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Who is exempt from Making Tax Digital for Income TaxÌý

There are different reasons why you may be exempt from Making Tax Digital for Income Tax. For example, you could beÌýexempt if you are digitally excluded.

If you are exempt, you will not have to use Making Tax Digital for IncomeÌýTaxÌýbut you must continue to report your income andÌýgains in aÌýSelf AssessmentÌýtax return as normal.

Types of exemptionsÌý

Exemptions for Making Tax Digital for Income Tax can either be:Ìý

• automatic exemptions — these are given by HMRCÌýbased on the information we hold so you do not need toÌýcontact HMRC orÌýsubmitÌýan applicationÌý
• exemptions you need to apply for — you should provide additional information with your application to tell us why you are exempt

These exemptionsÌýcan either be:Ìý

• permanent — unless your circumstances change
• temporary —ÌýlastingÌýuntil April 2027 at the earliest

Automatic exemptions

Partnerships

Partnerships do not currently need to use Making Tax Digital for Income Tax.ÌýWe’llÌýset out the timeline for when partnerships need to use Making Tax Digital for Income Tax in the future.

Permanent exemptions unless your circumstances change

You will not need to apply for the following exemptions.ÌýThese exemptionsÌýapply permanently and meanÌýyou will not need to use Making Tax Digital for Income Tax unless your circumstances change.

If your qualifying income is £20,000 or lessÌý

You are automatically exempt and do not need to use Making Tax Digital for Income Tax if yourÌýqualifying incomeÌýis £20,000 or less.Ìý

If youÌýdo not have aÌýNational Insurance numberÌý

You are automatically exempt and cannot sign up for Making Tax Digital for Income Tax if you do not have a National Insurance number beforeÌýthe start of the tax year.

ForÌýexample, if you receive a National Insurance number on 30 April 2026 and your qualifying income is over £50,000 for the 2024 to 2025 tax year, you will be exempt from using Making Tax Digital for Income Tax for the 2026 to 2027 tax year.

Role-based exemptions

You may be responsible for submitting a tax return on behalf of an entity, such as a trust.

The following entities are automatically exempt from Making Tax Digital for Income Tax:

• non-resident companies submitting an SA700
• trusts submitting an SA900 (including charitable trusts and trusts of non-registered pension schemes)

You should continue to submit Self Assessment tax returns as normal on behalf of these entities.

You are also automatically exempt from Making Tax Digital for Income Tax if you act as a personal representative of someone who has died, but you must make sure any outstanding Self Assessment tax returns are completed.

If you have your own personal self-employment or property income, you may still need to use Making Tax Digital for Income Tax to report that income. You should work out your qualifying income for Making Tax Digital for Income Tax.

Other exemptions

You are also automatically exempt if you included any of the following information in your 2024 to 2025 tax return:

• the SA103L supplementary page as a Lloyd’s member in relation to your underwriting business

• that you are not physically or mentally capable of providing information to HMRC and have either:

  • given power of attorney to someone in the UK to act on your behalf and it is currently in place
  • a legally appointed deputy, controller or guardian in place

Automatic exemptions that last until April 2027Ìý

You do not need toÌýuse Making Tax Digital for Income Tax for the 2026 to 2027 tax year, ifÌýinÌýyour 2024 to 2025 tax returnÌýyou:Ìý

• claimed averaging relief (as a farmer, market gardener or someone who personally creates literary or artistic works) using the SA103 supplementary page as an individual
• claimed qualifying care reliefÌý(such as, ifÌýyou’reÌýaÌýfoster carerÌýor kinship carer)
• included the SA107 supplementaryÌýpage to reportÌýincomeÌýfrom trusts or estatesÌý
• included the SA109 supplementary page

If one of these exemptions applies,Ìýyou do not need to contact or apply to HMRC.Ìý

YouÌýwill need to use Making Tax DigitalÌýfor Income TaxÌýfrom the 2027 to 2028 tax year onwardsÌýif your qualifying income is above £30,000 in the 2025 to 2026 tax year.Ìý

