Making Tax Digital for Income Tax: Payments on account update

With the second payment on account for 2025/26 becoming due by 31 July 2026, HMRC will be sending a letter regarding payments on account to all taxpayers who took part voluntarily in Making Tax Digital for Income Tax (MTD) for the 2025/26 tax year.

The letter explains that any balancing payment remaining unpaid for 2024/25, together with any underpayments for previous years and related interest and penalties, will be shown in the older Self-Assessment account (or in their agent’s Online Services Account).  Payments on account for the 2025/26 tax year onwards and any related penalties and interest will be shown in the individual’s MTD account and in the client’s record in the Agent Services Account (ASA).

When checking paper statements of account, payments on account for 2025/26 will show as ‘transferred to digital’ and will not be reflected in the Self-Assessment account. If the payments do not appear in the MTD account (or ASA for agents), the HMRC MTD helpline should be called using the dedicated number 0300 322 9619 for individuals or the usual agent helpline number following options 2 then 3.

 Payment deadlines have not changed under MTD. The first payment on account for 2025/26 was due by 31 January 2026 and the second by 31 July 2026.

We have been made aware of a few cases where those signed up for MTD from April 2026 have also had payment on account information for 2025/26 transferred to the MTD account. It is advisable to check both accounts to ensure that the correct payments are made and allocated correctly. 

Any overpayments of tax shown in the MTD account can be reclaimed using the new online service.