MTD for Income Tax exemptions: who doesn’t have to join

Some exemptions are automatic (HMRC applies them from information it holds). Others you must apply for. Some are permanent, others last only until April 2027. Even if you are exempt, you still file a normal Self Assessment return.

Source for this whole page: GOV.UK: find out if you can get an exemption (updated 28 May 2026), and GOV.UK: apply for an exemption.

Automatic, permanent (unless circumstances change)

• Qualifying income of £20,000 or less.
• No National Insurance number before the start of the tax year.
• Role-based: trusts filing SA900, non-resident companies filing SA700, and personal representatives of someone who has died. Your own personal income may still be in scope.
• Your 2024-25 return included: SA103L as a Lloyd’s member, or a statement that you are not physically or mentally capable of providing information to HMRC with a power of attorney or legally appointed deputy, controller or guardian in place.

Automatic, until April 2027

If your 2024-25 return claimed averaging relief on SA103 as an individual, claimed qualifying care relief, or included SA107 (trusts and estates) or SA109 (residence), you don’t need MTD for 2026-27. You’ll need it from 2027-28 if your 2025-26 qualifying income is over £30,000. Non-resident landlords usually file SA109, so this one matters for them.

Automatic, beyond April 2027

If your 2024-25 return included SA102M (minister of religion) or Married Couple’s Allowance (born before 6 April 1935) or Blind Person’s Allowance, you’re exempt for now. HMRC says you will need MTD in future, on a timeline to be announced.

Exemptions you must apply for

• Expected claims: if one of the claims or pages above wasn’t on your 2024-25 return but you reasonably expect it on your 2025-26 or 2026-27 return.
• Digital exclusion: it isn’t reasonable for you to use software because of age, health condition or disability; religious beliefs incompatible with digital communications (and you don’t use a computer, tablet or smartphone for business or personal use); or you can’t get internet access at home or work because of your location, and can’t at a suitable alternative.

HMRC will not accept a digital exclusion application if your only reason is that you filed on paper before, you’re unfamiliar with accounting software, you have few records, or MTD will take extra time or cost.

How and when to apply

• Call or write to HMRC using the Self Assessment general enquiries contact details. Letters should use the subject “Making Tax Digital for Income Tax — digitally excluded application” or “… — exemption application”.
• Apply before you need to start. If you start from April 2027, you can apply now. If from April 2028, apply from summer 2027.
• HMRC aims to reply within 28 calendar days.
• A friend or family member can apply for you with your authorisation. An agent who uses software for you may mean you don’t need an exemption.

Use the checker to see how an exemption changes your start date.