This week we update you on payments on account due on or before 31 July 2026, HMRC has published the final two sections of the Using Making Tax Digital (MTD) for Income Tax manual, and you can book onto a forthcoming HMRC MTD for Income Tax webinar.
2025/26 payments on account (POAs): 31 July 2026 payment deadline
Earlier in the year HMRC alerted us to the treatment of POAs and balancing payments for taxpayers currently in testing and provided information on how these may be split between the new MTD service and the previous non-MTD Self-Assessment service. This reflects the way charge details are currently held across MTD and non-MTD Self-Assessment services as HMRC migrates taxpayer records from its legacy systems onto HMRC’s new strategic tax management platform.
As a result, taxpayers will still need to access both the new MTD Service and the previous non-MTD Self-Assessment service using their Personal Tax Account (PTA) or Business Tax Account (BTA) to see their total balance. At the beginning of 2026 HMRC wrote to taxpayers setting out the steps they needed to take to see their full position and meet their POA obligations.
As the second 2025/26 POA is due on or before 31 July 2026, HMRC is issuing a reminder to those affected that they may still need to take additional steps to check their full POA position.
HMRC has again written to taxpayers about this, with letters expected to begin landing on doormats from last week. The letter explains the steps they need to take to check their full balance and make the POA by the due date. It will also highlight the importance of checking these details and makes clear that interest will apply where payments are not made by the due date.
MTD for Income Tax updated guidance
HMRC has also now updated the final two sections of the Using Making Tax Digital for Income Tax manual. This covers:
- ‘Send quarterly updates’ which clarifies how quarterly updates cover the tax year, explains when to send updates, the impact of missing deadlines, and how to make changes after the fourth quarterly update, and
- ‘Submit your tax return’ which explains how to resolve calculation or software errors, submit your previous year’s tax return, and agent responsibilities.
Webinars
HMRC is also holding a range of webinars on MTD for Income Tax in the coming weeks as follows:
• for businesses: 'How to get ready for MTD if you are a business', and
• if you receive income from property, 'Get ready for Making Tax Digital – landlords and joint property owners'.
These will cover:
- the requirements of MTD for Income Tax,
- practical steps you can take to prepare your business,
- the rules, who will be affected and when,
- making informed software choices,
- authorising your agent, and signing up to MTD, and
- utilising any benefits and opportunities.
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