Should I join Making Tax Digital voluntarily?

Checked against GOV.UK on 14 August 2026

Volunteering lets you learn the system on an easier setting before your mandatory year, with one trade-off that is easy to miss.

What you can do

You can sign up before you need to, for the current tax year or the next one. HMRC's example: you may need to use MTD from 6 April 2027, but you can sign up and volunteer now.

The catch-up rule

If you sign up part-way through a tax year, you will need to use compatible software to send any quarterly updates already missed for the year so far.

Penalties while volunteering

• Penalties do not apply to late quarterly updates while you are volunteering.
• Penalty points still apply to late tax returns — and for volunteers the threshold is 2 points before a £200 penalty, not 4.
• HMRC will contact you to confirm when you have become liable for the new penalties after you sign up.

The payment grace period, once only

In your first year of the new penalties you get 30 days from the payment due date to pay in full or agree a payment plan before penalties start; after that it is 15 days. You only get the 30-day period once. If you volunteered and are now required to use MTD, you continue on 15 days — you do not get a fresh 30 days when you become mandatory.

The case for and against, plainly

For: you learn the software and the rhythm in a year where late updates carry no penalty, and you fix data problems before they matter.

Against: you take on four extra submissions a year earlier than the law requires, a lower tax-return penalty threshold, and you spend your one-off 30-day payment grace period early.

General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC.

Sources

• Sign up for Making Tax Digital for Income Tax (HMRC guidance)
• Penalties for Making Tax Digital for Income Tax (HMRC guidance)
• Use Making Tax Digital for Income Tax: send quarterly updates (HMRC guidance)

General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.

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