MTD: “Averaging” Taxpayers Deferred Until 2027
10th December 2025
In the 2025 Autumn Budget, the government confirmed that taxpayers using profit averaging, such as farmers and creatives, will not be required to enter MTD for Income Tax Self Assessment (MTD for ITSA) in April 2026. Instead, this group has been pushed back to April 2027, giving these businesses additional time before digital quarterly reporting becomes mandatory.
Although the deferral is confirmed, HMRC has not yet clarified whether eligibility will be based on whether an averaging claim is made on a 2024/25 Self Assessment return, or if they will look back to prior years. This is important as in most cases an averaging claim is not made every year for tax planning reasons.
HMRC are yet to announce full details of this measure, but once they have, we will provide further updates.
Get In Touch
If you should have any queries or are unsure if this will impact you, please contact your local office or your usual Whitings contact.
