Under MTD for income tax, which is due to start for many sole traders and landlords from April 2026, the taxpayer must submit quarterly updates to HMRC. For 2026/27, the quarters end on:

If the taxpayer is VAT registered and is on VAT ‘stagger’ two or three, as explained in the table below, they may wish to consider aligning their VAT accounting periods  with the MTD for income tax quarters.  The VAT stagger periods are:

The taxpayer can make the request through their VAT online account or, if they have an agent, their agent can do it on their behalf through their agent services account. This is explained in more detail in an earlier article. 

This could bring administrative benefits, including from aligning filing deadlines, but it is important that all implications are considered before requesting a change to the VAT stagger. For example, the timing of the application can affect the number of returns that will be due before the change takes effect. Taxpayers should discuss this with their agent, if they have one, before taking any action. MTD for income tax is likely to have a significant impact on agents’ workloads and changes to staggers may add to these pressures in some circumstances. 

ICAEW members have reported that HMRC is now taking longer to approve changes in VAT accounting periods, with delays of up to six weeks in some cases. Taxpayers and their agents should consider the implications of this when requesting a change to the VAT stagger. 

Further information

• Register for VAT: Changing your VAT details - GOV.UK
• Making Tax Digital