Last checked 19 October 2026
Quick answer
HMRC says you can sign up for Making Tax Digital (MTD) for Income Tax before you need to use it, to help you get ready, for the current tax year or the next one. You must be registered for Self Assessment and have sent a tax return in the last 2 years. While you volunteer, HMRC says you won’t get penalties for late quarterly updates. But when you sign up you agree to MTD’s new penalty rules for late tax returns and late payment, and HMRC says you can’t go back to the old ones, even if you stop volunteering.
This is general information, not tax advice. Check GOV.UK or speak to an accountant about your situation. Why we say this.
If your turnover means MTD for Income Tax starts for you in April 2027 or April 2028, you might be wondering whether to start early and get the hang of it first. HMRC allows that. This guide explains what volunteering involves, using HMRC’s own guidance, so you can weigh it up with your accountant.
Who has to use MTD, and when
HMRC’s guide to finding out if and when you need to use Making Tax Digital for Income Tax says it depends on your qualifying income, which is your self-employment and property income before expenses:
| Qualifying income | In the tax year | You need to use MTD from |
|---|---|---|
| Over £50,000 | 2024 to 2025 | 6 April 2026 |
| Over £30,000 | 2025 to 2026 | 6 April 2027 |
| Over £20,000 | 2026 to 2027 | 6 April 2028 |
Our guide to the £30,000 threshold explains what counts as qualifying income. Volunteering means signing up before your start date, or signing up when you don’t expect to reach a threshold at all.
Who can volunteer
HMRC’s sign up guidance says that to sign up you must:
- be registered for Self Assessment
- have submitted a tax return in the last 2 years
It also says you can sign up before you need to use MTD “to help you get ready”, and that you can sign up for the current tax year or the next one. Its example is someone who needs to use MTD from 6 April 2027 signing up and volunteering now.
MTD for Income Tax is for sole traders and landlords. HMRC says partnerships will need to use it in the future, with the timeline to be set out later. If you might be exempt, check our guide to MTD exemptions first.
Signing up partway through a tax year
If you join during a tax year, there’s catching up to do. HMRC says you’ll need to use compatible software to send any missed quarterly updates for the year so far.
Its Create digital records guidance adds that if you sign up partway through the tax year, you need to create digital records from the start of the tax year, which are then included in your first quarterly update.
The quarterly update deadlines are 7 August, 7 November, 7 February and 7 May. Our guide to quarterly updates explains what you send.
The penalty change you can’t undo
This is the part to read carefully. HMRC’s guidance on penalties for MTD volunteers says that if you’re using MTD for Income Tax, new penalties replace the current late submission and late payment penalties for your personal tax return.
HMRC says:
- you’ll be asked to agree to the new penalties in the sign up service
- you won’t be able to change your mind once you’ve agreed
- you can’t go back to the previous penalties, even if you stop volunteering
- the current penalties still apply to earlier tax years
HMRC’s example is that if you volunteer from 6 April 2026, the current penalties still apply to your 2025 to 2026 tax return, due by 31 January 2027. HMRC says it will send you a letter confirming when the new penalties apply to you.
What the new penalties look like for volunteers
HMRC’s Send quarterly updates guidance says penalties don’t apply to late quarterly updates while you’re volunteering. Penalty points do still apply to late tax returns, and if you reach 2 points you’ll get a £200 penalty. HMRC says there are no changes to how late payment interest works.
You still need to keep digital records and send your quarterly updates before you can submit your tax return. Our guide to MTD penalties covers the points system in more detail.
Your tax return as a volunteer
HMRC says you still send a normal Self Assessment tax return for the tax year before you start using MTD. After that, its Submit your tax return guidance says you use your MTD software to complete and submit your return by 31 January following the end of the tax year.
One detail worth knowing: HMRC says that if you think you’re due a tax refund, you can’t claim it in your tax return using MTD software, and points you to its help and support guidance instead. If you often get a refund, ask your accountant how that would work for you.
Choosing software first
You’ll need software that works with MTD for Income Tax before you sign up. HMRC’s sign up guidance says to always check with the software provider that their software will meet your needs. Our guide on checking whether your app is MTD software explains how to use HMRC’s software finder.
Opting out if you change your mind
HMRC’s guidance on checking MTD in your HMRC online account lists “opt out if you are voluntarily using Making Tax Digital for Income Tax” as one of the things you can do there.
HMRC’s If your circumstances change guidance says that if you choose to opt out:
- you no longer need to create digital records or send quarterly updates
- any updates already sent are deleted for the tax year you opt out
- you must send a Self Assessment tax return for that tax year
Remember the penalty point above: opting out doesn’t take you back to the old penalty rules. Our guide to MTD and changes in your circumstances covers opting out and switching software.
Questions to ask before you volunteer
- When would I have to start anyway, based on my qualifying income?
- Am I comfortable agreeing to the new penalty rules for good?
- Have I picked software and checked it covers my income sources?
- If I join partway through the year, can I catch up my records from 6 April?
- Do I usually get a refund, and how would that work under MTD?
Your accountant can help you answer these for your own situation. Our step by step guide to signing up for MTD covers the sign up service itself.
Frequently asked questions
Can anyone volunteer for MTD for Income Tax?
HMRC says you must be registered for Self Assessment and have submitted a tax return in the last 2 years. MTD for Income Tax covers sole traders and landlords.
Will I get penalties for late quarterly updates as a volunteer?
HMRC says penalties don’t apply to late quarterly updates while you’re volunteering. Penalty points still apply to late tax returns.
If I stop volunteering, do the old penalties come back?
No. HMRC says you can’t go back to the previous penalties once you’ve agreed to the new ones, even if you stop volunteering.
Can I volunteer for next tax year instead of this one?
Yes. HMRC says you can sign up for the current tax year or the next one.
Sources
All checked on 19 October 2026.
- Sign up for Making Tax Digital for Income Tax (GOV.UK, HMRC)
- Find out if and when you need to use Making Tax Digital for Income Tax (GOV.UK, HMRC)
- Penalties for Making Tax Digital for Income Tax volunteers (GOV.UK, HMRC)
- Send quarterly updates (GOV.UK, HMRC)
- Create digital records (GOV.UK, HMRC)
- Submit your tax return (GOV.UK, HMRC)
- Check if Making Tax Digital for Income Tax has been added to your HMRC online account (GOV.UK, HMRC)
- If your circumstances change (GOV.UK, HMRC)
Where to check
What changed. : . 2 November 2026: First published.
