Earning over £30k? MTD starts for you on 6 April 2027.
Check you're in, see what to do before then, and what tax to put aside. HMRC's rules in plain English. No signup. Nothing is saved.
A guide. Not tax advice.
This page turns HMRC's public guidance into estimates. It is not tax advice. Fixxa is software, not an accountant or tax adviser. Your real bill and your MTD date depend on things this page cannot see.
Before you rely on any figure, check gov.uk or ask a qualified accountant.
Your numbers
Everything customers paid you, before costs. Add self-employment and property income together. The £30k mark is the April 2027 MTD line.
Materials, van, fuel, tools, insurance, phone. Costs do not count towards the £30k line, only your tax. Not sure? Tap a share.
Your costs are under £1,000, so this guide uses the £1,000 trading allowance instead because it is bigger.
Example figures. Change them to yours.
Add more detailOPTIONAL
Before tax. Wages use up your tax-free amount first, so your trade profit can land in a higher band.
Check your CIS statements. It counts as tax you have already paid.
Are you in the April 2027 group?
You're over £30,000, so you're in.
£5,000 over the £30,000 line
- Check your 2025/26 turnover. HMRC uses it to decide your date. Your 2025/26 tax return is due by 31 January 2027.
- Pick MTD software. HMRC publishes a list of compatible software on gov.uk. Choose before April.
- Sign up with HMRC, or ask your accountant to. You need to be registered for Self Assessment and have filed a return in the last two years.
- From 6 April 2027, keep digital records. Your first quarterly update is due 7 August 2027.
All MTD start dates and update dates
- Income over £50,0006 April 2026
- Income over £30,0006 April 2027
- Income over £20,0006 April 2028
- Work done 6 Apr to 5 JulSend by 7 Aug
- Work done 6 Jul to 5 OctSend by 7 Nov
- Work done 6 Oct to 5 JanSend by 7 Feb
- Work done 6 Jan to 5 AprSend by 7 May
MTD means keeping your records in software and sending HMRC a short update every three months. Dates are a guide. Check them on gov.uk.
What tax to put aside
That is £13 of every £100 you invoice.
An estimate. Not tax advice.
- CostsWhat it costs you to do the work
- £7,000
- Tax and National InsuranceWhat HMRC takes from your profit
- £0
- Yours to keepTake-home after costs and tax
- £0
Show the sum
- Money inTurnover: what customers paid you
- £35,000
- CostsTaken off before tax
- -£7,000
- ProfitThe amount you are taxed on
- £28,000
- Income tax
- £0
- Class 4 National Insurance6% on profit between £12,570 and £50,270, then 2% above
- £0
- Already paid through CISTaken off by your contractors
- £0
- Your tax billWhat you still pay HMRC
- £0
- Take-home per monthProfit minus tax, over 12 months
- £0
VAT
When the tax bills land
A "payment on account" is an advance payment towards next year's tax. MTD changes how often you report, not when you pay.
Check it on HMRC's site
Every figure here comes from these gov.uk pages. Read the source before you rely on a number.
- Earning more than £30,000? Act nowHMRC's notice for the April 2027 group.
- Sign up for Making Tax Digital for Income TaxWho has to use it, and how to sign up.
- Income Tax rates and bandsThe first £12,570 is tax-free, then 20%, 40% and 45%.
- Self-employed National InsuranceClass 4: 6% on profit up to £50,270, then 2%.
- Payments on accountAdvance payments towards next year, due 31 January and 31 July.
- When to register for VATOnce turnover passes £90,000 in any 12 months.
Jargon explained
- Turnover
- All the money customers pay you, before you take off any costs. For MTD, self-employment and property income are added together.
- Profit
- Turnover minus your costs. This is what you are taxed on.
- Personal allowance
- The first £12,570 of your total income each year is free of income tax. Wages from another job use it up first.
- Class 4 National Insurance
- A second tax on profit that sole traders pay on top of income tax.
- CIS
- Construction Industry Scheme. Contractors take 20% or 30% off your pay and send it to HMRC. It counts as tax you have already paid.
- Self Assessment
- The yearly tax return you file to tell HMRC your profit and work out your bill.
- Payment on account
- An advance payment towards next year's tax. Each one is usually half of last year's bill, paid in January and July.
- Making Tax Digital (MTD)
- HMRC's rule that you keep digital records and send a short update every three months, then a final declaration.
A guide. Not tax advice.
Everything on this page is a general guide to help you plan. It is not tax advice, and nothing here is a promise of what you will owe or when MTD applies to you. Fixxa is not an accountant, tax adviser or agent of HMRC. Your real bill depends on your full circumstances.
Before you rely on any figure, check gov.uk or ask a qualified accountant.
What this guide uses and leaves out
- 2026/27 rates for England, Wales and Northern Ireland, checked against gov.uk on 20 October 2026. Rates and dates can change. Scotland has different income tax bands.
- MTD dates and thresholds are the ones HMRC has announced: over £50,000 from April 2026, over £30,000 from April 2027, over £20,000 from April 2028. HMRC decides using an earlier tax return, not the figures you type here. New to self-employment? Ask HMRC or an accountant when you start.
- Income tax and Class 4 National Insurance on trade profit. Class 2 is left out. HMRC treats it as paid above £7,105 profit and it is voluntary below.
- The £1,000 trading allowance is used only when it beats your costs.
- Wages are treated as already taxed through payroll. Only the extra tax from your trade is shown.
- Leaves out student loan, pension contributions, Gift Aid, marriage allowance, the child benefit charge, and savings, dividend or property income.
- Payments on account are simplified. They do not apply when last year's bill was under £1,000 or when more than 80% was paid at source.