Person holding sign with the words Tax Refund written on it

HMRC Launches New Digital Refund Service for MTD for Income Tax

6 May, 2026

HMRC has reached an important milestone in the rollout of Making Tax Digital for Income Tax (MTD) with the introduction of a new digital service for requesting refunds. This development marks a significant step forward in enhancing the digital tax experience for both taxpayers and their agents.

From 5 May 2026, taxpayers and their authorised main agents who are using MTD can now request tax refunds online through a dedicated HMRC digital service.

Access to the service is available via:

  • the taxpayer’s HMRC Online Account (Personal Tax Account / Business Tax Account), or
  • the Agent Services Account (for authorised main agents only).

and is currently available to MTD customers who:

  • file their tax returns using MTD-compatible third-party software, and
  • have their records migrated to HMRC’s Enterprise Tax Management Platform (ETMP) as part of the MTD sign up process.

A key feature of this launch is the introduction of a refund tracking capability, allowing users to monitor the progress of their claims in real time and offers greater transparency and control.

The tax process is intentionally structured into separate digital steps being tax return submission completed via third-party software, and refund request submission and tracking. 

This separation is a deliberate design choice by HMRC. It ensures that each stage of the process is handled through specialised systems, improving both efficiency, security and improvements over time.

HMRC’s online services have central role in the MTD journey. They allow customers and agents to manage business income sources, view tax obligations and payments, access tax calculations and now, submit and track refund requests

The service is initially launching in a controlled live testing phase. This approach allows HMRC to closely monitor how the system performs in real-world use, understand customer and agent behaviours, identify areas for improvement and refine guidance and support materials.

During this period, HMRC will also collaborate with software providers to explore opportunities for creating an even more seamless, integrated refund journey in the future.

This milestone signals continued progress toward a fully digital end-to-end tax system. As adoption grows, HMRC aims to further streamline processes, reduce friction, and provide a more intuitive experience for taxpayers and their agents.

The ATT would welcome any comments on the new system and will continue to keep members and taxpayers informed of any further MTD advancements.