Who is exempt from Making Tax Digital and how to apply
Some people are automatically exempt from Making Tax Digital (MTD) for Income Tax, for example if their qualifying income is £20,000 or less, they have no National Insurance number, or they file for a trust. Others, including people who are digitally excluded because of age, disability, location or religious beliefs, must apply to HMRC by phone or letter, and everyone who is exempt still sends a normal Self Assessment return.
Two kinds of exemption
HMRC gives automatic exemptions using information it already holds, so you do not need to contact it. Other exemptions only apply if you apply and explain why.
Exemptions are either permanent, unless your circumstances change, or temporary, lasting until April 2027 at the earliest.
Who is automatically exempt
These automatic exemptions are permanent unless your circumstances change:
- Your qualifying income is £20,000 or less
- You do not have a National Insurance number before the tax year starts. For example, if you get one on 30 April 2026, you are exempt for 2026 to 2027
- You file for a non-resident company (SA700) or a trust (SA900), including charitable trusts and trusts of non-registered pension schemes
- You act as the personal representative of someone who has died. Their outstanding returns must still be filed, and your own income may still bring you into MTD
- Your 2024 to 2025 return included the SA103L page as a Lloyd's member for your underwriting business
- Your 2024 to 2025 return said you are not physically or mentally able to give HMRC information, and you have a UK power of attorney in place or a legally appointed deputy, controller or guardian
Partnerships do not need to use MTD for now. HMRC says it will set out a timeline later.
Automatic exemptions for 2026 to 2027 only
You do not need MTD for 2026 to 2027 if your 2024 to 2025 return did any of these:
- Claimed averaging relief as an individual on the SA103 page, as a farmer, market gardener or creator of literary or artistic work
- Claimed qualifying care relief, for example as a foster or kinship carer
- Included the SA107 page for income from trusts or estates
- Included the SA109 page, which covers residence and related claims
From 2027 to 2028, you will need MTD if your qualifying income was over £30,000 in 2025 to 2026.
Automatic exemptions lasting beyond April 2027
You are also automatically exempt if your 2024 to 2025 return included any of these:
- The SA102M page, as a minister of any faith, religion or denomination
- The SA103L page, as a Lloyd's member with self-employment or property income
- Married Couple's Allowance received or transferred (only available to people born before 6 April 1935)
- Blind Person's Allowance received or transferred
HMRC says this group will need MTD in future, with a timeline to follow.
Is there an age exemption?
There is no exemption for age alone. Married Couple's Allowance, which only people born before 6 April 1935 can claim, gives an automatic exemption.
Separately, if your age, a health condition or a disability stops you using a computer, tablet or smartphone for your records, you can apply as digitally excluded.
Digitally excluded: the exemption you apply for
Being digitally excluded means it is not reasonable for you to use compatible software to keep digital records, send quarterly updates or file your return. GOV.UK gives three examples:
- Age, health or disability: it stops you using a computer, tablet or smartphone to keep or send records
- Religious beliefs: you are a practising member of a religious society or order whose beliefs conflict with digital communication or record keeping, and you do not use a computer, tablet or smartphone for business or personal use
- Location: you cannot get internet access at home or at your business, and cannot get it at a suitable alternative place
HMRC will not accept an application if your only reason is that you filed on paper before, you are not familiar with accounting software, you have few records, or it will cost you time or money. Each case is looked at individually.
If an agent keeps and sends your digital records for you, they can meet MTD on your behalf, so you may not need this exemption. See do I need an accountant for MTD.
Other exemptions you must apply for
If your 2024 to 2025 return did not include them, but you reasonably expect your 2025 to 2026 or 2026 to 2027 return to include averaging relief on the SA103, qualifying care relief, the SA107 or the SA109, you can apply for an exemption lasting until April 2027. Partners claiming averaging relief on the SA104 page also need to apply.
If you expect to claim Married Couple's Allowance or Blind Person's Allowance, or to include the SA102M page, you can apply for an exemption lasting beyond April 2027. HMRC says you should only apply if you have good reason to expect this.
If you are already exempt from MTD for VAT as digitally excluded, contact HMRC with your National Insurance number, VAT number and reason. If nothing has changed, it will confirm your Income Tax exemption. A VAT exemption due to insolvency does not carry across.
How to apply
Phone or write to HMRC using the Self Assessment general enquiries contact details. Agents use the Agent Dedicated Line. If you write, HMRC asks you to head the letter 'Making Tax Digital for Income Tax' followed by 'digitally excluded application' or, for any other exemption, 'exemption application'. You will need:
- Your National Insurance number, name and address
- Why you think you should be exempt, with any supporting information
- For digital exclusion: how you file now and who helps, why you are excluded, whether you have an agent and what they do, and any extra support you need
Send one application covering every exemption you think applies. An authorised agent, or a friend or relative with your permission, can apply for you, but the decision is based on your circumstances.
For 6 April 2026 or 6 April 2027 you can apply now; for 6 April 2028, apply from summer 2027. If you are already signed up, keep using MTD while you wait.
After you apply
HMRC aims to reply within 28 calendar days, or longer if it needs more information. Its letter will say what type of exemption you have and how long it lasts.
If you are refused, you can appeal in writing within 30 days of the date on the letter. Keep your records as normal and prepare to use MTD in case the appeal fails.
What you file instead
Exempt people send a normal Self Assessment return: paper by 31 October or online by 31 January after the tax year. While you are exempt during 2026 to 2027, the current Self Assessment penalties apply.
If you become exempt in 2027 to 2028, HMRC says you stay on the new points-based penalties, with a threshold of 2 points. Our MTD penalties guide explains how points work. To see whether you need MTD at all, try our free MTD checker.
Common questions
Who is automatically exempt from MTD?
People with qualifying income of £20,000 or less, people without a National Insurance number, trusts, non-resident companies, personal representatives and some others such as Lloyd's members and ministers of religion. Partnerships are not yet required to use MTD.
Is there an age exemption for MTD?
Not for age alone. People who claim Married Couple's Allowance (born before 6 April 1935) are automatically exempt, and anyone whose age stops them using digital devices can apply as digitally excluded.
Can I get an MTD exemption for religious reasons?
Yes, by applying as digitally excluded. You must be a practising member of a religious society or order whose beliefs are incompatible with digital records or communication, and not use a computer, tablet or smartphone for business or personal use.
How do I apply for an MTD for Income Tax exemption with HMRC?
Call or write to HMRC's Self Assessment general enquiries line with your National Insurance number, name, address and reasons. HMRC aims to reply within 28 calendar days.
Do I still file a tax return if I'm exempt from MTD?
Yes. Being exempt means you do not need software or quarterly updates, but you still report your income and gains on a Self Assessment return as normal.
Sources: GOV.UK: Find out if you can get an exemption from Making Tax Digital for Income Tax; GOV.UK: Apply for an exemption from Making Tax Digital for Income Tax; GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax; GOV.UK: Penalties for Making Tax Digital for Income Tax; GOV.UK: Self Assessment tax returns; GOV.UK: Self Assessment: general enquiries. This is general information, not tax advice; check GOV.UK or an accountant for your situation.
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