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Making Tax Digital exemptions: who doesn’t have to join

Making Tax Digital

Making Tax Digital exemptions: who doesn’t have to join

Making Tax Digital for Income Tax applies to sole traders and landlords with qualifying income above the threshold, but some people are exempt automatically and others can apply.

AIBy Ali ImranUpdated 11 November 20263 min read
Person applying for an MTD exemption
In 30 seconds
  • Some groups are automatically exempt
  • You can apply if digitally excluded
  • Income under the threshold is outside MTD
  • Partnerships aren’t in MTD yet

Being digitally excluded, due to age, disability, location or religion, can qualify you for an exemption.

This guide explains the exemptions and how to apply.

Automatic exemptions

  • Qualifying income below the threshold, £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028
  • People without a National Insurance number
  • Trustees and personal representatives of estates
  • Non-resident companies
  • Lloyd’s underwriters for that income
  • People with Power of Attorney acting for someone
  • Recipients of the Married Couple’s Allowance or Blind Person’s Allowance, in the first phase

Digital exclusion

You can apply for an exemption if it isn’t reasonably practicable for you to use digital tools because of:

  • Age
  • Disability or health
  • Location, such as no reliable internet
  • Religious beliefs incompatible with electronic communication
  • Any other reason making it impractical

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How to apply

Apply to HMRC online, by phone or in writing, explaining why you can’t use MTD. HMRC aims to respond within 28 days. If you already have an exemption from MTD for VAT for the same reason, HMRC may take that into account.

For example

Bryn, 79, has a small farm and a rental cottage in rural Powys, with qualifying income of £58,000. He doesn’t use a computer and his broadband is unreliable. He applies for a digital exclusion exemption and continues filing an annual tax return through his accountant.

Fixed-fee accountancy support

Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.

Get a fixed-fee quoteCall 0161 531 4179

Using an agent instead

Many people who find software difficult don’t need an exemption. An accountant can keep digital records and submit quarterly updates for you. Our MTD packages start at £25 a month including VAT.

What counts as qualifying income

Gross income from self-employment and property, before expenses. Employment, pensions and savings income don’t count. Income from partnerships doesn’t count in the first phase.

Deferrals for some

HMRC has deferred some complex groups, such as those with foster carer income or certain partnerships, to later dates. Check GOV.UK for the latest.

See GOV.UK guidance on MTD exemptions and our MTD guide.

What should I do next?

Check qualifying income

Self-employment plus property.

Check automatic exemptions

Do any apply?

Apply if digitally excluded

Online, phone or letter.

Or let us do MTD

From £25 a month.

Frequently Asked Questions

Who is exempt from MTD for Income Tax?

People below the income threshold, those without an NI number, trustees, and others in specific groups.

Can I apply for an MTD exemption?

Yes, if you’re digitally excluded due to age, disability, location or religion.

How long does HMRC take to respond?

HMRC aims to respond within 28 days.

Are partnerships in MTD?

Not in the first phase.

Can an accountant do MTD for me?

Yes. An agent can keep records and submit updates.

Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.

AI

About the Author

Ali Imran
I’m Ali Imran, an accountant at Wingate Accountants. I help sole traders, landlords and directors get their returns filed early and accurately, without the last-minute panic.

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