MTD Compliance Checker
Check if Making Tax Digital affects you and calculate potential penalties for late filing or payment.
MTD Readiness Assessment
Gross income from self-employment before expenses
Gross rental income before expenses
Important Disclaimer
This tool provides indicative calculations only and does not constitute financial, accounting, tax, or legal advice. The accuracy of results depends on the accuracy of information you provide. Consult a qualified professional for complex situations.
Frequently Asked Questions
When does Making Tax Digital for Income Tax (MTD ITSA) become mandatory?+
MTD ITSA will become mandatory for self-employed individuals and landlords with annual gross income exceeding £50,000 starting in April 2026. Those with income over £100,000 must join the scheme earlier in April 2025. You must keep digital records and submit quarterly updates using compatible software.
What are the VAT registration thresholds for 2026/27?+
The VAT registration threshold remains at £90,000 for the 2026/27 tax year. Businesses must register for VAT if their taxable turnover exceeds this limit over a rolling 12-month period. Failure to register on time can result in significant penalties and interest charges from HMRC.
How are dividends taxed in the 2026/27 tax year?+
Dividends are taxed at 10.75% for the basic rate band, 35.75% for the higher rate, and 39.35% for the additional rate. The tax-free dividend allowance is reduced to £500 for the 2026/27 tax year. These rates apply after the personal allowance has been utilised against other income.
What is the employer National Insurance rate for 2026/27?+
Employers must pay 15% National Insurance on earnings above £5,000 per employee for the 2026/27 tax year. There is no secondary threshold, meaning the 15% rate applies to all earnings above the £5,000 annual limit. This rate applies regardless of whether the employee is on a full-time or part-time contract.
What is the Section 455 tax rate for company loans?+
The Section 455 tax rate for loans to participators is 35.75% for the 2026/27 tax year. This tax is payable nine months and one day after the end of the accounting period in which the loan is made. It is refundable to the company when the loan is repaid or written off.
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