MTD exemptions: who can be exempt and how the application works

Last checked 19 October 2026

This guide explains the exemption rules as GOV.UK sets them out, so you know which questions to ask. Only HMRC can decide an application.

Two kinds of exemption

GOV.UK’s exemptions guidance splits them into:

• automatic exemptions, which HMRC gives based on the information it holds, so you don’t need to contact HMRC or apply
• exemptions you apply for, where you give HMRC information about why you’re exempt

Each can be permanent (unless your circumstances change) or temporary, lasting until April 2027 at the earliest.

Automatic exemptions

According to GOV.UK, you’re automatically exempt, and don’t need to apply, if:

• your qualifying income is £20,000 or less
• you don’t have a National Insurance number before the start of the tax year (GOV.UK says you then can’t sign up)
• you’re submitting a return on behalf of a non-resident company (SA700) or a trust (SA900), or acting as the personal representative of someone who has died
• your 2024 to 2025 return included the Lloyd’s underwriters page (SA103L)
• your 2024 to 2025 return said you’re not physically or mentally capable of providing information to HMRC, and you have either given power of attorney to someone in the UK that is currently in place, or have a legally appointed deputy, controller or guardian

Partnerships don’t currently need to use MTD for Income Tax. GOV.UK says HMRC will set out a timeline for them later.

GOV.UK also lists automatic exemptions that last beyond April 2027 if your 2024 to 2025 return included the Ministers of religion page (SA102M), or declared Married Couple’s Allowance (for those born before 6 April 1935) or Blind Person’s Allowance. GOV.UK says these people will need to use MTD in the future, with a timeline to follow.

Temporary exemptions that end in April 2027

Some automatic exemptions only cover the 2026 to 2027 tax year. GOV.UK says they apply if your 2024 to 2025 return:

• claimed averaging relief as an individual (farmers, market gardeners and people who create literary or artistic works) on the SA103 page
• claimed qualifying care relief, for example as a foster carer or kinship carer
• included the SA107 page for income from trusts or estates
• included the SA109 residence page

There’s a matching set of exemptions you apply for, if those claims or pages weren’t on your 2024 to 2025 return but you reasonably expect them on your 2025 to 2026 or 2026 to 2027 return.

This matters for the April 2027 group. GOV.UK says that if one of these temporary exemptions applies, you’ll need to use MTD from the 2027 to 2028 tax year onwards if your qualifying income is above £30,000 in 2025 to 2026.

The digitally excluded exemption

This is the one most people mean when they ask about exemptions. GOV.UK says being digitally excluded means it isn’t reasonable for you to use compatible software to keep digital records or to send quarterly updates or your tax return.

GOV.UK gives examples of why this might apply:

• your age, a health condition or a disability stops you using a computer, tablet or smartphone to keep digital records or send them to HMRC
• you’re a practising member of a religious society or order whose beliefs are incompatible with using digital communications or keeping digital records, and you don’t use a computer, tablet or smartphone for business or personal use
• you can’t get internet access at home or work because of your location, and can’t get access at a suitable alternative location

Age appears as one example, but GOV.UK doesn’t list an age at which you’re automatically exempt.

GOV.UK also lists reasons that, on their own, won’t be accepted:

• you previously filed a paper return
• you’re unfamiliar with accountancy software
• you have a small number of digital records each year
• signing up and using MTD will take extra time or cost

HMRC considers every application case by case.

If you have an accountant who keeps digital records and submits them for you using compatible software, GOV.UK says they may be able to meet the MTD requirements on your behalf, so you may not need to apply.

How to apply

GOV.UK’s Apply for an exemption page explains the process.

1. Check first. Read the exemptions guidance to see whether an exemption may fit your circumstances.
2. Gather the details. You’ll need your National Insurance number, name and address, and an explanation of why you think you should be exempt, with any supporting information. For a digitally excluded application, GOV.UK also asks how you currently send your tax return (including if someone helps), the reason you’re digitally excluded, whether you have an agent and what they do, and any additional needs.
3. Contact HMRC. You apply by phone or in writing, using the contact details on GOV.UK’s Self Assessment: general enquiries page. If you write, GOV.UK gives the exact subject titles to put on your letter: one for a digitally excluded application and one for any other exemption.
4. Wait for HMRC’s letter. GOV.UK says HMRC aims to respond within 28 calendar days, and it may take longer if it needs more information.

If you think several exemptions apply, GOV.UK says to send one application explaining each. A friend or family member can apply for you with your authorisation, and an authorised agent can apply too. Either way, the decision is based on your circumstances.

If a health condition or personal circumstances make it hard to contact HMRC, GOV.UK explains how to get help from HMRC if you need extra support.

When to apply

GOV.UK says to apply before you need to use MTD. If you need to use it from 6 April 2027, you can apply now. If you’ll need it from 6 April 2028, GOV.UK says to apply from summer 2027 onwards.

While you wait, GOV.UK says to keep your records as you normally do for Self Assessment and read the MTD step-by-step guidance, so you’re ready if your application isn’t accepted.

If HMRC says no

The decision letter explains why and how to appeal. GOV.UK says you can appeal up to 30 days after the date on the letter, in writing, to the address in the letter.

Exempt from MTD for VAT already?

If HMRC previously confirmed you’re digitally excluded from MTD for VAT, GOV.UK says to contact Self Assessment general enquiries with your National Insurance number, VAT registration number and the reason, and say whether your circumstances have changed.

Frequently asked questions

Am I exempt from MTD if I’m over a certain age?

GOV.UK doesn’t list an automatic age exemption. Age is one example of why someone might be digitally excluded, which needs an application. HMRC decides each case.

Do I still need to file a tax return if I’m exempt?

Yes. GOV.UK says that if you’re exempt you must continue to report your income and gains in a Self Assessment tax return as normal.

Is “I’m not good with computers” enough?

GOV.UK says HMRC won’t accept an application if your only reason is being unfamiliar with accountancy software. Other circumstances may be relevant, and HMRC considers each case.

How long does HMRC take to decide?

GOV.UK says HMRC aims to respond within 28 calendar days of receiving your application.

Can someone apply for me?

Yes. GOV.UK says an authorised agent, or a friend or family member with your authorisation, can apply on your behalf.

Do penalties change if I become exempt?

GOV.UK says that if you become exempt in the 2027 to 2028 tax year you remain under the new penalties, with a 2-point threshold instead of 4. See our MTD penalties guide.

Sources

All checked on GOV.UK on 19 October 2026.

• Find out if you can get an exemption from Making Tax Digital for Income Tax (updated 28 May 2026)
• Apply for an exemption from Making Tax Digital for Income Tax (updated 17 August 2026)
• Find out if and when you need to use Making Tax Digital for Income Tax (updated 26 March 2026)
• Penalties for Making Tax Digital for Income Tax (updated 30 March 2026)
• Self Assessment: general enquiries
• Get help from HMRC if you need extra support