Guidance

ApplyFind forout if you can get an exemption from Making Tax Digital for Income Tax

FindCheck outif howyou toget apply for an exemption from Making Tax Digital for Income Tax.Tax and how it applies.

Who is exempt from Making Tax Digital for Income TaxTax 

There are different reasons why you may be exempt from Making Tax Digital for Income Tax. For example, you could be exempt if you are digitally excluded.

If you are exempt, you will not have to use Making Tax Digital for IncomeIncome Tax but Tax but you must continue to report your income andand gains gains in aa Self SelfAssessment tax Assessment tax return as normal.

Types of exemptions 

IfExemptions youfor areMaking notTax automaticallyDigital exempt,for youIncome needTax tocan applyeither forbe: 

  • automatic anexemptions exemption these are given by contactingHMRC based HMRC.on Youthe candetails usein thisyour guidance2024 to apply2025 fortax a:

    • temporaryreturn exemptionand untilyou atdo leastnot Aprilneed 2027to contact HMRC or submit an application 
    • digitallyexemptions excludedyou exemptionneed whichto mayapply befor permanent dependingyou onshould yourprovide additional information circumstances

    Beforewith youyour apply,application youto shouldtell considerus yourwhy circumstancesyou andare findexempt

These outexemptions can ifeither yoube: 

WhoAutomatic can applyexemptions 

You

Exemptions canlasting applyuntil foryour ancircumstances exemption yourself.

change

You canwill alsonot need to apply for anthe exemptionfollowing onexemptions. These behalfexemptions apply ofpermanently someoneand elsemean you ifwill younot areneed either:

  • anto authoriseduse agent
  • aMaking friendTax orDigital familyfor memberIncome withTax theirunless authorisation
your circumstances change.

If youyour havequalifying anincome agent,is friend£20,000 or familyless 

You memberare applyingautomatically onexempt yourand behalf,do thenot exemptionneed willto stilluse beMaking basedTax onDigital yourfor personalIncome circumstances.

IfTax yourif agentyour qualifying usesincome is compatible£20,000 softwareor toless. 

If keepyou do digitalnot recordshave anda National submitsInsurance themnumber 

You toare HMRC,automatically theyexempt will beand ablecannot tosign meetup the requirements for Making Tax Digital for Income Tax onif youryou behalf.

Youdo shouldnot speakhave toa yourNational agentInsurance aboutnumber.

Other this,exemptions 

These asexemptions youare maypermanent notand needdepend toon applythe personal circumstances forof athe individual.

You digitallyare excludedautomatically exemption.

Ifexempt youand aredo actingnot onneed behalfto ofuse someoneMaking else

IfTax you’reDigital anfor agent,Income youTax must:in your role as a:

If you’reyou ahave friendyour own self-employment or familyproperty member,income away from these roles, you may still need authorisationto fromuse theMaking personTax you’reDigital applyingfor onIncome behalfTax ofto beforereport youthat apply. Thisincome. canYou beshould work either:

  • byout writingyour toqualifying HMRCincome for authorisationMaking Tax youDigital willfor needIncome toTax

    You includeare thealso signatureautomatically exempt if you are any of the personfollowing:

    • a youLloyd’s aremember submitting a actingtax onreturn behalfin ofrelation to your underwriting business
    • by

      not phoningphysically HMRCor mentally thecapable personand youhave areeither:

    This

    Automatic shouldexemptions bethat givenlast usinguntil theApril contact2027 

    You detailsdo in Selfnot Assessment:need generalto use Making enquiries.

    BeforeTax youDigital applyfor onIncome behalfTax ofuntil the someone2027 else,to you2028 shouldtax makeyear at surethe youearliest, fullyif in your understand2024 theirto circumstances.

    When2025 totax apply

    return you: 

    You

    • claimed shouldaveraging applyrelief (for beforeexample, you,if you’re ora thefarmer personor creative youartist) 
    • claimed arequalifying applyingcare onrelief (such behalfas, of,if you’re a foster needscarer or tokinship usecarer)
    • included Makingthe TaxSA107 Digitalsupplementary page forto Incomereport income from Tax.

      Iftrusts youor areestates 

    • included applyingthe forSA109 ansupplementary exemptionpage becauseand you thinkthink it’s likely you’ll include youit areagain digitallyfor excluded,the you2026 shouldto apply2027 fortax anyear 

    If exemptionone basedof onthese whenexemptions youapplies, you do not need to usecontact Makingor Taxapply Digitalto for Income Tax.HMRC. 

    IfYou will you need to use Making Tax DigitalDigital for for Income TaxTax from from:

    • 6the April2027 2026to 2028 youtax canyear applyonwards if now
    • 6your Aprilqualifying 2027income is youabove should£30,000 applyin fromthe summer2025 to 2026 onwards
    • 6tax Aprilyear. 

      If 2028 you shoulddid applynot frominclude summerany 2027of onwards

    Ifthese claims you’veor pages in alreadyyour signed2024 upto and2025 yourtax circumstancesreturn, havebut changed,you reasonably youexpect to shoulddo applyso forin anyour exemption2026 and continue to use2027 Makingtax Taxreturn, Digitalread forthe Incomesection Taxon whilst‘Exemptions you waitneed to hearapply from us.for.’

