Taxpayers who are required to use Making Tax Digital (MTD) for Income Tax from April 2026 should sign up now if they haven't done so already, says the Institute of Chartered Accountants in England and Wales (ICAEW).
Taxpayers who had combined gross income from sole trades and property businesses of more than £50,000 for 2024/25 must use MTD for Income Tax from April 2026.
More taxpayers will be required to use MTD from April 2027 and April 2028. Taxpayers who are not required to use MTD income tax can volunteer to do so.
HMRC estimates that approximately 864,000 taxpayers are required to use MTD for Income Tax from April 2026. The ICAEW says that approximately only 280,000 taxpayers have signed up so far, with 30,000 taxpayers having done so voluntarily.
The Institute said:
'ICAEW is encouraging taxpayers who have yet to sign up to MTD income tax to do so in good time in order to submit their first quarterly update by 7 August 2026. By signing up in advance of the first filing deadline, taxpayers and agents will give themselves more time to deal with any issues that may arise.'
Internet link: ICAEW