SALF1630 - Self Assessment: the legal framework: Miscellaneous: Making Tax Digital volunteers
To help customers prepare for MTD, Volunteers (formerly referred to as ‘participants’) can sign up for Making Tax Digital before being required to use it. The earliest year they could do this was 2024-25.
For example, obligations may commence on 6 April 2027, but a customer could sign up and volunteer for an earlier year e.g. 2026 -27 tax year.
For this group of customers none of the statutory MTD obligations apply so there can be no penalty e.g. for a ‘late’ quarterly update. Penalties will still be charged if the tax return deadline is missed as this is not an obligation created by the MTD legislation.
Further information on penalties and penalty reform can be found in Compliance Handbook.