A: No. Once an individual is enrolled in MTD, they are required to comply with its provisions—including maintaining digital records, submitting quarterly updates, and filing a digital tax return—unless their qualifying income remains below the threshold for three consecutive years. Only after this period may they be exempted from MTD requirements.
As your client met the criteria for MTD participation, they will be subject to MTD regulations for at least the next three years unless they are digitally excluded. See the HMRC website for more information:
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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