Making Tax Digital for Income Tax exemptions: who is exempt and who can apply

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Some people are exempt from Making Tax Digital for Income Tax automatically. Others can apply to HMRC if they are digitally excluded. Finding the software unfamiliar, or having filed on paper before, is not enough.

Checked against GOV.UK guidance on 3 October 2026. General information, not advice.

Automatically exempt

Qualifying income of £20,000 or less: Self-employment and property income combined, before expenses.
No National Insurance number: You are exempt without applying.
Other specific groups: GOV.UK lists further groups, some exempt only for a limited period. Check its list if you claim a specialist relief or allowance.

You can apply if you are digitally excluded

HMRC's guidance gives three grounds:

Age, health or disability: Your age, health condition or disability stops you from using a computer, tablet or smartphone.
Religion: You are a practising member of a religious society or order whose beliefs are incompatible with using digital communications.
Location: You cannot get internet access at your home or business because of where it is.

Reasons HMRC does not accept

You filed a paper return before: Not a ground for exemption.
You are unfamiliar with accountancy software: Not a ground for exemption.
You only have a few records to create each year: Not a ground for exemption.
Signing up will take extra time or cost: Not a ground for exemption.

If you are already exempt from Making Tax Digital for VAT

Contact HMRC's Self Assessment general enquiries by phone or in writing. Give your National Insurance number, your VAT registration number, the reason you are digitally excluded for VAT, and whether your circumstances have changed.

If you are exempt

You do not use Making Tax Digital for Income Tax, but you must keep reporting your income and gains in a Self Assessment tax return as normal.

Source

GOV.UK: Find out if you can get an exemption from Making Tax Digital for Income Tax.