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Making Tax Digital for Income Tax is now live. Enter your estimated annual gross income to find out if — and when — you are affected.
Use your total turnover — this is gross income before any expenses. MTD thresholds are based on turnover, not profit.
From 6 April 2026, Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is mandatory for sole traders and landlords with gross income above £50,000. This is based on total turnover, not profit.
The £30,000 threshold applies from 6 April 2027. If your gross income is above £30,000, you will need to use compatible software and submit quarterly digital returns to HMRC from that date.
The MTD ITSA threshold is based on gross income (turnover) — the total amount you earn before deducting any business expenses. It is not based on profit.
HMRC has introduced a points-based penalty system for MTD non-compliance. Each missed quarterly submission earns a penalty point. Accumulate enough points and financial penalties apply. Early preparation is strongly recommended.
AutoInvoice creates the digital record trail — timestamped invoices, income history, and secure long-term storage — that MTD requires you to maintain. Direct HMRC submission integration is on the product roadmap. AutoInvoice is not currently a registered HMRC MTD software provider.