Last checked: 14 October 2026. General information, not tax advice. MTD HQ is independent and not affiliated with HMRC.
Some people don’t have to use Making Tax Digital for Income Tax, even if their income is over the threshold. A few exemptions are automatic, so you don’t need to do anything. Others you have to apply to HMRC for, and HMRC decides. Being exempt from MTD doesn’t mean you stop filing a tax return: you still send a Self Assessment return as normal.
Not sure if MTD applies to you at all? Start with our free Making Tax Digital threshold checker.
Automatic MTD exemptions: no need to apply
If one of these applies to you, you’re exempt without contacting HMRC.
| Exemption | How long it lasts |
|---|---|
| Your qualifying income is £20,000 or less | Unless your income goes over the threshold |
| You don’t have a National Insurance number before the tax year starts | Unless your circumstances change |
| You can’t provide information to HMRC because of a physical or mental condition, and someone acts for you under a power of attorney, or as a legally appointed deputy, controller or guardian | Unless your circumstances change |
| You’re the personal representative of someone who has died, dealing with their tax | Unless your circumstances change |
| Your 2024/25 return included the SA109 residence page. This includes most non-UK residents | The 2026/27 tax year |
| Your 2024/25 return included the SA107 page for income from trusts or estates | The 2026/27 tax year |
| You claimed qualifying care relief in 2024/25, for example as a foster carer or kinship carer | The 2026/27 tax year |
| You claimed averaging relief as an individual in 2024/25, for example as a farmer or someone who creates literary or artistic work | The 2026/27 tax year |
| You’re a minister of religion who files the SA102M page | Beyond April 2027; HMRC will announce when it ends |
| You declared Married Couple’s Allowance or Blind Person’s Allowance in 2024/25 | Beyond April 2027; HMRC will announce when it ends |
| You’re a Lloyd’s member who files the SA103L page | Beyond April 2027 for self-employment or property income |
Partnerships don’t have to use MTD for Income Tax yet. But if you’re a partner who also has your own self-employment or rental income, that income can still bring you in. See MTD for limited companies and partnerships.
What happens when a temporary exemption ends? GOV.UK says that if you’re exempt for 2026/27 only, you’ll need to use MTD from the 2027/28 tax year if your qualifying income on your 2025/26 return is over £30,000.
Exemptions you have to apply for
If you’re digitally excluded
HMRC can exempt you if it isn’t reasonable for you to use MTD software for one of these reasons:
- Age, health or disability: your age, a health condition or a disability stops you using a computer, tablet or smartphone to keep digital records or send them to HMRC.
- Religion: you’re a practising member of a religious society or order whose beliefs are incompatible with using electronic communications or keeping electronic records, and you don’t use a computer, tablet or smartphone for business or personal use.
- Where you live: you can’t get internet access at your home or business because of where it is, and there’s no suitable alternative place you could use.
HMRC considers other situations case by case.
What HMRC won’t accept on its own. GOV.UK says these aren’t enough by themselves:
- you’ve always sent a paper tax return
- you’re not familiar with accounting software
- you only have a few transactions a year
- signing up will take you extra time or cost you money
If you expect to claim certain reliefs or allowances
If you didn’t use these in 2024/25 but expect to in 2025/26 or 2026/27, you need to apply rather than being exempt automatically:
- averaging relief, qualifying care relief, or the SA107 or SA109 pages: exemption until April 2027
- partners claiming averaging relief on the SA104 page: exemption until April 2027
- Married Couple’s Allowance, Blind Person’s Allowance, or the SA102M page as a minister of religion: exemption beyond April 2027
How to apply for an MTD exemption
- Contact HMRC by phone or letter. Use the Self Assessment: general enquiries contact details. There’s no online form. If you write, title your letter “Making Tax Digital for Income Tax — digitally excluded application” or “Making Tax Digital for Income Tax — exemption application”.
- Give your details: your National Insurance number, name and address, and why you should be exempt, with any supporting information.
- If you’re digitally excluded, also explain how you send your tax return now (including any help you get), whether you have an agent and what they do, and any extra support you need.
- Wait for HMRC’s letter. HMRC aims to reply within 28 calendar days, or longer if it needs more information. The letter tells you what kind of exemption you have and how long it lasts.
When to apply: before you’d have to start using MTD. If you’d be in from 6 April 2027, you can apply now. For 6 April 2028, apply from summer 2027.
While you wait: keep your records as you normally would for Self Assessment. If you’re already signed up for MTD and your circumstances have changed, keep using MTD until HMRC replies.
Someone can apply for you. An accountant or tax agent can apply for each client. A friend or family member can apply with your permission, given in a signed letter or by you on the phone with them.
If HMRC refuses your application
HMRC’s letter explains why. You can appeal in writing within 30 days of the date on the letter. Title it “Making Tax Digital for Income Tax — exemption appeal” (or “digitally excluded appeal”), send it to the address in the letter, and include any new information. If you need more time, contact Self Assessment general enquiries.
Examples
These people are made up, to show how the rules work.
Margaret, 81, one rental flat. Her rent is £34,000 a year, so she’d normally be in MTD from April 2027. She has never used a computer and her eyesight makes a smartphone impractical. She can apply to HMRC as digitally excluded, explaining that her daughter currently helps her post a paper return.
Kevin, living in Spain, renting out a UK house. His 2024/25 return included the SA109 residence page, so he was automatically exempt for 2026/27. His UK rent on his 2025/26 return is £38,000, which is over £30,000, so he’ll need MTD from 6 April 2027.
Dan, plumber, doesn’t like computers. His takings are £45,000. He has always filed on paper and doesn’t want to learn software. On its own, that isn’t a reason HMRC accepts, so he’s likely to need MTD from April 2027. An accountant could keep his records and send his updates for him.
FAQs
If I’m exempt, do I still send a tax return? Yes. You carry on with Self Assessment as normal, including its usual penalties.
Do I need to tell HMRC about an automatic exemption? No. Automatic exemptions apply without contacting HMRC.
Can I get an exemption because software costs money? Not on that reason alone. Several MTD tools are free; see our free MTD software comparison.
Is an exemption permanent? Some are, unless your circumstances change. Others last until April 2027 or until HMRC announces an end date. A digital exclusion exemption may be permanent, depending on your situation.
What if my income drops below the threshold? That isn’t an exemption. You can stop using MTD once your qualifying income has been under the threshold for three tax years in a row.
Related guides: MTD for landlords, MTD for sole traders and the self-employed, qualifying income and how to sign up.
Sources: GOV.UK, Find out if you can get an exemption from Making Tax Digital for Income Tax (updated 28 May 2026) and Apply for an exemption from Making Tax Digital for Income Tax (updated 17 August 2026). Checked 14 October 2026. MTD HQ is independent and not affiliated with HMRC. This page is general information, not tax advice; for your own situation, speak to HMRC or an accountant.