a full year if it has the data. For property income you work out the full-year figure yourself.
- Joint property: if you only get told your share after expenses, HMRC uses that figure.
Partnership profit is the one that catches people out. It does not count towards the line, and you do not send quarterly updates for it, but it still goes on your tax return. If you also have separate sole trader or property income, that income can bring you in.
Worked examples
These are our own illustrations, using the rules above.
| Situation | What counts | Result |
|---|---|---|
| Electrician with a rental flat | £26,000 turnover plus £5,500 rent gives £31,500 | Over £30,000 in 2025–26, so 6 April 2027 |
| Joint landlord, £48,000 rent shared equally | Your share is £24,000 | Under £30,000, over £20,000, so 6 April 2028 if 2026–27 looks the same |
| Taxi driver, £32,000 fares and £20,000 costs | Profit is £12,000 but turnover is £32,000 | Over £30,000, so 6 April 2027 |
| Employee, £45,000 salary and £6,000 freelance work | Only the £6,000 counts | Under every line |
Who is exempt from Making Tax Digital
An exempt person does not use MTD but still files a normal Self Assessment return. Some exemptions are automatic. Others need an application, and you should not assume an application has been accepted until HMRC confirms it. Whether you qualify depends on your own circumstances and HMRC’s exact conditions, not just the group you recognise yourself in.
| Group | How it works | What to do |
|---|---|---|
| Qualifying income of £20,000 or less in the income year HMRC checks | Applies while your circumstances stay the same | Automatic |
| No National Insurance number before the tax year starts | Permanent while your circumstances stay the same | Automatic |
| Personal representatives, trusts filing an SA900, non-resident companies filing an SA700 | Permanent while your circumstances stay the same | Automatic. Any personal self-employment or property income can still bring you in. |
| Lloyd’s underwriting business (SA103L) | Permanent while your circumstances stay the same | Automatic if it was in your 2024–25 return |
| Not physically or mentally capable of giving information to HMRC | Permanent while your circumstances stay the same. A power of attorney or legally appointed deputy, controller or guardian must also be in place. Having a representative alone is not enough. | Automatic if you stated this in your 2024–25 return |
| Averaging relief (SA103), qualifying care relief, trust income (SA107) or an SA109 page | Temporary, to April 2027 at the earliest. You still start from 2027–28 if 2025–26 income is over £30,000. | Automatic if it was in your 2024–25 return. Apply if you expect it in 2025–26 or 2026–27. Partners who claimed or expect to claim averaging relief on the SA104 page must apply. |
| Minister of religion, Lloyd’s member with self-employment or property income, Married Couple’s Allowance (born before 6 April 1935) or Blind Person’s Allowance | Lasts beyond April 2027. HMRC will set a later timeline. | Automatic if it was in your 2024–25 return. Apply if you expect it later. |
| Digitally excluded | Case by case. Examples include a disability or health condition that stops you using a device, or no internet access at home or work. | Apply to HMRC. Preferring paper, or the cost of software, is not enough. |
| Partnerships | Not in MTD yet. HMRC will announce a timeline. | Nothing to do for the partnership return |
A lower figure in a later year does not cancel a start date an earlier year has already set. For example, if your 2025–26 income is over £30,000 you start on 6 April 2027, even if your 2026–27 income is £20,000 or less. Once you are in MTD, HMRC lets you opt out only after three tax years below the line. Longer-term exemptions can also change when you join MTD later, so they do not always mean exempt forever.
MTD quarterly update deadlines: 7 August, 7 November, 7 February and 7 May
A quarterly update is a short summary of the income and expenses in your digital records. It is not a tax return and it does not trigger a tax payment. You send the totals for each self-employment and property business every three months, even if nothing came in or went out.
| Update deadline | Standard period ends | Calendar period ends |
|---|---|---|
| 7 August | 5 July | 30 June |
| 7 November | 5 October | 30 September |
| 7 February | 5 January | 31 December |
| 7 May (following tax year) | 5 April | 31 March |
Standard periods follow the tax year, 6 April to 5 April. Calendar periods run from 1 April and end on the last day of the month, which can make record keeping simpler if your accounts run April to March. You pick calendar periods in your software for each income source before the first update, and you cannot change the choice for that tax year once you have sent an update.
- Each update covers the whole tax year to date, not just the last three months, so a later update corrects an earlier one.
- You can send an update any time from the end of the period up to the deadline, and up to 10 days early if you expect no more transactions.
- You do not need to make accounting or tax adjustments before a quarterly update.
