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tax-deadlinesUpdated 2026-02-27

Can I get an exemption from Making Tax Digital?

Quick Answer

Most people cannot get an exemption. Automatic exemptions exist for specific groups including foster carers and ministers of religion. Digital exclusion exemptions require an HMRC application.

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Detailed Explanation

Exemptions from Making Tax Digital are limited and most taxpayers will not qualify.

Automatic exemptions (no application needed): - Foster carers and shared-lives carers - Ministers of religion - Certain trust beneficiaries with property income - Lloyd's underwriters - Those without a UK National Insurance number - Farmers, writers, and musicians (deferred to April 2027, not permanently exempt)

Digital exclusion exemptions (application required): You can apply for a digital exclusion exemption if: - Your age, disability, or health condition prevents you from using a computer - Your location has no reliable internet access - Your religious beliefs prevent you from using electronic communications

As of February 2026, approximately 1,300 people have applied for digital exclusion exemptions, and over 200 have been denied. HMRC assesses each case individually.

Not valid reasons for exemption: - Preferring paper records - Not wanting to pay for software (free options exist) - Having an accountant who files for you (they can use MTD software on your behalf) - Being unfamiliar with technology (HMRC offers support and guidance)

If you believe you qualify, apply to HMRC as early as possible. The application process can take several weeks.

Source: HMRC MTD Exemptions and Digital Exclusion Guidance

Real-World Examples

Elderly Landlord With No Internet

You are 82 years old, live in a rural area with poor broadband, and manage two rental properties. You can apply for a digital exclusion exemption from HMRC, citing both age-related difficulty and lack of internet access.

Foster Carer

You are a registered foster carer. You are automatically exempt from MTD ITSA and do not need to apply for an exemption.

Self-Employed Tradesman Uncomfortable With Technology

You are a 50-year-old plumber who prefers paper records. Being uncomfortable with technology is not a valid reason for exemption. Free software options and accountant support are available.

Common Mistakes to Avoid

  • Assuming that not wanting to use software qualifies as a digital exclusion — it does not.
  • Not applying early enough — processing times can take several weeks.
  • Confusing deferral (farmers, writers, musicians) with permanent exemption — they are only deferred to April 2027.
  • Assuming your accountant filing for you exempts you from MTD — it does not, though they can submit on your behalf using MTD software.

How do I apply for a digital exclusion exemption?

Contact HMRC by phone or post to request a digital exclusion exemption. You will need to explain why you cannot use digital tools. HMRC assesses each case individually.

Can my accountant get me exempt from MTD?

No. Having an accountant does not exempt you. However, your accountant can use MTD-compatible software to submit quarterly updates and your Final Declaration on your behalf.

What happens if my exemption is denied?

If your application is denied, you must comply with MTD from the relevant start date. You can appeal the decision if you believe it was incorrect.

Are partnerships exempt from MTD?

Partnerships are not exempt — they are deferred. HMRC has not confirmed a date for partnerships to join MTD ITSA. Individual partners with qualifying personal income may still be in scope.

Practical Tips

  • If you think you qualify for digital exclusion, apply to HMRC at least three months before your MTD start date.
  • Keep evidence to support your application — medical letters, broadband coverage reports, or religious documentation.
  • If you do not qualify for exemption, explore free MTD software options to minimise costs.
  • Ask your accountant whether they can handle MTD submissions on your behalf as an alternative to seeking exemption.

Related Questions

What is Making Tax Digital (MTD)?

Making Tax Digital is HMRC's initiative requiring businesses to keep digital records and submit returns using compatible software. VAT is already under MTD; Income Tax follows in April 2026.

When does Making Tax Digital for Income Tax start?

MTD for Income Tax Self Assessment starts in April 2026 for those with qualifying income over £50,000, April 2027 for £30,000+, and April 2028 for £20,000+.

Is there free MTD software available in the UK?

Yes. Free MTD-compatible options include QuickFile, My Tax Digital, FreeAgent (free via NatWest, Mettle, or Lloyds business accounts), and Clear Books (free tier). AccountsOS offers a 14-day free trial, then £20/month.

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