Making Tax Digital: Who is exempt?

Some people are exempt from Making Tax Digital (MTD). If you or your client is exempt, you’ll continue to submit a Self Assessment return as normal. You won’t need to use MTD software or submit quarterly updates.

There are two types of exemption from MTD:

Automatic exemptions
Exemptions need to apply for

Automatic exemptions

If you’re automatically exempt, you don’t need to contact HMRC or apply for anything.

Automatic exemptions apply if:

You have no qualifying income (either self-employment income or property letting income).
You have qualifying income below the relevant thresholds.
You don’t have a National Insurance number on 31 January, prior to the start of the tax year. (If you obtain a National Insurance number, it’s expected that the automatic exemption would cease).
You’re not mentally or physically capable and have either given enduring power of attorney or lasting power of attorney to someone to act on your behalf or have a deputy appointed by a UK court to act on your behalf.
You’re a Lloyds underwriter without any other qualifying income.
You’re a person filing on behalf of non-resident company, a trustee, including a charitable trustee or trustee of non-registered pension scheme or are a personal representative of someone who has died. (Only in your capacity in these roles, you must still follow the MTD rules for any personal qualifying income.)
You’re a foster carer or kinship carer who claimed qualifying care relief in your 2024/25 tax return and have no other qualifying income.

These exemptions all apply unless your circumstances change. You don’t need to contact HMRC to reapply or use MTD unless there’s a change to your circumstances.

Temporary automatic exemptions – until April 2027

Some automatic exemptions only apply for the first year of MTD (from 6 April 2026 until April 2027). So, for the first year of MTD you may be temporarily exempt until April 2027 if:

You claimed averaging relief (mostly applies to farmers or creative artists) in your 2024/25 tax return.
You claimed qualifying care relief in your 2024/25 tax return but have other forms of qualifying income.
You reported income from trusts or estates in your 2024/25 tax return using the SA107 supplementary page.
You declared completed the non-residence SA109 supplementary page in your 2024/25 tax return using and you believe you will do so again in the 2026/27 tax year.

If any of the above apply to you but were not declared in your 2024/25 tax return, you need to apply to HMRC for the exemption.

Temporary automatic exemptions – until 2029

Some automatic exemptions apply until the end of the current parliamentary term (expected to be 2029).

You are temporarily exempt if, in your 2024/25 tax return, you:

Were an employed Minister of religion of any faith, religion or denomination and completed the SA102M supplementary page in your 2024/25 tax return.
Received or transferred Married Couple’s Allowance in your 2024/25 tax return.
Received or transferred Blind Person’s Allowance in your 2024/25 tax return.
Were a Lloyd’s member with other qualifying income in your 2024/25 tax return.

If you did not declare any of the above in your 2024/25 tax return but expect to do so in your 2025/26 tax return, you must apply for an exemption.

Exemptions you must apply for

As mentioned above, if one of the temporary exemptions apply but were not declared in your 2024/25 tax return then you will need to make an application to HMRC for the exemption.

You must also apply for a digital exclusion exemption. This is where you cannot reasonably be expected to keep digital records due to circumstances such as age, health, disability, location (e.g. where broadband is not available/reliable) or a member of a religion which does not use technology for digital communications or record keeping.

HMRC will not accept a digital exclusion exemption solely because you’re unfamiliar with accounting software, have a small amount of records each year, MTD will be an additional cost to you, or that you want to keep using paper returns.

Digital exclusion exemptions are considered on a case-by-case basis by HMRC.

Non-resident foreign sportspersons and entertainers must apply for a temporary exemption until April 2027, even if they included this information in their 2024/25 tax return.

MTD for VAT exemptions

It’s important to be aware that if you are exempt from MTD for VAT on the basis of digital exclusion, this does not mean you’re automatically exempt from MTD for Income Tax.

You’ll need to contact HMRC by phone or in writing to apply.

How to apply for an exemption

You, a friend or family member (with authorisation), or your agent can apply for an exemption on your behalf.

If you’re applying yourself, or a friend/family member is applying on your behalf, you must phone or write to HMRC using the contact details in Self Assessment: general enquiries.

If you're an agent applying on behalf of a client, you must contact HMRC using the Agent Dedicated Line.

HMRC has detailed guidance on how to apply here.

When do you need to apply?

The timing depends on when you would otherwise need to start using MTD. If you need to use MTD from:

6 April 2026 — apply now.
6 April 2027 — apply from summer 2026 onwards.
6 April 2028 — apply from summer 2027 onwards.

When will you receive the outcome of your application?

HMRC aims to reply to all applications within 28 days. It may take longer if they need further information.

What if you disagree with the outcome of the application?

If HMRC deny your application for exemption, you can appeal. The decision letter will explain how to do this.

If you receive your decision letter on or after 1 April, you must appeal within 30 days of the date on the letter.
If you receive your decision letter before 1 April, you must appeal before 30 April.

If you’re required to start using MTD from 6 April 2026 and are awaiting an appeal outcome or a decision notice, you must start using MTD and continue until you receive an exemption.