- For jointly let property you can include income only, and report the expenses after the tax year ends.
- You must send all four updates before you can submit your tax return.
Penalty points: 2026–27 is different from 2027–28. HMRC applies no penalty points for late quarterly updates in the 2026–27 tax year. That relief covers the first group only. From 2027–28 each late quarter earns one point, and four points bring a £200 penalty. Late tax returns earn points in every year, including 2026–27.
The Association of Taxation Technicians asked in September 2026 for the relief to be extended to the April 2027 group. No extension had been confirmed when this page was checked on 10 October 2026, so plan to meet every deadline.
How to get ready before 6 April 2027
- Work out your 2025–26 gross income. Add self-employment turnover and property income, using your own share of joint property.
- File your 2025–26 Self Assessment return on time. It is due by 31 January 2027, and HMRC uses it to decide who is over the line.
- Sign up. You need to be registered for Self Assessment and to have filed a return in the last two years. HMRC is encouraging people to sign up early.
- Choose compatible software, or decide who acts for you. Check the HMRC software list for your income types, or use bridging software if you keep a spreadsheet.
- Start digital records on 6 April 2027 for each self-employment and property business.
- Send your first update by 7 August 2027. Standard periods cover 6 April to 5 July.
Your tax returns for 2025–26 and 2026–27 are filed the usual way. Your first return from MTD software is for 2027–28, due by 31 January 2029. Tax due is still paid by the usual dates, not on the quarterly deadlines.
Making Tax Digital calculator FAQs
Is the MTD threshold based on profit or turnover?
Turnover. HMRC uses your total gross income from self-employment and property before expenses and allowances. A business that takes £32,000 and makes £12,000 profit still counts as £32,000.
Do I add rental income and self-employment income together?
Yes. Add the gross income from every self-employment and property source for the tax year. For jointly owned property, use your share. If you only receive your share after expenses have been taken off, HMRC uses that figure.
Do salary, dividends, pensions or partnership profit count?
No. PAYE pay, dividends, State Pension, private pensions and your share of profit as an individual partner do not count towards the line. If you also have separate sole trader or property income, that income can still bring you into MTD.
What if my income is exactly £30,000?
HMRC says the income must be more than the threshold, so a total of exactly £30,000 is not over the line. The same applies at £50,000 and £20,000.
Which tax return does HMRC use for the April 2027 group?
The 2025–26 Self Assessment return. HMRC writes to people it finds over the line, but a missing letter does not excuse you. You are expected to check your own position.
What are the quarterly update deadlines?
7 August, 7 November, 7 February and 7 May. Standard periods end on 5 July, 5 October, 5 January and 5 April. Calendar periods end on 30 June, 30 September, 31 December and 31 March. The deadlines are the same either way.
Are quarterly updates extra tax returns or payments?
No. They are short summaries of income and expenses taken from your digital records. You still complete a tax return and pay any tax due by the usual dates, generally 31 January after the tax year ends. You must send all four updates before you can submit that return.
Do I get penalty points for late updates in 2027–28?
On HMRC’s current guidance, yes. The relief from penalty points for late quarterly updates covers the 2026–27 tax year only. From 2027–28 each late quarter earns a point, and four points bring a £200 penalty. Tax bodies have asked for the relief to be extended to the April 2027 group, but no extension had been confirmed when this page was checked on 10 October 2026.
Can I keep using spreadsheets?
Possibly. HMRC lists bridging software that links spreadsheet records to its systems. Check the software finder for the income types and update periods a product supports before you buy it.
Can I leave MTD if my income falls?
Once you are in, you can choose to opt out if your qualifying income stays below the line for three tax years in a row. HMRC explains the steps in its guidance on changes in circumstances.
What if all my self-employment and property income has stopped?
If it all ended before your MTD start date, you do not need to start MTD. Tell HMRC, because it may otherwise sign you up from the records it holds, and keep filing returns for the years you had income. If it ended after you started, send a final quarterly update covering the period up to the end date, tell HMRC the end date by that update’s deadline, and include the income in the tax return for that tax year using MTD software. You stop using MTD after that tax year.
Is this an official HMRC calculator?
No. Ultimate Info Guide is independent and is not linked to HMRC. The tool does arithmetic on the figures you type in. Use HMRC’s own checker to confirm your position.
Official sources
The tax rules on this page are based on HMRC’s published guidance, checked on 10 October 2026. The request to extend the penalty relief is sourced separately to the Association of Taxation Technicians. Links are here so you can read each source yourself.