MTD glitch risks confusion over 2025/26 payments on account

Published: 6th February 2026

Some taxpayers testing Making Tax Digital for Income Tax (MTD IT) are seeing confusing and incomplete payment information because their data is split between HMRC’s digital and self assessment systems. What’s happened?

HMRC has admitted that a problem affects taxpayers in the MTD IT pilot who are required to make payments on account for 2025/26. Their records are currently held in two places:

• the MTD IT system, which holds the 2025/26 payments on account, and
• the self-assessment (SA) system, which holds the 2024/25 balancing payment and some credits.

Because of this split, some statements are showing payments on account as “transferred to digital” or even as “nil”, giving the impression that nothing is due when, in fact, amounts are still payable.

To see the full position, taxpayers must view both their MTD IT and SA information via their personal tax account or business tax account at the same time.

HMRC has written to those impacted to explain:

• where to find payment on account information in their online accounts;
• that payments on account shown as “transferred to digital” or “nil” were in fact payable by 31 January 2026; and
• what to do if payments on account that have been transferred do not appear in the MTD income tax account.

In parallel, HMRC has added a message to affected MTD IT accounts warning users that they may need to check their SA account as well to confirm the correct position. Interest still applies on late payments.

Despite the display issues, HMRC has made clear that interest will be charged on payments on account not paid by the statutory due date. In other words, confusion on the statement will not, by itself, prevent interest from accruing.