    If

    SA109 you’vesupplementary signedpage

    You upshould voluntarilyinclude andthe thinkSA109 you’vesupplementary becomepage exempt,in findyour out2026 what to do2027 iftax yourreturn circumstancesif you’re either a: 

    If

    Automatic youexemptions arethat applyinglast forbeyond aApril digitally2027 

    You excludedare exemption,automatically youexempt if alsoyou submitted your need2024 to tell2025 us:tax return as either:

    Applying

    If onone behalf of someonethese else

    Ifexemptions youapplies, you do not areneed applyingto forcontact anHMRC exemptionor onapply behalffor ofan someoneexemption.

    You else, you will need to provideuse theirMaking details.Tax YouDigital shouldfor ensureIncome youTax fullyin understandthe theirfuture. We’ll set circumstances.

    Toout applythe ontimeline theirfor behalf,this at you’lla need:later date. 

    • to

      If tell us how you aredid connectednot toinclude theany applicantof (forthese example,in ifyour you’re2024 theirto agent2025 ortax areturn personalbut representative)

    • theiryou reasonably Nationalexpect to Insurancedo number
    • theirso namein andthe address
    • 2026 to explain2027 whytax youreturn, thinkread the applicantsection shouldon be‘Exemptions exemptyou fromneed Makingto Taxapply Digitalfor’. 

      Exemptions you forneed Incometo Tax,apply includingfor 

      Digitally excluded exemption 

      Being anydigitally additionalexcluded informationfrom toMaking supportTax theirDigital application

    Wefor mayIncome requestTax additionalmeans it’s not informationreasonable tofor makeyou ato decisionuse oncompatible yoursoftware application.to:

    If

    • keep youdigital arerecords 
    • send applyingquarterly forupdates aor submit your digitallytax excludedreturn 

    There exemptionare different forreasons why someonethis else,may youapply will also need to tellyou, us:for example: 

    • detailsyour ofage, howhealth theycondition currentlyor submitdisability stops you from using a taxcomputer, tablet or returnsmartphone (includingto ifkeep someonedigital elserecords helps)or submit them to HMRC 
    • ifyou’re a practising theymember haveof ana agentreligious (forsociety example,or anorder accountant)whose andbeliefs whatare theincompatible agentwith willusing do
    • aboutdigital anycommunications additionalor needskeeping sodigital werecords, canand provideyou thedo rightnot support

    Howuse toa apply

    Tocomputer, applytablet foror ansmartphone exemption for yourselfbusiness or onpersonal behalfuse

  • you ofcannot someoneget else,internet youaccess mustat eitheryour callhome or writebusiness to HMRCbecause usingof theyour contactlocation, detailsand in Selfcannot Assessment:get generalaccess enquiries.

    at a suitable alternative location

AgentsHMRC applyingwill onnot behalfaccept ofyour someoneapplication elsefor shouldan useexemption theif contactyour detailsonly inreason Agentfor Dedicatedapplying Line: Selfis Assessment orone PAYEof forthe individuals.following:

If

  • you writepreviously tofiled us,a paper return
  • you’re unfamiliar with accountancy software
  • you shouldhave usea onesmall number of thedigital followingrecords subjectto titlescreate oneach yourtax letter:

      year
    • ‘Makingit Taxwill Digitaltake forextra Incometime Taxor cost digitallyfor excludedyou application’to ifsign applyingup forto aand digitallyuse excludedMaking exemption
    • ‘Making Tax Digital for Income TaxTax 

    There may exemptionbe application’other ifreasons applyingyou formay anyor othermay exemption

Ifnot abe healthdigitally conditionexcluded. orHMRC personalwill circumstancesconsider makeall itapplications difficulton toa contactcase-by-case us,basis. 

You youcan apply canfor findan outexemption howfor to getMaking helpTax fromDigital HMRCfor Income Tax if you needthink extrayou support.are digitally excluded. 

After

If you have applied

HMRCan willagent, aimfriend toor respondfamily withinmember 28applying calendaron days of receiving your application.behalf, Itthe mayexemption takewill longerstill ifbe webased needon youyour topersonal provide more information.circumstances. 

You

If you’re exempt shouldfrom readusing about the steps for Making Tax Digital forcompatible Incomesoftware Taxfor VAT thisreturns 

You willshould helpcontact Self youAssessment: preparegeneral toenquiries by signphone upor andin usewriting it, if yourHMRC applicationpreviously isconfirmed you’re exempt notfrom accepted.sending YouVAT mustreturns alsousing continueMaking keepingTax recordsDigital orcompatible supportingsoftware documentsbecause you’re digitally likeexcluded. 

