Exemptions and deferrals from MTD

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) introduces new reporting requirements for self‑employed individuals and landlords. However, many people do not need to use MTD at all. Some exemptions apply automatically, while others require an application to HMRC.

If you qualify, you can continue filing your Self Assessment tax return in the usual way, including using "untied".

Automatic exemptions

Long-term exemptions

These exemptions apply without needing to contact HMRC.

Low qualifying income

If your total combined income from self‑employment and property is £20,000 or less, you are automatically exempt from MTD.

You still can choose to come into MTD voluntarily if you have one or more of these income sources - in which case you won't need to file quarterly returns in-year but will need to complete an end-of-year submission in software.

No National Insurance number

If you do not have a National Insurance number, you cannot sign up for MTD and are automatically exempt.

Exempt roles and responsibilities

You are exempt when filing as a:

• trustee
• charitable trustee
• trustee of a non‑registered pension scheme
• personal representative for someone who has died
• person filing on behalf of a non‑resident company

If you also have personal self‑employment or rental income, you may still need to use MTD for that income depending on your qualifying income.

Lloyd’s members

If you are a Lloyd’s member reporting underwriting profits, you are automatically exempt.

Health or capacity limitations

You are exempt if you cannot reasonably use digital tools due to physical or mental health conditions, age, or disability and have an enduring or lasting power of attorney or court‑appointed deputy acting on your behalf (while this is automatic, you may want to inform HMRC as they may not be aware of these circumstances).

Deferrals - automatic exemptions until April 2027

You do not need to join MTD for Income Tax until the 2027–2028 tax year if your 2024–2025 Self Assessment return included any of the following (if you expect these in the future, then you may need to apply to HMRC - see below):

• averaging relief (for farmers and creative artists)
• qualifying care relief (for foster carers or shared lives/kinship carers)
• SA107 for income from trusts or estates
• SA109 for residency and non‑dom‑related claims such as overseas workday relief, split‑year treatment, temporary repatriation, the foreign income and gains regime, or business investment relief

No application is needed if these were included in your 2024–2025 return.

You will need to join MTD from 2027–2028 if your qualifying income is above £30,000 in 2025–2026.

Specific notes on SA109 supplementary page overview (and equivalent going forward)

The SA109 page applies if you are:

• non‑UK resident
• dual resident
• claiming overseas workday relief
• expecting split‑year treatment
• claiming the temporary repatriation facility
• claiming the foreign income and gains regime
• a former remittance basis user claiming business investment relief

If you used this page in 2024–2025, you are automatically exempt from MTD until 2027–2028.

Extended deferrals and automatic exemptions beyond April 2027

Some groups remain exempt until HMRC announces a future requirement. This applies if your 2024–2025 tax return included:

• SA102M for ministers of religion
• a claim or transfer of Married Couple’s Allowance (this is not the same as the Marriage Allowance - the MCA only applies if one person was born on or before 5 April 1935)
• a claim or transfer of Blind Person’s Allowance
• Lloyd’s members with self‑employment or rental income

No application is required.

Exemptions you must apply for

Some people must submit an application to HMRC to be exempt.

Power of attorney (PoA)

You will be exempt if you are unable to manage your taxes and have either:

• given someone enduring power of attorney or lasting power of attorney to act on your behalf
• a deputy appointed by a UK court to act on your behalf

(This is an automatic exemption but we have also put it in this section as unlike other automatic exemptions, HMRC are not necessarily going to be aware of these circumstances and may need to be advised)

Digital exclusion

You may be exempt if it is not reasonable for you to use digital tools because of:

• age
• disability
• physical or mental health conditions (even without a power of attorney)
• religious beliefs preventing digital technology use
• lack of reliable internet due to home or business location

If someone applies on your behalf, the exemption is still based on your circumstances.

Already digitally excluded for VAT

If HMRC previously confirmed that you are digitally excluded from MTD for VAT, you should contact Self Assessment general enquiries with your National Insurance number and VAT registration number. If nothing has changed, HMRC will also exempt you from MTD for Income Tax.

If your VAT-related exemption was due to insolvency, this does not exempt you from MTD for Income Tax.

Temporary exemptions requiring application until April 2027

You should apply if your 2024–2025 return did not include, but your 2026–2027 return is expected to include:

• averaging relief
• qualifying care relief (including foster carers and shared lives carers)
• SA107 (trusts and estates)
• SA109 (residence or non‑dom claims)

Non‑UK resident entertainers and sportspeople must always apply.

Exemptions beyond April 2027 requiring application

You must apply if your 2024–2025 return did not include, but your 2026–2027 return is expected to include:

• SA102M for ministers of religion
• Married Couple’s Allowance (this is not the same as the Marriage Allowance - the MCA only applies if one person was born on or before 5 April 1935)
• Blind Person’s Allowance

Apply only if you genuinely expect these to be relevant for 2026–2027.

Those unlikely to be granted an exemption

Note that HMRC will not accept applications based only on:

• preferring paper returns
• being unfamiliar with software
• having few transactions
• cost or time involved in switching to MTD

How to apply for an exemption from MTD for Income Tax

If you think MTD shouldn’t apply to you, you can request an exemption directly from HMRC.

Who can apply

• You, applying for yourself
• An authorised agent (accountant, tax adviser, bookkeeper etc)
• A friend, or family member who has been authorised

When to apply

• Apply before your MTD start date.
• Start date guidance:
  • If your MTD start date is 6 April 2026, you can apply now.
  • For start dates in 2027 or 2028, apply from summer 2026 or 2027 respectively.

What you need

• Name, address, National Insurance number
• Explanation of the reason for exemption, including supporting evidence
• How Self Assessment is currently filed
• More details if claiming digital exclusion (eg disability, location, religion)
• If you are applying for someone else:
  • Include your relationship + confirmation you’re authorised
  • Explanation of why the taxpayer should be exempt, with supporting details

Apply by phone or in writing

You must call or write to HMRC using the contact details below:

• Self Assessment: general enquiries (for individuals)
  • 0300 200 3310

  • Or by writing to:

    Self Assessment

    HM Revenue and Customs

    BX9 1AS

• Agent Dedicated Line (for agents)
  • 0300 200 3311

If you are writing, use one of these subject lines:

• “Making Tax Digital for Income Tax — digitally excluded application”
• “Making Tax Digital for Income Tax — exemption application”

After you’ve applied

• HMRC aims to reply within 28 days
• They may request more information
• They will confirm whether your exemption is approved and how long it lasts
• If it's rejected you will be able to appeal
• Decisions made before 1 April 2026 take legal effect from that date

Summary

Many people are exempt from Making Tax Digital for Income Tax, either permanently or temporarily. Automatic exemptions apply to low‑income taxpayers, certain roles, Lloyd’s members, those unable to use digital tools, and people who included specific pages or claims in their 2024–2025 return. Others may apply for exemption where digital use is not reasonable.

Those exempt must continue filing Self Assessment in the traditional way.