Should You Volunteer for MTD or Wait?

Making Tax Digital (MTD) for Income Tax is coming - and if you’re a landlord, you’ve probably already seen the headlines.

From April 2026, landlords earning over £50,000 will need to comply, with the threshold dropping to £30,000 the following year.

But what if you’re not there yet?

Should you just bite the bullet and sign up early - or wait until you absolutely have to?

This guide breaks down the pros, cons, and what actually makes sense depending on your situation.

Quick recap: when MTD applies to landlords

We’ll keep this brief - you can read our complete guide on MTD for more information but the key things to know are:

• £50,000+ income → from April 2026
  
• £30,000+ income → from April 2027
  
• £20,000+ income → expected from April 2028
  
  

MTD requires landlords to:

• Keep digital records
  
• Submit quarterly updates to HMRC
  
• Finalise their tax position at year-end using HMRC-recognised MTD software
  

Can you volunteer for MTD early?

Yes - HMRC allows landlords and sole traders to sign up voluntarily before they’re required to.

You’ll typically need:

• To be up to date with your latest tax return
  
• Compatible MTD software that’s HMRC-recognised
  
• A willingness to send quarterly tax submissions

Why some landlords are choosing to volunteer early

For the right landlord, early adoption can actually make the transition easier.

1. You spread the workload over time

Instead of rushing to get compliant by April 2026 or 2027, you can ease into it gradually.

2. You can test your setup before it matters

Bank feeds, expense categories, and receipt tracking - these all take time to get right, especially if you’re not currently using digital software. Doing this early reduces the risk of error when it counts.

3. You get better visibility on your numbers

Quarterly updates force you to stay on top of your income and expenses - which can help avoid tax surprises.

4. You’re already most of the way there

If you’re already using accounting or property management software, switching to MTD may be a relatively small step.

5. You can work through issues before mandatory deadlines

Even though HMRC is expected to take a more supportive approach when MTD first becomes mandatory, that doesn’t remove the pressure of getting everything right from day one.

Volunteering early gives you more time to:

• fix errors
  
• refine your process
  
• build confidence with quarterly reporting

‍The downsides of volunteering early

It’s not all upside - there are a few important trade-offs to consider before volunteering earlier than you need to:

1. You’re bringing forward the admin

Quarterly reporting doesn’t wait until 2026 - it starts as soon as you sign up.

That’s more frequent deadlines, more structure, and less flexibility.

2. It could cost you more

If you use an accountant, MTD will almost certainly increase your accountant fees - especially if you volunteer early.

That’s because MTD shifts landlords from 1 annual tax return to 4 quarterly submissions plus a final declaration.

Even if each quarterly submission is simpler than a full return, it still creates more touchpoints, more reviews, and more admin work for your accountant.

Many firms have already indicated they will:

• move clients onto monthly or quarterly pricing models
  
• charge additional fees for MTD submissions and support
  
• require clients to adopt specific software (sometimes at an added cost)
  

In practical terms:

• landlords who previously paid £200–£500/year for a simple tax return
  
• may see costs increase to £30–£100+ per month, depending on complexity and service level
  
  

Exact pricing varies, but the direction is clear: more frequent reporting will equal higher ongoing costs.

3. There’s no “trial period”

Once you opt in, you’re expected to follow the rules properly. This isn’t a test environment - it’s the real system and you're committed. 

HMRC says “you can leave MTD if you are no longer eligible or required”. This is typically in cases where your income falls below the threshold, or you stop receiving property or self-employment income.

If you chose to sign up voluntarily despite being below the threshold, you may be able to leave in future - but HMRC does not position this as a short-term trial, so you should expect a level of commitment once you opt in.

‍4. It may be unnecessary (for now)

If your income is well below £30,000 or £50,000, volunteering early may just mean extra work without much immediate benefit.

So… should you volunteer for MTD?

It depends on where you are today.

It probably makes sense to volunteer if you:

• Are close to the £50k or £30k threshold
  
• Already use digital accounting or landlord software
  
• Have multiple properties or more complex finances
  
• Want to avoid a last-minute rush to comply
  

You’re probably better off waiting if you:

• Are comfortably below the thresholds
  
• Still rely on spreadsheets or paper records
  
• Want to keep costs down for now
  
• Aren’t confident that your current system is ready
  
  

There’s no “right” answer - just what’s right for your setup.

A smarter alternative: prepare now without signing up

For most landlords, this is the sweet spot.

You don’t need to formally join MTD yet to get ahead of it (unless you meet the $50,000 threshold mentioned above).

1. Move to digital record-keeping now

If you’re still using spreadsheets or paper, start transitioning.

Even simple landlord software can:

• automate expense tracking
  
• reduce errors
  
• make future MTD compliance much easier
  

2. Separate your property finances

A dedicated bank account for your rental income and expenses makes everything cleaner.

It also makes:

• tracking easier
  
• reporting simpler
  
• software integration smoother
  

3. Start thinking in quarters

You don’t need to submit anything yet - but start reviewing your finances every 3 months.

This builds the exact habit MTD will require.

4. Clean up your expense categories

Messy records are one of the biggest pain points when switching to MTD.

Under MTD, your records need to be structured in a way that aligns with HMRC’s reporting categories, not just whatever makes sense in a spreadsheet.

Take time now to:

• standardise categories
  
• remove duplicates
  
• get consistent
  

5. Trial software before committing

Don’t wait until the deadline to choose a tool.

Test different options, see what fits your workflow, and build confidence before it becomes mandatory. Just remember, whichever tool you decide on will need to be HMRC-recognised. 

Most landlords will need to do this anyway

Even if you’re below the threshold today, MTD isn’t going away.

• Around 864,000 individuals will be affected by the £50,000 threshold
  
• Over 1 million more will be brought in at £30,000
  
• Roughly 2.9 million people could eventually fall within scope
  

For many landlords, it’s not a question of if - just when.

Volunteer early or wait?

Volunteering for MTD isn’t something you need to do early.

But it can be a smart move if:

• you’re close to the threshold
  
• your systems are already in good shape
  
• you want a smoother transition

You can go to the HMRC to register for MTD early.

For most landlords, though, the best approach is simple - prepare now and switch when it makes sense.

That way, you avoid both the panic of a last-minute transition and the cost of jumping in too early.

Related Articles

• Best Free MTD software for Landlords
• Common MTD Myths Debunked 
• UK MTD Hub for all things MTD related to landlords

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