Some people are automatically exempt and others can apply, including on digital-exclusion grounds. Check the actual HMRC conditions and keep the decision. An exemption from MTD does not automatically remove ordinary tax-return and payment duties.
This page owns “who can be exempt?” If your issue is “HMRC signed me up and I think that is wrong,” use that dispute guide instead.
Two shapes of exemption
GOV.UK groups exemptions as:
- Automatic: HMRC grants them from information it already holds, so you do not submit an application
- Applied for: you (or an authorised agent, friend or family member) must contact HMRC and explain why
They can also be permanent (unless circumstances change) or temporary (often until April 2027 at the earliest).
Automatic examples (not a full catalogue)
Current GOV.UK guidance includes, among others:
- Qualifying income of £20,000 or less: automatically exempt from MTD for Income Tax
- No National Insurance number before the start of the tax year: automatically exempt and cannot sign up
- Partnerships: partnerships do not currently need to use MTD for Income Tax (HMRC will set that timeline later)
- Certain role-based cases: for example some trust returns (SA900), non-resident company SA700 filings, and acting only as a personal representative of someone who has died (your own trade/property income is assessed separately)
Some people also get automatic temporary or longer exemptions because of specific claims or supplementary pages on their 2024 to 2025 return (for example averaging relief, qualifying care relief, or certain Blind Person’s Allowance / minister of religion situations). Those rules are detailed and change with your return content, so use GOV.UK’s exemption guidance as the source of truth rather than a blog paraphrase. If you are near a threshold rather than an exemption, start with qualifying income and the MTD checker.
Digital exclusion: what it is and is not
Being digitally excluded means it is not reasonable for you to use compatible software to keep digital records and send quarterly updates or the tax return. GOV.UK examples include age, health or disability that stops you using a computer, tablet or smartphone for this; certain religious beliefs incompatible with digital records where you also do not use those devices for personal or business use; or no workable internet access at home or business (and no suitable alternative).
HMRC says it will not accept an application if your only reason is that you previously filed on paper, you are unfamiliar with accountancy software, you have few digital records each year, or MTD will take extra time or cost. Disliking software is not digital exclusion.
If an agent already keeps digital records and submits for you with compatible software, speak to them first. You may not need a digitally excluded exemption.
Applying, waiting, and changing circumstances
Applications go by phone or letter to Self Assessment general enquiries (agents use the agent line), with the subject titles GOV.UK publishes for digitally excluded or other exemption applications. HMRC aims to respond within 28 calendar days.
Already signed up and applying because circumstances changed? GOV.UK says you should continue using Making Tax Digital for Income Tax while you wait for a decision. An application is not a pause.
If your circumstances later change after an exemption, you may need to apply again or start using MTD when HMRC says you must. Previously digitally excluded from MTD for VAT still needs a separate Income Tax confirmation with HMRC. It does not transfer silently.
Practical next step
Read GOV.UK’s exemption pages for your exact case, then use the MTD checker as a planning prompt. If you are not exempt and want accountant-led help rather than DIY software alone, see the Making Tax Digital service. TaxSimba does not grant exemptions and does not claim HMRC approval. Only HMRC can confirm an exemption.
Check temporary SA109 exemptions for 2026/27
HMRC lists a temporary 2026/27 exemption where the 2024/25 return included SA109 residence pages. If those pages were not included before but are reasonably expected for 2025/26 or 2026/27, an application may be needed. Relevant cases include non-residence, split-year treatment and certain FIG or overseas-workday-relief claims. Check the exact conditions and expiry; do not infer that foreign income alone creates an exemption.
Describe the actual barrier to digital use
Illustrative preparation example.
If a disability or lack of usable connectivity prevents digital compliance, describe the practical effect and the support already explored. Keep the application and HMRC decision. A statement that software feels difficult gives less useful evidence than the specific barrier.
Check: What prevents compliance, what evidence supports it and what has HMRC decided?
| Check | Practical action |
|---|---|
| Automatic exemption or application? | Check the exact current category rather than assuming every exemption follows the same process. |
| What makes digital use unreasonable? | Explain the practical circumstances and alternatives, with appropriate supporting evidence. |
| Are you already signed up? | Follow HMRC guidance on continuing obligations while awaiting a decision and keep the response. |
Does a VAT exemption automatically cover Income Tax?
Do not assume it does. Check the separate MTD for Income Tax requirements and obtain the relevant HMRC confirmation.
Can unfamiliarity with software alone qualify?
HMRC does not normally accept unfamiliarity, additional cost or extra time alone as digital exclusion. Explain any actual qualifying barrier instead.
Download a checklist for this guide
- Identify the exact exemption category you are checking.
- Describe the practical digital barrier and alternatives.
- List relevant supporting documents.
- Record application date and existing reporting obligations.
- Retain HMRC's decision and any review or appeal instructions.