Key takeaways

  • Partnerships, people with qualifying income of £20,000 or less, and people without a National Insurance number are automatically exempt from MTD for Income Tax.
  • Ministers of religion (SA102M), Lloyd's members (SA103L) and people claiming Married Couple's Allowance or Blind Person's Allowance are exempt beyond April 2027, with no start date set.
  • Budget 2026 exempts people eligible for qualifying care relief, non-UK resident entertainers and sportspeople, and expected non-residents until further notice.
  • You can apply for a digital exclusion exemption if age, health, disability, religious beliefs or no internet access make using software unreasonable.
  • HMRC will not grant an exemption just because you prefer paper, are unfamiliar with software, have few records or face extra cost.
  • Apply by calling Self Assessment general enquiries on 0300 200 3310 or by letter; HMRC aims to reply within 28 calendar days.
  • If HMRC refuses, you can appeal within 30 days of the date on the decision letter.

You do not have to join Making Tax Digital (MTD) for Income Tax if you fall into one of HMRC’s exempt groups, such as partnerships, ministers of religion and people who are digitally excluded. Some exemptions are automatic. Others need an application to HMRC, which aims to reply within 28 days.

Who is automatically exempt?

You are exempt without applying if HMRC already knows your circumstances. GOV.UK’s exemption guidance, last updated 28 May 2026, lists these permanent automatic exemptions:

  • partnerships, for now, with a timeline to be set later
  • people with qualifying income of £20,000 or less
  • people without a National Insurance number before the start of the tax year
  • non-resident companies filing an SA700
  • trusts filing an SA900, including charitable trusts
  • personal representatives of someone who has died
  • Lloyd’s members using SA103L for underwriting business
  • people unable to deal with HMRC because of physical or mental incapacity, with a power of attorney or legally appointed deputy, controller or guardian

Personal representatives and trustees can still be brought in by their own personal self-employment or property income.

Exemptions with no start date

Some groups are exempt beyond April 2027, and no date has been set for them to join. This applies automatically if your 2024-25 return included any of these:

Item on your returnWho it covers
SA102MMinisters of religion of any faith
SA103L plus trading or property incomeLloyd’s members
Married Couple’s AllowanceBorn before 6 April 1935
Blind Person’s AllowanceReceived or transferred

If your 2024-25 return did not show the item but you reasonably expect your 2025-26 or 2026-27 return to, you must apply.

What Budget 2026 changed

Budget 2026 widened two temporary exemptions. The Budget 2026 overview of tax legislation, published 28 October 2026, says these groups are exempt “until further notice”:

  • people eligible for qualifying care relief, such as foster and kinship carers
  • non-UK resident foreign entertainers and sportspeople, and people expected to be non-resident

Secondary legislation will be made before April 2027. Before the Budget, GOV.UK described these as exemptions only until April 2027. Check the guidance again once the regulations are laid. A small number of insolvent customers who cannot sign up are also outside MTD because HMRC cannot offer them a digital service. See MTD in Budget 2026.

Farmers, market gardeners and creative workers claiming averaging relief on SA103, and people filing SA107 trust pages, are exempt until April 2027. HMRC’s current guidance says MTD then applies to them if qualifying income for 2025-26 is over £30,000.

Can you be exempt as digitally excluded?

Yes, if it is not reasonable for you to use software to keep digital records or send updates. HMRC accepts three reasons:

  • your age, health or disability stops you using a computer, tablet or smartphone
  • you belong to a religious society whose beliefs are incompatible with digital records, and you do not use devices for business or personal purposes
  • you have no internet access at home or at your business because of where you are, with no suitable alternative

HMRC will not accept an application where your only reason is that you filed on paper before, are unfamiliar with software, keep few records, or face extra time or cost. Each case is judged on your own circumstances, even if an agent or relative applies for you.

If you already have a digital exclusion exemption for MTD for VAT, call Self Assessment general enquiries. If nothing has changed, you are also exempt for Income Tax.

How to apply for an exemption

Apply by phone or post. The GOV.UK application guidance, updated 17 August 2026, sets out the steps.

  1. Contact HMRC. Call Self Assessment general enquiries on 0300 200 3310, Monday to Friday, 8am to 6pm, or write. Agents use the Agent Dedicated Line. See our Self Assessment helpline guide.
  2. Head your letter correctly. Use “Making Tax Digital for Income Tax: digitally excluded application” or “Making Tax Digital for Income Tax: exemption application”.
  3. Give your details. Include your National Insurance number, name, address and why you are exempt, with supporting information.
  4. For digital exclusion, explain more. Say how you file now, any help you get, what your agent does and any additional needs.
  5. Applying for someone else? Explain your connection and include their signed authorisation, or have them on the call.
  6. Keep preparing. HMRC aims to reply within 28 calendar days. Carry on getting ready in case you are refused.

Apply before you need to join. If you join from 6 April 2028, HMRC says to apply from summer 2027.

What if HMRC says no?

You can appeal within 30 days of the date on the decision letter. Send it to the address in the letter, headed “Making Tax Digital for Income Tax: digitally excluded appeal” or “exemption appeal”, with any new information.

Exempt does not mean penalty free

An exemption takes you out of quarterly updates, not out of Self Assessment. You still file a tax return and keep records. HMRC’s penalties guidance says the new points-based penalties apply to everyone filing a personal Self Assessment return from April 2027. See MTD penalties.

Frequently asked questions

Are partnerships exempt from MTD for Income Tax?

Yes, for now. Partnerships do not have to use MTD for Income Tax and no start date has been set. Partners’ own sole trade or property income can still bring them in.

Are foster carers exempt from MTD?

Yes. Budget 2026 confirmed that people eligible for qualifying care relief are exempt until further notice, and that income does not count towards qualifying income.

Can I be exempt because I am over 70?

Age alone is not enough. You can apply if your age stops you using a computer, tablet or smartphone, and HMRC judges each case individually.

How long does an MTD exemption application take?

HMRC aims to respond within 28 calendar days. It may take longer if HMRC needs more information.

Do I need to apply for an exemption if my income is under £20,000?

No. People with qualifying income of £20,000 or less are automatically exempt.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.