Consequences of not registering
2 min read
HMRC identifies Phase 1 taxpayers from the 2024/25 Self Assessment return. If you meet the criteria, the legal obligation applies whether you received a letter from HMRC or not.
Failing to sign up is treated as a late submission
HMRC will not auto-enrol you. If you ignore the requirement, you will begin accruing penalty points once the first quarterly deadline passes.
If you amend your 2024/25 return after MTD has started so that your qualifying income drops to £50,000 or less, you remain in MTD for 2026/27. Conversely, an amendment after the start date that raises your income above £50,000 does not drag you in for that year.
Related Articles
Was this article helpful?
Ready to comply with MTD?
Abridge makes it easy to submit your spreadsheet to HMRC.