Tools / Can you opt out of MTD?
Not by preference. Once you are over the threshold it is a legal requirement, and the only route out is an exemption HMRC has to grant.
You cannot opt out of Making Tax Digital simply because you would rather not do it. Once your qualifying income exceeds the threshold for a given year, keeping digital records and filing quarterly updates is a legal requirement. The only routes out are being in an exempt group, or applying successfully for a digital exclusion exemption.
Two obligations, and people often only notice the second. First, keep digital records of income and expenses as you go, rather than reconstructing them in January. Second, send a quarterly update through HMRC-recognised software. The annual return still happens, as a final declaration, by 31 January as before.
There are no late-submission penalty points for quarterly updates during 2026/27. HMRC has made the first year a soft landing. From April 2027 a missed quarterly update earns a penalty point, and four points triggers a £200 penalty. Points-based penalties are designed to catch repeated lateness rather than one slip.
This makes 2026/27 the cheap year to get it wrong. If you are mandated from April 2026, you can spend the first year building the habit and fixing your record keeping without a penalty for stumbling. That window closes in April 2027.
Apply for a digital exclusion exemption. HMRC will consider it where using digital tools is not reasonable or practical for you, taking into account age, disability or health, lack of reliable internet access, and religious beliefs incompatible with electronic communication. It is a decision HMRC makes, not a box you tick, and you should apply rather than simply stopping.
If you are below the threshold you can join MTD voluntarily. Whether that is sensible depends on your records. If you already use bookkeeping software, quarterly updates are a small extra step and you spread the work across the year. If you keep receipts in a shoebox, volunteering adds four deadlines to your year for no benefit.
Check whether MTD applies to you
Not by choice. Once your qualifying income is over the threshold, MTD is a legal requirement. The only routes out are falling into an automatically exempt group or applying successfully for a digital exclusion exemption.
Yes, for individuals with qualifying income above the threshold: over £50,000 from April 2026, over £30,000 from April 2027, and over £20,000 from April 2028.
There are no late-submission penalty points during 2026/27. From April 2027 a missed quarterly update earns a penalty point and four points trigger a £200 penalty.
Yes. It makes sense if you already use bookkeeping software, since quarterly updates then spread the work across the year. It adds four deadlines for no benefit if your records are not already digital.
Last verified 16 September 2026. This is an estimate from a calculator, not tax advice, and GlideOps is not a firm of accountants. It uses 2026/27 rates for England and Northern Ireland and cannot see your full circumstances. Check anything that matters against HMRC guidance or an accountant before you file or commit money.