Exemptions for Making Tax Digital for Income Tax

You can find out if you can get exemption from HMRC Making Tax Digital for Income Tax from the link https://www.gov.uk/guidance/find-out-if-you-can-get-an-exemption-from-making-tax-digital-for-income-tax which contains the full list of exemptions.

This guidance offers clear and comprehensive detail on MTD exemptions, helping customers and agents to move forward ahead of April 2026. As with all MTD guidance, we will continue to iterate to ensure we are describing the policy in the simplest way for customers and agents. 

HMRC have advised that if you want to write to them  to request an exemption, you should use one of the following subject titles on your letter to avoid delays:

• Making Tax Digital for Income Tax — digitally excluded application’ if applying for a digitally excluded exemption
• Making Tax Digital for Income Tax — exemption application’ if applying for any other exemption

You can apply for the exemption from the HMRC’s webpage https://www.gov.uk/guidance/find-out-if-you-can-get-an-exemption-from-making-tax-digital-for-income-tax

Who is exempt from Making Tax Digital for Income Tax?

You may be exempt if:

• You are digitally excluded
• Your qualifying income is £20,000 or less
• You do not have a National Insurance number
• You fall under certain roles or special categories(e.g., trusts, non-resident companies)

Do exempt individuals still need to file tax returns?

Yes. If you are exempt from MTD, you must continue submitting your Self Assessment tax return as usual.

What types of exemptions exist?

Exemptions can be:

• Automatic (no application required)
• Application-based (you must apply to HMRC)

They can also be:

• Permanent (unless circumstances change)
• Temporary (generally until April 2027)

What are automatic exemptions?

You are automatically exempt in cases such as:

• Being in a partnership
• Having income ≤ £20,000
• Not having a National Insurance number
• Acting for certain entities (e.g., trusts, deceased estates)
• Reporting specific claims or pages in your tax return (e.g., SA103L, SA107, SA109)

What is a digitally excluded exemption?

You may qualify if it is not reasonable for you to use digital tools due to:

• Age, disability, or health
• Religious beliefs
• Lack of internet access

 Are there temporary automatic exemptions?

Yes. You may be exempt until April 2027 if your recent tax return includes:

• Averaging relief
• Qualifying care relief
• Trust or overseas-related pages (e.g., SA107, SA109)

Who qualifies for exemptions beyond April 2027?

You may remain exempt longer if your tax return includes:

• Minister of religion (SA102M)
• Lloyd’s member income (SA103L)
• Married Couple’s Allowance (pre-1935 birth)
• Blind Person’s Allowance

What does NOT qualify for digital exclusion?

You will not qualify if your only reasons are:

• Not being familiar with software
• Having few records
• Extra time or cost involved
• Previously submitting paper returns

How do I apply for an exemption?

You must apply if your exemption is not automatic, especially for:

• Digital exclusion
• Expected future claims (e.g., averaging relief, SA109 pages)

Applications are assessed case-by-case by HMRC.

What if I’m already exempt from MTD for VAT?

If HMRC has confirmed your VAT digital exclusion, you may also qualify for MTD exemption for Income Tax—but you must contact HMRC to confirm.

Do partnerships need to use MTD?

Currently, partnerships are automatically exempt, but this may change in the future.

When will exemption rules change?

Some exemptions end in April 2027, after which you may need to comply with MTD if your qualifying income exceeds £30,000

Can exemptions change?

Yes. Exemptions are subject to:

• Changes in your circumstances
• Updated HMRC rules or timelines