Find out if you can get an exemption from Making Tax Digital for Income Tax

WhatWho digitallyis excludedexempt means from Making Tax Digital for Income Tax 

BeingThere digitallyare excludeddifferent reasons why you may be exempt from Making Tax Digital for Income TaxTax. meansFor it’sexample, you could be exempt if you are digitally excluded.

If you are exempt, you will not reasonablehave to use Making Tax Digital for Income Tax but you must continue to usereport compatibleyour softwareincome to:  and gains in a Self Assessment tax return as normal.

Types of exemptions 

Exemptions for Making Tax Digital for Income Tax can either be: 

• automatic exemptions — these are given by HMRC based on the details in your 2024 to 2025 tax return and you do not need to contact HMRC or submit an application 
• exemptions you need to apply for — you should provide additional information with your application to tell us why you are exempt

keepThese digitalexemptions can records either be: 

• permanent — unless your circumstances change
• temporary — lasting until April 2027 at the earliest

Automatic exemptions 

Exemptions lasting until your circumstances change

sendYou quarterlywill updatesnot need to apply for the following exemptions. These exemptions apply permanently and mean you will not need to use Making Tax Digital for Income Tax unless your circumstances change.

If your qualifying income is £20,000 or submitless 

You are automatically exempt and do not need to use Making Tax Digital for Income Tax if your qualifying income is £20,000 or less. 

If you do not have a National Insurance number 

You are automatically exempt and cannot sign up for Making Tax Digital for Income Tax if you do not have a National Insurance number.

Other exemptions 

These exemptions are permanent and depend on the personal circumstances of the individual.

You are automatically exempt and do not need to use Making Tax Digital for Income Tax in your taxrole returnas a:

• person filing on behalf of non-resident company 
• trustee, including a charitable trustee or trustee of non-registered pension scheme 
• personal representative of someone who has died

If you gethave anyour exemption,own self-employment or property income away from these roles, you willmay notstill haveneed to use Making Tax Digital for Income Tax. Tax to report that income. You should work out your qualifying income for Making Tax Digital for Income Tax. 

If you thinkdid you’renot digitallyinclude excluded any of these in your 2024 to 2025 tax return but you reasonably expect to do so in the 2026 to 2027 tax return, read the section on ‘Exemptions you need to apply for’. 

Exemptions you need to apply for 

Digitally excluded exemption 

YouBeing candigitally applyexcluded from Making Tax Digital for anIncome exemptionTax ifmeans it’s not reasonable for you thinkto you’reuse digitallycompatible excluded.software to:

There

• keep aredigital differentrecords 
• send reasonsquarterly whyupdates or submit your tax return 

There are different reasons why this may apply to you, for example:example: 

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

You should consider if you are digitally excluded before you apply.

HMRC will not accept your application for an exemption if your only reason for applying is one of the following: following:

• you previously filed a paper return return
• you’reyou’re unfamiliar unfamiliar with accountancy software software
• you have a small number of digital records to create each tax year year
• it will take extra time or cost for you to sign up to and use Making Tax Digital for Income TaxTax 

There may be other reasons you may or may not be digitally excluded. HMRC will consider all applications on a case-by-case basis.basis. 

If

You you’recan apply exemptfor froman usingexemption for Making Tax Digital compatiblefor softwareIncome forTax VATif returns

YouIf shouldyou contacthave usan ifagent, HMRCfriend hasor previouslyfamily confirmedmember you’reapplying exempton fromyour sendingbehalf, VATthe returnsexemption will still be based on your personal circumstances. 

If you’re exempt from using Making Tax Digital compatible software becausefor you’reVAT digitally excluded.  

returns 

You should contact contact Self Assessment: general enquiries by by phone or in writing.writing  if HMRC previously confirmed you’re exempt from sending VAT returns using Making Tax Digital compatible software because you’re digitally excluded. 

You’llYou’ll need need to tell us:  us:

• your National Insurance number 
• your VAT registration number 
• the reasonreason you’re digitally you’re digitally excluded from sending VAT returns using Making Tax Digital compatible software, and if your circumstances have changedchanged 

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

If your VAT exemption is due to your insolvency

If your VAT exemption is becausebecause you’re going you’re going through an insolvency procedureprocedure and and you are signed up toto Making Making Tax Digital for Income Tax,Tax, you you will not be exempt and should continue to use the service.service. 

Apply

Exemptions that last until April 2027

If one of these exemptions applies to you, you do not need to sign up for Making Tax Digital for Income Tax until the 2027 to 2028 tax year at the earliest. 

If your qualifying income is more than £30,000, you will need to use Making Tax Digital for Income Tax from the 2027 to 2028 tax year onwards. 

You will need to apply for an exemption exemption if your 2024 to 2025 tax return did not show the following, but you reasonably expect your 2026 to 2027 tax return to include either: 

• a claim for averaging relief (for example, if you’re a farmer or creative artist) 
• a claim for qualifying care relief (such as, if you’re a foster carer or kinship carer) 
• the SA107 supplementary page to report income from trusts or estates 
• the SA109 supplementary page for the 2026 to 2027 tax year — you can read the reasons for using an SA109 in the ‘SA109 supplementary page’ section 

If you included any of these claims or pages in your 2024 to 2025 tax return, read the section on ‘Automatic exemptions that last until April 2027’. 

You should apply for an exemption if you have a good reason to think you’reyou digitallywill excluded,include findany of this information in your 2026 to 2027 tax return. 

If you are a non-UK resident foreign entertainer or sportsperson

You will need to apply for an exemption, even if you included this income in your 2024 to 2025 tax return. 

You can apply for an exemption for Making Tax Digital for Income Tax.

Exemptions that last beyond April 2027

You will need to apply for an exemption if your 2024 to 2025 tax return did not show the following, but you reasonably expect your 2026 to 2027 tax return to show that you are either: 

• an employed Minister of religion of any faith, religion or denomination using the SA102M supplementary page 
• someone who received or transferred Married Couple’s Allowance (for those born before 6 April 1935) 
• someone who received or transferred Blind Person’s Allowance 

If one of these exemptions applies to you, you will need to use Making Tax Digital for Income Tax in the future. We’ll set out howthe timeline for this at a later date. 

You should not apply for an exemption if you do not have a good reason to think you will include any of this information in your 2026 to 2027 tax return. 

You can apply for an exemption fromfor Making Tax Digital for Income Tax.