Making Tax Digital Calculator
The Making Tax Digital (MTD) initiative requires sole traders and landlords to keep digital records and submit tax returns electronically. Whether you need to comply with these requirements depends on various factors. Use the calculator below to determine if you’re required to comply with MTD.
Who Will Need to Follow MTD for ITSA?
You will be required to keep digital records and submit updates through Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) if you are:
Self-employed
- A sole trader carrying on a business in your own name.
- Earning annual business income above the MTD ITSA threshold.
A Landlords:
- Receiving income from letting out UK or overseas property.
- With total property income above the specified MTD ITSA threshold.
⚠️ This calculator is for informational purposes only and should not be relied upon for tax, legal, or accounting advice. Please consult your own advisers before making any decisions.
Frequently Asked Questions
What is Making Tax Digital (MTD) & who does it apply to?
Making Tax Digital (MTD) is a UK government initiative aimed at modernising the tax system by requiring businesses and individuals to keep digital records and submit tax returns using HMRC-recognised software. MTD currently applies to all VAT-registered businesses, regardless of turnover. It will also extend to self-employed individuals and landlords earning over £50,000 from April 2026, and over £30,000 from April 2027.
How do I calculate VAT under Making Tax Digital?
To calculate VAT under MTD, you need to maintain digital records of your business transactions and use HMRC-compatible software to prepare and submit your VAT return. This MTD Calculator helps estimate your VAT liability each quarter, offering a quick and easy way to stay compliant, avoid errors and ensure accurate filings.
What software can I use to stay compliant with Making Tax Digital?
To stay compliant with MTD, you must use software that is recognised by HMRC for digital record-keeping and VAT return submissions. RentalBux’s MTD Calculator is designed to make it easier for businesses and accountants to calculate VAT, organise digital records and submit returns efficiently.