Exemptions from MTD for Income Tax

Some exemptions are automatic (HMRC works them out from your return), others you must apply for. Some last only until April 2027. Exempt or not, you still file a Self Assessment return.

Situation	How	How long
Qualifying income of £20,000 or less	Automatic	Permanent, unless your income rises
No National Insurance number before the start of the tax year	Automatic (you cannot sign up)	For that tax year. Example: an NI number received on 30 April 2026 means exempt for 2026 to 2027
Non-resident company (SA700), trust or estate (SA900), personal representative of someone who has died	Automatic	For that role. Your own self-employment or property income may still need MTD
Partnership return	Automatic	Until HMRC announces a timeline for partnerships
Not physically or mentally able to provide information, with a power of attorney in the UK or a deputy, controller or guardian (declared on the 2024 to 2025 return)	Automatic	Permanent, unless circumstances change
2024 to 2025 return included: averaging relief on SA103 (farmers, market gardeners, creative artists), qualifying care relief (foster and kinship carers), SA107 (trusts) or SA109 (residence)	Automatic. Apply if you only expect these on the 2025 to 2026 or 2026 to 2027 return; partners claiming averaging on SA104 must apply	2026 to 2027 only. From April 2027 you need MTD if 2025 to 2026 qualifying income is over £30,000
Minister of religion (SA102M), Lloyd’s member (SA103L), Married Couple’s Allowance (born before 6 April 1935), Blind Person’s Allowance	Automatic if on the 2024 to 2025 return; otherwise apply	Beyond April 2027; HMRC will set a timeline later
Digitally excluded: age, health, disability, religious beliefs incompatible with digital records, or no internet access at home, business or a suitable alternative place	Apply to HMRC	Case by case

Independent tool, not affiliated with HMRC. It applies the rules published on GOV.UK to the figures you enter. It is not tax advice. HMRC’s letter and your HMRC online account are the only authoritative answer; if in doubt, ask HMRC or a tax adviser.

The SA109 page: who files it

The temporary exemption covers people who file the residence page because they are non-resident, dual resident, claim overseas workday relief, expect split-year treatment, use the temporary repatriation facility or the foreign income and gains regime, are former remittance basis users in certain situations, or are non-resident entertainers or sportspeople. Do not apply unless you have a good reason to expect to file it.

If you become exempt after joining

You stop keeping digital records and sending updates once HMRC confirms the exemption. Your penalty regime changes: back to the current Self Assessment penalties if it happens in 2026 to 2027; in 2027 to 2028, new penalties with a 2-point threshold. See penalties.

Being exempt is different from opting out: you can opt out after 3 consecutive years below the threshold, or if an amended return takes you below it.

Questions people ask

I am not good with computers. Am I exempt?

Not on that ground alone. HMRC rejects applications whose only reason is being unfamiliar with accounting software, having filed on paper before, having few records, or the time and cost of MTD. Age, health, disability, religious belief or no possible internet access can qualify; HMRC decides case by case.

I am exempt from MTD for VAT. Am I exempt for Income Tax too?

If HMRC confirmed your VAT exemption because you are digitally excluded, contact Self Assessment general enquiries with your National Insurance number, VAT number and the reason. If nothing has changed, HMRC confirms the Income Tax exemption too. A VAT exemption due to insolvency does not carry over.

Do I still file a tax return if I am exempt?

Yes. Exempt people keep reporting income and gains in a normal Self Assessment return.

Official sources

Find out if you can get an exemption from Making Tax Digital for Income Tax — GOV.UK, last updated 28 May 2026, read 29 September 2026.
Find out if and when you need to use Making Tax Digital for Income Tax — GOV.UK, last updated 26 March 2026, read 29 September 2026.
Use Making Tax Digital for Income Tax: If your circumstances change — GOV.UK, last updated 7 September 2026, read 29 September 2026.
Penalties for Making Tax Digital for Income Tax — GOV.UK, last updated 30 March 2026, read 29 September 2026.

Rules checked against GOV.UK on 29 September 2026.