Two significant changes will take place from April 2026: Making Tax Digital for Income Tax (MTD IT) and mandatory payrolling of benefits in kind. 

While April 2026 is over a year away, these changes will require a lot of planning including how workflows and information flows will need to change. MTD IT will require many individuals to keep digital records and send quarterly updates to HMRC, while mandatory payrolling of benefits in kind will see the end of the form P11D process for many employers. In this episode we look at what taxpayers and their agents can do in the coming months to prepare.

Links

• Government and developers commit to MTD ITSA from 2026
  https://www.icaew.com/insights/tax-news/2024/nov-2024/government-and-developers-commit-to-mtd-itsa-from-2026
• MTD: what you should do now
  https://www.icaew.com/insights/podcast/the-tax-track/mtd-what-you-should-do-now 
• Making Tax Digital
  https://www.icaew.com/technical/tax/making-tax-digital
• Pros and cons of payrolling benefits
  https://www.icaew.com/insights/podcast/the-tax-track/pros-and-cons-of-payrolling-benefits 
• How to prepare for mandatory payrolling of benefits in kind
  https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/how-to-prepare-for-mandatory-payrolling-of-benefits-in-kind
• Payrolling Benefits and Expenses webinar
  https://events.icaew.com/pd/29313/payrolling-benefits-and-expenses
• What is Making Tax Digital for income tax?
  https://www.icaew.com/insights/tax-news/2025/jan-2025/what-is-making-tax-digital-for-income-tax

Panellists

• Stephen Relf, Technical Manager, Tax, ICAEW
• Caroline Miskin, Senior Technical Manager, Digital Taxation, ICAEW
• Adelle Greenwood, Technical Manager, Employment Taxes and National Insurance Contributions, ICAEW

Producer 

Ed Adams

Episode first published: 7 January 2025
Podcast recorded: 17 December 2024