What is Making Tax Digital for Income Tax?

MTD ITSA replaces annual Self-Assessment for landlords and self-employed sole traders with four quarterly digital submissions plus a final declaration. You must use HMRC-recognised software (spreadsheets need bridging software). Penalties are points-based: 4 quarterly missed submissions = £200, with daily late-payment interest at base + 2.5%.

Am I in scope for MTD in April 2026?

If your gross self-employed income plus gross rental income for the 2024/25 tax year exceeded £50,000, yes. Below £50k but above £30k you're in from April 2027. Below £30k but above £20k you're in from April 2028.

Does this calculator submit to HMRC?

No. This calculator helps you plan your mandation date and quarterly cash. To submit MTD-compliant returns you need HMRC-recognised software (FreeAgent, QuickBooks, Xero, Hammock, Landlord Vision, etc.).

Making Tax Digital for Income Tax (MTD ITSA) phases in for UK landlords from April 2026. Above £50,000 of combined gross self-employed + rental income you are mandated from 6 April 2026; above £30,000 from April 2027; above £20,000 from April 2028. This calculator works out your mandation date, the cash to set aside each quarter, and the Self-Assessment payments-on-account schedule that runs alongside.

May 2026 • 2026/27 tax year

Making Tax Digital Readiness

MTD for Income Tax phases in from April 2026 (£50k threshold), April 2027 (£30k), April 2028 (£20k). Find your mandation date, the quarterly cash to set aside, and the SA payments-on-account schedule.

MTD ITSA compliance cost

Beyond the headline thresholds, expect £150–£500/year per landlord for MTD-recognised software, plus four quarterly digital submissions instead of one annual SA return. For small portfolios this is a real margin compressor — build into your operating-cost line from your mandation date onward.

My scenarios (0/10)

Save snapshots of your inputs to switch between scenarios (e.g. “65% LTV, higher-rate” vs “75% LTV, basic-rate”). Stored in your browser only — no login needed.

Mandation

MTD applies from

2027-04-06

Quarterly cash to set aside

Plan equal quarterly transfers to a tax savings pot.

Self-Assessment payments on account

31 January

£2,400

31 July

£2,400

Annual obligations timeline

Estimated cumulative tax-pot needed by each calendar date.

Quarterly MTD updates don't change your payment dates — the big SA payments still hit 31 January and 31 July. They just commit you to continuous bookkeeping.

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Related guides

Plain-English explainers for the rules behind this calculator.

Making Tax Digital for Landlords: Are You in the 2026 Wave?

10 min read

Frequently asked questions

Answers to the questions UK property investors most often have about this tool and the underlying rules.

What is Making Tax Digital for Income Tax?: MTD ITSA replaces annual Self-Assessment for landlords and self-employed sole traders with four quarterly digital submissions plus a final declaration. You must use HMRC-recognised software (spreadsheets need bridging software). Penalties are points-based: 4 quarterly missed submissions = £200, with daily late-payment interest at base + 2.5%.
Am I in scope for MTD in April 2026?: If your gross self-employed income plus gross rental income for the 2024/25 tax year exceeded £50,000, yes. Below £50k but above £30k you're in from April 2027. Below £30k but above £20k you're in from April 2028.
Does this calculator submit to HMRC?: No. This calculator helps you plan your mandation date and quarterly cash. To submit MTD-compliant returns you need HMRC-recognised software (FreeAgent, QuickBooks, Xero, Hammock, Landlord Vision, etc.).