You’ll need youto normallytell do for Self Assessment.us:

When

  • your reviewingNational Insurance number 
  • your application,VAT weregistration may:

      number 
    • verify the informationreason you’re digitally youexcluded havefrom providedsending toVAT confirmreturns itusing isMaking accurate
    • askTax youDigital forcompatible moresoftware, information,and if weyour needcircumstances anyhave changed 

    We’llIf thenyour sendcircumstances youhave not achanged, we’ll confirm letterthat you’re also confirmingexempt iffrom yourMaking applicationTax Digital for anIncome exemptionTax. hasIf beenthey acceptedhave orchanged, you’ll need not,to andapply whatfor youan needexemption

    If toyour doVAT next.

    exemption is due to insolvency 

    If youyour receivedVAT aexemption decisionis beforebecause you’re going 1through Aprilan 2026,insolvency itprocedure and tookyou legalare effectsigned fromup 1to Making AprilTax 2026.

    IfDigital HMRCfor acceptsIncome yourTax, you application

    Thewill letternot willbe explainexempt theand typeshould ofcontinue exemptionto anduse howthe longservice. 

    Exemptions that itlast until willApril last.

    2027

    If youone areof exemptthese untilexemptions Aprilapplies 2027,to you, you willdo not need to sign up andfor use Making Tax Digital for Income Tax until the 2027 to 2028 tax yearyear at at the earliest.earliest. 

    WhilstIf your qualifying income is more than £30,000, you arewill exemptneed duringto use Making Tax Digital for Income Tax from the 20262027 to 20272028 tax year,year youonwards. 

    You will remainneed onto theapply currentfor latean paymentexemption andif lateyour filing2024 penaltiesto for2025 Selftax Assessment.

    Youreturn candid findnot outshow morethe informationfollowing, onbut penaltiesyou reasonably forexpect your Making2026 Taxto Digital2027 fortax Incomereturn Tax.to include either: 

    If
    • a HMRCclaim doesfor notaveraging acceptrelief (for yourexample, applicationif you’re anda youfarmer disagreeor withcreative theartist) 
    • a decision

    Ifclaim yourfor qualifying applicationcare relief (such isas, notif accepted,you’re youra decisionfoster lettercarer willor explainkinship whycarer) 

  • the andSA107 howsupplementary page to appeal.

    Whenreport youincome mustfrom appealtrusts dependsor onestates 

  • the whenSA109 yousupplementary receivepage afor decisionthe letter.

    If2026 youto received2027 atax decisionyear — you beforecan 1read Aprilthe 2026

    Youreasons mustfor appealusing byan 30SA109 Aprilin 2026.

    the ‘SA109 supplementary page’ section 

WeIf startedyou included any reviewingof these appealsclaims or onpages in 1your April2024 2026.

Ifto you2025 receivetax areturn, decisionread the section on or‘Automatic afterexemptions 1that last until April 2026

2027’. 

You canshould appealapply upfor an exemption if you have a good reason to 30think daysyou afterwill theinclude dateany onof thethis letter.information in your 2026 to 2027 tax return. 

If you needare morea timenon-UK toresident appeal:

foreign entertainer or sportsperson

.

Exemptions that last beyond April 2027

You will need to sendapply for an exemption if your appeal2024 into writing2025 and:

  • usetax thereturn titledid ‘Makingnot Taxshow Digitalthe forfollowing, Incomebut Taxyou reasonably expect your digitally2026 excludedto appeal’2027 fortax areturn digitallyto excludedshow exemptionthat appeal
  • you are either: 

    If youone haveof notthese doneexemptions soapplies already,to you, you shouldwill readneed aboutto the stepsuse for Making Tax Digital for Income Tax to helpin the future. We’ll set out the timeline for this at a later date. 

    You should not apply for an exemption if you preparedo not have a good reason to signthink upyou andwill useinclude it,any ifof this information in your appeal2026 isto not2027 accepted.tax Youreturn. 

    If mustyou alsoincluded continueany keepingof recordsthese orclaims or supportingpages in documentsyour like2024 youto normally2025 dotax return, read the section on ‘Automatic exemptions’.

    You can apply for Selfan Assessment.exemption for Making Tax Digital for Income Tax.

Updates to this page

Published 2923 JanuarySeptember 20262021
Last updated 1529 AprilJanuary 2026 + show all updates
  1. The updated guidance explains that if you’re exempt from sending VAT returns using Making Tax Digital compatible software because you’re going through an insolvency procedure, and you are exempt,signed up to Making Tax Digital for Income Tax, you will remainnot onbe exempt and should continue to use the currentservice.

  2. The andguidance filinghas penaltiesbeen updated to give more information about what being digitally excluded means for SelfMaking Assessment. Tax Digital for Income Tax. It has also been updated to clarifyinclude thatinformation youabout musthow continue to keepcontact recordsus orif supportingyou're documentsexempt from using Making Tax Digital compatible software for SelfVAT Assessmentreturns.

  3. If ifyou're yourexempt from sending online returns for Making Tax Digital for VAT, you should contact HMRC when the exemptions application orprocess appealopens for Making Tax Digital for Income Tax. If your VAT exemption is due to your insolvency, you're not accepted.exempt from Making Tax Digital for Income Tax.

  4. The reasons for when to apply for an exemption from using Making Tax Digital for Income Tax have been clarified.

  5. Added translation

  6. First published.

Sign up for emails or print this page