Not immediately, and not on your own say-so. Once you are in MTD you stay in until HMRC agrees you can leave, and the test looks at a sustained fall rather than one quiet year. So a trader who has a poor year does not drop out of MTD for that year — you keep filing while the position is assessed. It is worth being clear-eyed here: the thresholds step down to £30,000 in April 2027 and £20,000 in April 2028, so income that falls below today’s £50,000 line will very often still be above the line that applies by the time an exit would take effect. In most cases we advise clients to keep the setup running, because leaving and re-joining costs more than staying.