Find out if you can get an exemption from Making Tax Digital for Income Tax
Check if you鈥檙e automatically exempt from Making Tax Digital for Income Tax or if you can apply for an exemption in the future.
We鈥檒l set out further guidance on deferrals and exemptions for Making Tax Digital for Income Tax in the future.
Who can apply for an exemption
You will be able to apply for an exemption from using Making Tax Digital for Income Tax when the application process opens.
If you think you are digitally excluded, you can apply if:
- it鈥檚 not practical for you to use software to keep digital records or submit them 鈥� this may be due to your age, disability, location or another reason
- you are a practising member of a religious society (or order) whose beliefs are incompatible with using electronic communications or keeping electronic records
You鈥檒l need to explain how these reasons apply to your own circumstances.
We鈥檒l consider the information you send us and we鈥檒l either tell you:
- that you鈥檙e exempt (we鈥檒l let you know what you need to do next)
- why you鈥檙e not exempt and how you can appeal
If you鈥檙e not exempt, you鈥檒l need to sign up for Making Tax Digital for Income Tax.
If the reason for your exemption no longer applies you must tell HMRC within 3 months.
We鈥檒l tell you how to apply for an exemption at a later date when the application process opens.
If you鈥檙e exempt from sending online VAT returns
If HMRC has previously confirmed you鈥檙e exempt from sending online returns for Making Tax Digital for VAT, you should contact us when the application process opens. This is so we can check some information with you about your circumstances.
If your circumstances have not changed, we鈥檒l confirm that you鈥檙e also exempt from Making Tax Digital for Income Tax. If they have changed, you鈥檒l need to apply for an exemption.
If your VAT exemption is due to your insolvency
You鈥檙e not exempt from Making Tax Digital for Income Tax if you or your business are subject to an insolvency procedure.
Who is automatically exempt聽
You鈥檙e automatically exempt and cannot sign up for Making Tax Digital if you are a:鈥�
- trustee, including a charitable trustee or a trustee of non-registered pension schemes鈥�
- person that does not have a National Insurance number 鈥� this only applies for a tax year where you do not have a National Insurance number on 31 January before the start of that tax year鈥�
- personal representative of someone who has died鈥�
- Lloyd鈥檚 member, in relation to your underwriting business鈥�
- non-resident company鈥�
If you are automatically exempt, you will not need to apply for an exemption.
Updates to this page
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If you're exempt from sending online returns for Making Tax Digital for VAT, you should contact HMRC when the exemptions application process opens for Making Tax Digital for Income Tax. If your VAT exemption is due to your insolvency, you're not exempt from Making Tax Digital for Income Tax.
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Information about who is automatically exempt has been added.
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The reasons for when to apply for an exemption from using Making Tax Digital for Income Tax have been clarified.
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Added translation
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First published.