Required from 6 April 2026
If your 2024 - 25 qualifying income was more than £50,000, you should already be using MTD for Income Tax. This is mandatory sign-up, not volunteering.
Preparing and joining early
Joining MTD for Income Tax early.
You can prepare early without enrolling. Voluntarily signing up goes further and creates responsibilities that should be understood before you proceed.
General information only - last checked against HMRC guidance on 30 July 2026.
You do not need to volunteer simply to get ready.
You can choose suitable software, organise digital records and establish a regular bookkeeping routine without signing up for MTD before it becomes mandatory.
Voluntary sign-up means entering the MTD system, sending the required quarterly updates and agreeing to the penalty arrangements that apply to volunteers.
Start with your position
Do you need to sign up now?
Expected to join later
If a later threshold is likely to affect you, you may be able to volunteer for the current tax year or the next one. Compare preparing without enrolling against voluntary sign-up before deciding.
Not currently expected to be affected
You can still improve your bookkeeping and digital records without enrolling. Recheck your position after submitting the tax return HMRC will use for a later phase, or if your income sources change.
Compare your options
Prepare early or volunteer early?
Prepare without enrolling
This is the lower-commitment route and will suit many people who are not yet required to join.
- Choose software that fits the business
- Start keeping income and expense records digitally
- Practise a monthly or quarterly routine
- Agree responsibilities with your accountant or bookkeeper
- Check that every business and property source is covered
Sign up voluntarily
This can provide real experience of MTD before it becomes mandatory, but it also creates ongoing responsibilities.
- Use compatible MTD for Income Tax software
- Create the required digital records
- Send quarterly updates, including any already due
- Complete the annual tax return through compatible software
- Agree to the penalty arrangements for volunteers
Possible benefits of volunteering
- Learn the process before it becomes mandatory.
- Find software, record-quality or authorisation problems earlier.
- Establish a quarterly routine without penalties for late quarterly updates while volunteering.
- Receive more regular estimates of the eventual tax bill.
- Give you and your adviser time to settle responsibilities.
Commitments to understand
- You must agree that the new penalty arrangements will apply.
- You cannot return to the previous penalty system simply because you stop volunteering.
- Volunteers normally have a two-point threshold for late annual tax returns.
- Late-payment penalties and interest remain relevant.
- Quarterly updates remain required even though volunteers are not penalised for sending them late.
Who can sign up voluntarily?
HMRC says you can volunteer for the current tax year or the next tax year. You must be registered for Self Assessment and have submitted a tax return within the last two years. HMRC will check your eligibility during sign-up.
If you join during a tax year, compatible software must be used to send any quarterly updates already due for that year.
Before you sign up voluntarily
Make sure you can answer yes to these questions:
- Have you confirmed when MTD is expected to become mandatory for you?
- Have you checked whether an exemption might apply?
- Have you chosen software that supports MTD for Income Tax?
- Can the software handle every relevant business and property source?
- Have you agreed responsibilities with your accountant or bookkeeper?
- Are your records complete from the beginning of the tax year you select?
- Have you read HMRC's penalty guidance for volunteers?
If any answer is no, prepare first. There is no need to rush into voluntary enrolment merely to begin improving your records.