Quick answer
Yes, but not straight away. You can opt out if your qualifying income is below the threshold for three tax years in a row. You then choose the opt-out option in your HMRC online services account. You still file a Self Assessment tax return as normal.
Key facts
Below the threshold for 3 tax years in a row
Opt out in your HMRC online services account
No more digital records or quarterly updates after that
You still file a Self Assessment return
How HMRC checks
HMRC looks at your qualifying income when you send the fourth quarterly update for the third year. If you’ve been below the threshold for all three years, you can opt out.
What happens when you opt out
You stop creating digital records and sending quarterly updates.
Any quarterly updates already sent for the year you opt out are deleted.
You file a normal Self Assessment return.
Other ways out
If you stop all your self-employment and property income, or you become exempt, you also stop using MTD. See stopping a business and how to apply for an exemption.