Read the section on ‘Exemptions you need to apply for’, if you either:

• used the SA104 supplementary page to claim averaging relief as a partner in your 2024 to 2025 tax return
• did not include any of theÌýclaims orÌýpagesÌýin your 2024 to 2025 tax return, but reasonably expectÌýto do so in your 2025 to 2026 or 2026 to 2027 tax return

Automatic exemptions that last beyond April 2027Ìý

You are automatically exemptÌýif your 2024 to 2025 tax return included any of the following claims or pages:

• the SA102M supplementary pageÌýbecause you are a Minister of religion of any faith,ÌýreligionÌýor denomination
• the SA103L supplementary page because you are a Lloyd’s member with self-employment or property income
• declared that you received or transferredÌýMarried Couple’s Allowance (for those born before 6 April 1935)
• declared that you received or transferred Blind Person’s AllowanceÌý

If one of these exemptions applies,ÌýyouÌýdoÌýnot need to contact HMRC or apply for an exemption.

You will need to use Making Tax Digital for Income Tax in the future.ÌýWe’llÌýset out the timeline for thisÌýat a later date.Ìý

If you did not include any of these in your 2024 to 2025 tax return but youÌýreasonably expectÌýto do so in your 2025 to 2026 or 2026 to 2027 tax return, read the section on ‘Exemptions you need to apply for’.Ìý

ExemptionsÌýyou need to apply forÌý

DigitallyÌýexcludedÌýexemptionÌý

Being digitally excluded from Making Tax Digital for Income Tax meansÌýit’sÌýnot reasonable for you to use compatible software to:

• keep digital recordsÌý
• send quarterly updates orÌýsubmitÌýyour tax returnÌý

There areÌýdifferent reasonsÌýwhy this may apply to you, for example:Ìý

• your age, health condition or disability stops you from using a computer,ÌýtabletÌýor smartphone to keep digital records orÌýsubmitÌýthem to HMRCÌý
• you’reÌýaÌýpractising member of a religious society or order whose beliefs are incompatible with using digital communications or keeping digital records, and you do not use a computer, tablet or smartphone for business or personal use
• you cannot get internet access at your home or business because of your location, and cannot get access at a suitable alternative location

HMRC will not accept your application for an exemption if your only reason for applying is one of the following:

• you previously filed a paper return
• you’reÌýunfamiliar with accountancy software
• you have a small number of digital records to create each tax year
• it will take extra time or cost for you to sign up to and use Making Tax Digital for Income TaxÌý

There may be other reasons you may or may not be digitally excluded. HMRC will consider all applications on a case-by-case basis.Ìý

You can apply for an exemption for Making Tax Digital for Income Tax if you think you are digitally excluded.Ìý

If you have an agent, friend or family member applying on your behalf, the exemption will still be based on your personal circumstances.Ìý

IfÌýyou’reÌýexempt from using Making Tax Digital compatible software for VAT returnsÌý

You should contactÌýSelf Assessment: general enquiries by phone or in writing if HMRC previously confirmedÌýyou’reÌýexempt from sending VAT returns using Making Tax Digital compatible software becauseÌýyou’reÌýdigitally excluded.Ìý

You’llÌýneed to tell us:

• your National Insurance numberÌý
• your VAT registration numberÌý
• the reasonÌýyou’reÌýdigitally excluded from sending VAT returns using Making Tax Digital compatible software, and if your circumstances have changedÌý

If your circumstances haveÌýnot changed,Ìýwe’llÌýconfirm thatÌýyou’reÌýalso exempt from Making Tax Digital for Income Tax. If they have changed,Ìýyou’llÌýneed to apply for an exemption.Ìý

If your VAT exemption is due to insolvencyÌý

If your VAT exemption is becauseÌýyou’reÌýgoing through an insolvency procedureÌýand you are signed up toÌýMaking Tax Digital for Income Tax,Ìýyou will not be exempt and should continue to use the service.Ìý

