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Making Tax Digital Calculator for Landlords
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MTD for Landlords - estimate profit, tax and quarterly updates
From April 2026, many individual landlords will have to keep digital records and submit quarterly MTD updates for property income. The August MTD Calculator estimates your property profit, taxable income and income tax, shows an indicative MTD start year based on thresholds, and gives example payments on account. Enter your numbers, then click Calculate.
Planning guidance only, this is not tax advice. Always check HMRC rules or speak to a qualified adviser.
What this calculator does and why it’s different
Blends property and non-property income (self-employed turnover and other taxable income) to show where you land in the basic, higher and additional tax bands.
Applies the Section 24 mortgage interest credit (20% tax reducer) correctly, instead of treating interest as a deductible expense.
Estimates payments on account (illustrative 50/50 split) for cash-flow planning.
Shows an indicative MTD start year from current government phasing (property + self-employed gross):
£50k+ from 2026/27
£30k–£49,999 from 2027/28
Under £30k: not yet mandated (at time of writing).
Gives a clean banded tax table you can export to August alongside receipts and statements in the Documents feature.
How MTD for Income Tax works
You’ll keep digital records and submit quarterly updates of income and expenses for your property business (and any self-employment), plus an End of Period Statement (EOPS) for each business and a Final Declaration after the tax year.
Thresholds are based on combined gross from property + self-employment. Partnerships and lower thresholds have separate timelines.
Quarterly updates are summaries, not full tax returns, but keeping clean records all year makes the EOPS simple.
Inputs and assumptions
Annual gross rent - before expenses.
Allowable expenses - repairs, insurance, agent fees, etc. (exclude capital items).
Mortgage interest (annual) - the calculator applies a 20% credit to income tax due.
Self-employed turnover (non-property) - if you also trade as a sole trader.
Other taxable income - salary, pensions, dividends (before personal allowances).
Personal allowance - editable (tapers for higher incomes).
Tax bands - editable defaults show current thresholds and rates for the year you’re planning.
The Results panel shows Property profit, Taxable income after PA, Income tax before credit, Mortgage interest credit (20%), Estimated tax due, Quarterly MTD update (profit) and illustrative payments on account.
Worked example
Gross rent: £18,000
Allowable expenses: £6,000
Mortgage interest: £4,000
Other taxable income: £25,000
Self-employed turnover: £0
Personal allowance: £12,570
The calculator will:
Compute property profit = £12,000 (£18k − £6k).
Combine with other income, apply personal allowance and tax bands.
Work out income tax before credit, then reduce it by 20% × £4,000 = £800 (Section 24).
Show estimated tax due and payments on account (illustrative only).
Indicate your MTD start year based on combined gross.
How to use the August MTD Calculator
Enter gross rent, allowable expenses, and mortgage interest.
Add self-employed turnover (if any) and other taxable income.
Confirm personal allowance and tax-band settings for the planning year.
Click Calculate to see profit, tax and indicative MTD start year.
Disclaimer
The Making Tax Digital Landlord Tax Calculator is for general information and planning only. It uses simplified assumptions and editable rates. We can’t guarantee calculations are complete, current, or accurate for every landlord, property, or tax year.
This tool is not tax advice and is not a substitute for HMRC guidance on MTD for Income Tax or MTD for VAT (digital record-keeping, quarterly updates, compatible/bridging software). Outcomes may differ based on your accounting method, VAT status, property income, finance costs, and personal circumstances.
We accept no liability for decisions made using this tool. Always consult HMRC resources or a qualified tax adviser. Obtain professional advice before filing returns, registering for VAT, or making MTD submissions.
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