Create an account, then paste in your business bank statement, tick off the categories, and get the cumulative quarterly figures for Making Tax Digital for Income Tax. Download them as a PDF or CSV file, ready to import into your spreadsheet or HMRC-recognised software such as 123 Sheets.
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Many sole traders and landlords just need the right totals to enter in their filing software. This does that part, without the cost or complexity of full accounting software.
MTD Software works out the figures and lets you download them as a CSV file or PDF. It does not submit to HMRC, so you need HMRC-recognised software or bridging software for that. HMRC requires your records and your submission software to be digitally linked, so import the CSV rather than retyping figures.
Download the figures already filled into the 123 Sheets self-employment spreadsheet, upload it to 123 Sheets and submit your quarterly update to HMRC. No retyping.
Ask them which file import they accept. The CSV download is a plain table of figures that most products can take in, and if the columns do not match you can rearrange them in Excel and import the file. Avoid retyping figures by hand, because HMRC requires a digital link.
See GOV.UK’s list of software compatible with Making Tax Digital for Income Tax.
Send them the PDF or CSV. It shows income, each expense category and taxable profit for the period.
Switching from other software part-way through the year? Open “Already submitted quarters with other software?” above the bank grid, choose the last quarter you submitted, and enter the cumulative totals from that submission. Then start from the next quarter here.
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) means sole traders and landlords keep digital records and send HMRC four quarterly updates a year, then a final declaration. It applies from 6 April 2026 if qualifying income is over £50,000, from 6 April 2027 if over £30,000, and from 6 April 2028 if over £20,000. Check GOV.UK for the current rules.
Each update covers everything from 6 April to the end of that quarter, so the second update includes the first quarter. This tool adds the quarters together for you.
Plain-English answers to the questions sole traders ask about Making Tax Digital for Income Tax.
What the calculator does, who it is for and what it does not do.
A simple method for sorting a bank statement into HMRC categories.
What a spreadsheet can and cannot do, and the simpler alternative.
Start dates, the £50,000, £30,000 and £20,000 thresholds, and what you have to do.
The four periods and deadlines for 2026/27, with calendar quarter dates.
Which category to use for phones, broadband, hosting, travel and cars.
How each update adds up from 6 April, with a worked example.
They are your total income and your expenses by category for the period, plus the taxable profit that follows from them. HMRC asks for them in each quarterly update.
No. MTD Software is not HMRC-recognised software and does not submit anything. It calculates your cumulative figures and lets you download them as a PDF or a CSV file, which you can import into your spreadsheet or bridging software (such as 123 Sheets) to submit.
HMRC requires the software or spreadsheet that holds your records to be digitally linked to the software that submits your update, with no manual copying of figures between them. A file transferred or imported into your submission software is one of the link types HMRC lists. MTD Software provides a ready-filled 123 Sheets spreadsheet and a CSV download; you remain responsible for checking that your own set-up meets HMRC’s rules, so check the GOV.UK guidance or ask HMRC. See GOV.UK: create digital records.
Yes. Use Import bank file, choose your bank’s CSV or paste it, and match each column to Date, Description, Paid Out, Paid In or Amount. The calculator guesses the columns for you, shows the totals so you can check them against your statement, and remembers the layout next time.
Yes. Open “Already submitted quarters with other software?” above the bank grid, say which quarter you submitted up to, and enter the cumulative totals from your latest submission. Then paste in the bank figures for the next quarter, and the calculator adds them to your totals to give the new cumulative figures. Check the brought-forward profit matches your previous software before you submit.
Everything is processed in your own browser. Your bank figures are not sent to or stored on our servers. We hold only your account email and your subscription status. Use Save my data to download a backup file to your own device, and Load my data to carry on next quarter.
£50 per year. Create an account, pay securely by card through Stripe, and the calculator opens straight away. The subscription renews each year until you cancel.
Sign in, open My account and choose Manage billing. You can cancel there and keep access until the end of the period you have paid for.
Choose Log in, then Forgot password. We email you a link to set a new one.
Tick Disallowable on that row. It is shown separately and is not deducted when working out your taxable profit. Depreciation is a common example.
Yes, if you report your income and expenses for income tax including VAT. Your bank statement shows the full amounts, so paste it in as it is. Record the VAT you pay to HMRC as an expense (for example under Admin Costs) and any VAT refund as Other Business Income. HMRC lets VAT-registered businesses report either including or excluding VAT as long as they stay consistent, and some VAT schemes, such as flat rate, are treated differently, so check with your accountant which suits you. MTD Software works out your Income Tax figures only. It does not prepare or submit VAT returns.
No. Choosing the right category for each entry is your responsibility. If unsure, ask your accountant or HMRC.