ExemptionsÌýthat lastÌýuntil April 2027

You will need to apply for an exemption if your 2024 to 2025 tax return did not show the following, but youÌýreasonably expectÌýyour 2025 to 2026 or 2026 to 2027 tax return to include either:Ìý

• a claim for averaging relief (as a farmer, market gardener or someone who personally creates literary or artistic works) using the SA103 supplementary page as an individual
• a claim forÌýqualifying careÌýreliefÌý(such as, if you’re a foster carer or kinship carer)Ìý
• the SA107 supplementary page to report income from trusts or estatesÌý
• the SA109 supplementary pageÌý—Ìýyou can read the reasons for using an SA109 in the ‘SA109 supplementary page’ section

You will also need to apply for an exemption if as a partner, who would otherwise need to use Making Tax Digital for Income Tax, you either:

• claimed averaging relief using the SA104 supplementary page in your 2024 to 2025 tax return
• reasonably expect to claim averaging relief using the SA104 supplementary page in your 2025 to 2026 or 2026 to 2027 tax return

SA109 supplementary page

There are different reasons why you may need to include the SA109 supplementary page in your 2025 to 2026 or 2026 to 2027 tax return. These include where you’re:

• non-resident in the UK in that tax year (including those entitled to claim personal allowances because of the terms of a Double Taxation Agreement)

• resident in the UK in that tax year and you’re:

  • also a tax resident in another country
  • eligible for overseas workday relief and you expect to make a claim or election
  • expecting split year treatment to apply
  • eligible to use the temporary repatriation facility and expect to make an election to do so
  • eligible for the foreign income and gains regime and expect to make a claim
  • a former remittance basis user who expects to make a claim for business investment relief
  • a formerÌýremittance basisÌýuser who expects to remit more than an aggregate of £10 in nominated income or gains
  • a formerÌýremittance basisÌýuser who previously claimedÌýbusiness investment reliefÌýand the investment no longer qualifies forÌýrelief
  • non-UK resident foreign entertainer or sportsperson

You do not need to use Making Tax Digital for Income Tax for the 2026 to 2027 tax year if one of these exemptions applies to you. If your qualifying income is more than £30,000, you will need to use Making Tax Digital for Income Tax from the 2027 to 2028 tax year onwards.

You should not apply for an exemption if you do not have a good reason to think you will include any of this information in your 2025 to 2026 or 2026 to 2027 tax return.

If youÌýincludedÌýany of these claimsÌýor pagesÌýin your 2024 to 2025 tax return, read the section on ‘Automatic exemptions that last until April 2027’.

You can apply for an exemption for Making Tax Digital for Income Tax.

ExemptionsÌýthat lastÌýbeyond April 2027

You will need to apply for an exemption if your 2024 to 2025 tax return did not show the following, but youÌýreasonably expectÌýyour 2025 to 2026 or 2026 to 2027 tax return to either:Ìý

• declare that you will receive or transferÌýMarried Couple’s Allowance (for those born before 6 April 1935)Ìý
• declare that you will receive or transferÌýBlind Person’s AllowanceÌý

You will need to apply for an exemption if your 2024 to 2025 tax return did not include the SA102M supplementary page, but you will include it in your 2025 to 2026 or 2026 to 2027 tax return because you are a Minister of any faith, religion or denomination.

If one of these exemptions applies to you, you will need to use Making Tax Digital for Income Tax in the future.ÌýWe’llÌýset out the timeline for thisÌýat a later date.Ìý

You should not apply for an exemption if you do not have a good reason to think you will include any of this information in your 2025 to 2026 or 2026 to 2027 tax return.Ìý

If you included any of these claimsÌýor pagesÌýin your 2024 to 2025 tax return, read the section on ‘AutomaticÌýexemptions’.

You can apply for an exemption for Making Tax Digital for Income Tax.