Track your quarterly income and expenses for MTD compliance with automatic tax liability estimates.
Penalty Points System: HMRC issues penalty points for late quarterly submissions.
Making Tax Digital (MTD) for Income Tax is a government initiative requiring sole traders and landlords to keep digital records and submit quarterly updates to HMRC. From April 2026, it applies to those with income over £50,000. From April 2027, the threshold reduces to £30,000, and from April 2028 it reduces again to £20,000.
You must submit quarterly updates within one month and seven days after each quarter end. Q1 (6 Apr - 5 Jul) deadline is 7 Aug, Q2 (6 Jul - 5 Oct) deadline is 7 Nov, Q3 (6 Oct - 5 Jan) deadline is 7 Feb, and Q4 (6 Jan - 5 Apr) deadline is 7 May.
HMRC operates a penalty points system for late quarterly submissions. If you receive 4 penalty points within 12 months, you will face a £200 fine. Additional late submissions result in further penalty points and increasing fines.
No, this is a tracking and estimation tool only. To submit quarterly updates to HMRC, you must use MTD-compatible software approved by HMRC. This calculator helps you prepare your figures before submission.
The threshold is based on your total self-employment and property income (gross income before expenses). If your combined income from these sources exceeds the threshold (£50k from April 2026, £30k from April 2027, £20k from April 2028), you must comply with MTD requirements.
This calculator is for estimation purposes only and does not constitute financial or tax advice. Tax calculations are based on 2026/27 rates and assume no other income sources. Actual tax liability may vary based on your personal circumstances, other income, and available allowances. This tool does NOT submit data to HMRC - you must use MTD-compatible software for official submissions. Consult a qualified accountant or tax advisor for personalised guidance.