What does this Making Tax Digital (MTD) calculator do?
Starts April 2026
HMRC is changing how you report rental income. Instead of one big annual tax return, you'll send short quarterly updates using HMRC recognised software.
What's changing
What's new
4 quarterly updates to HMRC (instead of nothing until January)
You'll need MTD-compatible software, can't use the HMRC website
Digital records must be kept throughout the year
A Final Declaration replaces your Self Assessment return
5 submissions per year in total (4 quarterly + 1 final)
What stays the same
More admin? Yes.
But it doesn't have to be painful.
MTD is a legal requirement, not a choice. The extra work comes from reporting quarterly and keeping digital records. The right software takes most of that off your hands so the real effort is getting set up, not the ongoing admin.
Q1
Apr–Jul
Due 5 Aug
Q2
Jul–Oct
Due 5 Nov
Q3
Oct–Jan
Due 5 Feb
Q4
Jan–Apr
Due 5 May
Plus a Final Declaration by 31 January, same deadline as your current HMRC Self Assessment.
Timeline
MTD is being rolled out in stages, based on your total gross rental income (that's before expenses). The bigger your income, the sooner it applies
Phase 1:
Landlords earning £50,000+
The first wave. If your combined rental and self-employment income tops £50k, you'll need to go digital and file quarterly.
Phase 2:
Landlords earning £30,000+
The threshold drops. Landlords with qualifying income over £30,000 must now comply with MTD requirements.
Phase 3:
Landlords earning £20,000+
Most landlords are now in scope. If that's you, you'll want to be ready well before this date.
Worth knowing:
"Qualifying income" is your total gross rental income plus any self-employment income, before expenses. It doesn't include your salary, pension, or dividends.
Your to do list
New to Self Assessment?
Step-by-step guide to registering with HMRC as a landlord. UTR numbers, deadlines, and what happens if you're late.
MTD Complete Guide
Quarterly updates, digital records, deadlines, exemptions, and how to prepare before April 2026.
Records & Penalties
What to keep,
Non-compliance with Making Tax Digital carries penalties similar to other tax filing failures. Missing quarterly submission deadlines or failing to maintain digital records can result in financial penalties
What to record digitally
All rental income received
Allowable expenses paid
Details of assets and liabilities
Mileage logs for property-related travel
Bank statements and transaction records
Late submission penalties
You get 1 point per late quarterly update
£200 fine once you hit 4 points
Points expire after compliant filing
No penalties
for late quarterly updates in your first year on MTD (2026/27). HMRC is giving everyone time to adjust.
FAQ
Got questions?
We've got answers
Is this official HMRC guidance?
Does it support MTD for VAT?
How accurate are results?
How is mortgage interest treated?
What about personal allowance taper?
Does it handle losses or FHL?
Can I change tax bands and rates?
What are payments on account?
What records do I need for Making Tax Digital (MTD)?
