Who is exempt from Making Tax Digital for Income Tax

GOV.UK lists a set of exemptions that apply without any application and are permanent unless your circumstances change. You are exempt if:

• your qualifying income is £20,000 or less
• you did not have a National Insurance number before the start of the tax year
• you are a non-resident company filing an SA700, a trust filing an SA900, or the personal representative of someone who has died
• you are a Lloyd's member reporting underwriting business, based on your 2024 to 2025 return
• you are not physically or mentally capable of using the service and have given someone in the UK power of attorney, or have a legally appointed deputy, controller or guardian, currently in place

Partnerships are also outside the rules for now, and HMRC has said it will set a timeline for them later. Our guide to qualifying income explains how the £20,000 figure is worked out.

Some exemptions depend on what was on your 2024 to 2025 return. HMRC gives these automatically too, and they split into two groups: those lasting until April 2027 at the earliest, and those lasting beyond it.

If none of the automatic rules fit, you can apply to be treated as digitally excluded when it is not reasonable for you to use compatible software. GOV.UK gives examples: your age, a health condition or disability stops you using a computer, tablet or smartphone; your religious beliefs are incompatible with digital communications or records and you do not use a computer, tablet or smartphone for business or personal use; or you cannot get internet access at home or at your business because of your location.

HMRC is just as clear about what it will not accept. An application will fail if the only reason is that you have filed a paper return before, that you are unfamiliar with accountancy software, that you have a small number of digital records to create each year, or that signing up will take extra time or cost money. Applications are considered on a case-by-case basis, so a short, honest account of your circumstances matters more than a long one.

There is no online form. GOV.UK says you must either call or write to HMRC using the contact details on its Self Assessment general enquiries page, and agents should use the Agent Dedicated Line. If you write, GOV.UK asks you to head the letter as a Making Tax Digital for Income Tax digitally excluded application. Give:

• your National Insurance number, name and address
• why you think you should be exempt
• how you currently file your tax return
• whether you have an agent, and any additional needs

HMRC says it will aim to respond within 28 calendar days of receiving your application, though it may take longer if it needs more information. If you have already signed up and your circumstances have changed, keep using Making Tax Digital while you wait. If HMRC refuses, you can appeal in writing up to 30 days after the date on the letter.

GOV.UK says that if you are exempt you must continue to report your income and gains in a Self Assessment return as normal, and the usual payment dates still apply. If your 2025 to 2026 qualifying income puts you over the £30,000 threshold and none of the rules above apply, you will need to join from 6 April 2027. Temporary exemptions in particular are worth diarising, since some last only until April 2027 at the earliest. Our Making Tax Digital checklist covers what to do if you are not exempt, and the self assessment deadlines guide covers the return you will still be sending.

This page is general information, not tax advice. The Making Tax Digital service page explains where an accountant can help, and if you would like one, we read every enquiry and, where we can, will put you in touch with a local accountant. See how it works.