Making Tax Digital for income tax – short survey 7 April 2025

It’s now less than a year to the first tranche of mandation of MTD for income tax for unincorporated sole trade businesses and landlords with turnover exceeding £50,000. The Institute is inviting those members affected by this change to take a short five question survey which we are using as a temperature check to assess readiness and further discuss the challenges this presents with HMRC. The survey will remain open for the next two weeks and will take less than 5 minutes to complete. A more detailed survey on MTD will be launched before the summer. Take the survey now. 

The Northern Ireland Tax Committee met recently with HMRC’s MTD Programme Director who also was in attendance at the February 2025 Practice News webinar. HMRC gave an update on the current status of the MTD project whilst also reflecting on its challenges. HMRC’s ambitions for the next phase of testing in 2025/26 were also discussed. HMRC has recently been writing to agents who are likely to have clients in the first phase of mandation; this is now being followed by letters to taxpayers.  

HMRC is also keen to hear about the plans of our member firms to get ready for this major change and specifically why firms are not planning to take part in testing in 2025/26. In particular HMRC would welcome views on what challenges/blockers are getting in the way of participation. Email tax@charteredacocuntants.ie to share your views. 

Despite our reservations about MTD, the Institute will continue to work with HMRC on MTD readiness and is developing a cross-department MTD strategy to assist members in their preparations. We will also continue to represent members views as we approach April 2026. 

HMRC has also published new guidance for agents about client authorisations and signing clients up for making tax digital for income tax. The step by step guides for agents and individuals and guidance for sole traders and landlords have also been updated. These publications are available as follows: 

• Add your client authorisations for Making Tax Digital for Income Tax,

• Sign up your client for Making Tax Digital for Income Tax,

• Making Tax Digital for Income Tax as an agent: step by step,

• Making Tax Digital for Income Tax for individuals: step by step, and

• Sign up for Making Tax Digital for Income Tax.

From 7 April 2025 until next April, HMRC will also be contacting users who have signed up to participate in the MTD trial about how the testing of the service is progressing.