Making Tax Digital testing - don't miss any 31 January 2026 tax payment due
We have received feedback from members about how tax payments are being displayed in HMRC's systems where the taxpayer is part of the testing phase for Making Tax Digital for Income Tax (MTD). In some cases, this could result in taxpayers believing that they have less to pay by 31 January 2026 than is actually the case.
Issues are likely where the taxpayer has both a balancing payment for the 2024/25 tax year and payments on account for the 2025/26 tax year. The reason is due to the fact that registering for MTD will move the taxpayer to a new platform instead of HMRC's legacy self-assessment system.
As part of moving taxpayers over to the new platform, tax payments for those in MTD testing will no longer be monitored under the legacy self-assessment system, but at the same time the balancing payment for the 2024/25 tax year will not be shown in the new platform. This may mean that taxpayers incorrectly believe that their 2024/25 balancing payment is no longer due.
We have raised the issue with HMRC, however any solutions will unfortunately not be possible before the 31 January 2026 tax payment deadline. Therefore, where a taxpayer is in testing, it will be necessary to double check any amounts due before arranging payment.
Checking the correct amount payable
Agents will be able to confirm any payments on account their client is due for the 2025/26 tax year via their Agent Services Account (ASA) and can log into the legacy self-assessment system to view any balance due for the 2024/25 tax year.
Individuals looking after their own tax affairs should check any correspondence they have received from HMRC confirming their 2024/25 balancing payment and add on their first payment on account for 2025/26, which should be shown on their personal tax account.
Further resources and support
The ATT has a range of MTD resources for members and the public, which are available via our MTD landing page. We are also running a MTD – your technical questions answered webinar on 24 February 2026.
You may wish to sign up for our MTD peer-discussion groups, where attendees can share and discuss their practical concerns around MTD and support each other in an open forum.