A: According to HMRC's guidance, taxpayers who report qualifying income exceeding £50,000 in 2024/25 will typically be required to join Making Tax Digital (MTD) from April 2026. However, the following categories of taxpayers are temporary excluded and not obligated to participate in MTD until at least April 2027:
- Taxpayers with income derived from trusts or estates
- Taxpayers claiming averaging adjustments (primarily farmers, musicians, writers, and other creative artists)
- Taxpayers claiming qualifying care relief—for example, foster carers who would otherwise need to join MTD due to another source of qualifying income
- Taxpayers required to file non-residence (SA109) supplementary pages with their tax return
- Visiting performers (non-resident entertainers and sportspeople) who would otherwise need to join MTD because of another UK source of qualifying income
So as your client had a income from a trust which was declared on a 2024/25 tax return, the temporary exemption applies automatically. Consequently, there is no requirement for your client to inform HMRC that MTD does not apply to them for the 2026/27 period.
These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.
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