Who can apply for an exemption

You will be able to apply for an exemption from using Making Tax Digital for Income Tax when the application process opens.

If you considerthink that you are digitally excluded, you can apply if:

• it’s not practical for you to use software to keep digital records or submit them — this may be due to your age, disability, location or another reason
• you are a practising member of a religious society (or order) whose beliefs are incompatible with using electronic communications or keeping electronic records

You’ll need to explain how these reasons apply to your own circumstances.

If HMRC has already confirmed you’re exempt from Making Tax Digital for VAT for one of these reasons, then you’ll not need to apply for an exemption for Making Tax Digital for Income Tax.

We’ll consider the information you send us and we’ll either tell you:

• that you’re exempt (we’ll let you know what you need to do next)
• why you’re not exempt and how you can appeal

If you’re not exemptexempt, you’ll need to sign up for Making Tax Digital for Income Tax.

If the reason for your exemption no longer applies you must tell HMRC within 3 months.

We’ll tell you how to apply for an exemption at a later date when the application process opens.

If you’re exempt from sending online VAT returns

If HMRC has previously confirmed you’re exempt from sending online returns for Making Tax Digital for VAT, you should contact us when the application process opens. This is so we can check some information with you about your circumstances.

If your circumstances have not changed, we’ll confirm that you’re also exempt from Making Tax Digital for Income Tax. If they have changed, you’ll need to apply for an exemption.

If your VAT exemption is due to your insolvency

You’re not exempt from Making Tax Digital for Income Tax if you or your business are subject to an insolvency procedure.

Who is automatically exempt 

You’re automatically exempt and cannot sign up for Making Tax Digital if you are a: 

• trustee, including a charitable trustee or a trustee of non-registered pension schemes 
• person that does not have a National Insurance number — this only applies for a tax year where you do not have a National Insurance number on 31 January before the start of that tax year 
• personal representative of someone who has died 
• Lloyd’s member, in relation to your underwriting business 
• non-resident company 

If you are automatically exempt, you will not need to apply for an exemption.