MTD Tax Calculator
Calculate your quarterly Making Tax Digital payments
Calculate your quarterly tax payments under Making Tax Digital (MTD) for Income Tax. Check if you need to register, estimate your quarterly payments based on rental income and expenses, and see your payment deadlines.
Calculate Your MTD Payments
Enter your estimated annual figures to calculate quarterly payment amounts and check if MTD applies to you.
Understanding MTD for Landlords
What is Making Tax Digital?
Making Tax Digital (MTD) requires landlords to keep digital records and submit quarterly updates to HMRC using MTD-compatible software. Instead of one annual Self Assessment, you'll report income and expenses four times per year.
Registration Thresholds
| Tax Year | Income Threshold | Status |
|---|---|---|
| 2026/27 | £50,000+ | Mandatory |
| 2027/28 | £50,000+ | Mandatory |
| 2028/29 | £30,000+ | Mandatory (threshold lowered) |
| 2029/30+ | £30,000+ | Mandatory |
Quarterly Deadlines
You must submit quarterly updates by the following dates:
- Q1: 5 August (6 April - 5 July)
- Q2: 5 November (6 July - 5 October)
- Q3: 5 February (6 October - 5 January)
- Q4: 5 May (6 January - 5 April)
Payment Deadlines
- Payments on account: 31 January and 31 July
- Balancing payment: 31 January (following tax year end)
- Final declaration: 31 January (replaces Self Assessment)
What Software Can I Use?
You need MTD-compatible software to submit quarterly updates. LandlordOS is designed to be MTD-ready, tracking income and expenses digitally throughout the year.
Frequently Asked Questions
Do I have to register for MTD?
You must register if your gross property income (before expenses) is £50,000 or more for tax years 2026/27 and 2027/28, or £30,000 or more from 2028/29 onwards. If your income is below these thresholds, MTD is voluntary.
What counts as rental income for MTD?
All UK property rental income counts, including rent from residential properties, commercial properties, and holiday lets. This is gross income before any expenses or allowances.
Can I still claim the property allowance under MTD?
Yes. If your property income is under £1,000 per year, you can still claim the property allowance and won't need to register for MTD. If your income is between £1,000 and the MTD threshold, you can claim the allowance but aren't required to register.
What happens if I miss a quarterly deadline?
HMRC may charge penalties for late quarterly updates. Initial penalties start at £200, with daily penalties of £10 per day (up to 90 days) for continued non-compliance. It's important to submit on time even if your income or expenses are zero for that quarter.
Do I still need to do a Self Assessment?
No. Once you're in MTD, you'll submit a final declaration by 31 January instead of a Self Assessment. However, you still need to submit your four quarterly updates throughout the year before the final declaration.
How do payments on account work under MTD?
You'll make two payments on account (31 January and 31 July), each worth 50% of your previous year's tax bill. Then you'll make a balancing payment by 31 January if you owe more than the payments on account covered.
What if my income drops below the threshold?
If your income falls below the MTD threshold, you must continue using MTD until you formally apply to leave the scheme. You cannot automatically exit just because your income has reduced.
Can I use spreadsheets for MTD?
No. HMRC requires you to use MTD-compatible software that can digitally connect to their systems. Spreadsheets alone are not sufficient, though some MTD software can import data from spreadsheets.
Do I need separate software for each property?
No. One piece of MTD software can manage all your properties. The software should allow you to track income and expenses for multiple properties under your single MTD account.
What records do I need to keep digitally?
You must keep digital records of all income received, expenses paid, and any other information needed to calculate your tax liability. This includes rent received, dates of transactions, and details of all allowable expenses. Records must be kept for at least 5 years.