You are exempt from Making Tax Digital for Income Tax without applying if your qualifying income is £20,000 or less, or if you fall into one of a few fixed groups, such as people with no National Insurance number before the tax year starts. Anyone else can apply for an exemption if they are digitally excluded, meaning it is not reasonable for them to use software because of age, health, disability, religious beliefs or where they live. You apply by phone or in writing, and being exempt does not end Self Assessment: you still send a tax return as normal.
This guide sets out who is exempt automatically, who has to apply, what to say in an application, and what happens next. It is written for landlords and sole traders in the UK. If you are not sure whether Making Tax Digital applies to you at all, start with our MTD eligibility check.
Two kinds of exemption
There are two routes. GOV.UK's exemption guidance splits them like this:
- Automatic exemptions. HMRC gives these from the information it already holds. You do not apply.
- Exemptions you apply for. You send an application with supporting information, and HMRC decides.
Each exemption is either permanent, unless your circumstances change, or temporary, lasting until April 2027 at the earliest.
Who is exempt automatically
These exemptions are permanent unless your circumstances change:
- Qualifying income of £20,000 or less. Qualifying income is your self-employment turnover plus your property income, before expenses. Our guide to what counts as qualifying income walks through the sum.
- No National Insurance number before the start of the tax year. GOV.UK's example is someone who received their number on 30 April 2026: they are exempt for 2026 to 2027 even with qualifying income over £50,000.
- Non-resident companies filing an SA700.
- Trusts filing an SA900, including charitable trusts. They keep filing Self Assessment returns.
- Personal representatives of someone who has died. They still complete any outstanding returns. Their own rental or business income may still need Making Tax Digital.
- Lloyd's members who included the SA103L in their 2024 to 2025 return for underwriting business.
- People who could not deal with their tax affairs because of physical or mental incapacity, and who had a UK power of attorney, or a deputy, controller or guardian appointed.
Some automatic exemptions only last until April 2027. They apply if your 2024 to 2025 return included averaging relief claimed on the SA103, the SA107 for trust and estate income, or the SA109 for residence. As announced at Budget 2026, people eligible for qualifying care relief, non-UK resident foreign entertainers and sportspeople, and expected non-resident customers are exempt until further notice, with the law to follow before April 2027. That covers qualifying care relief, which many foster carers claim. If your qualifying income for 2025 to 2026 is over £30,000, you will need to use Making Tax Digital from 2027 to 2028.
Others last beyond April 2027. They apply if your 2024 to 2025 return included the SA102M as a minister of religion, the SA103L as a Lloyd's member with self-employment or property income, Married Couple's Allowance, or Blind Person's Allowance. The government will set a timeline for these later.
Partnerships do not currently need to use Making Tax Digital for Income Tax either. A partnership timeline will be announced later.
Who can apply as digitally excluded
Being digitally excluded means it is not reasonable for you to use software to keep digital records or send quarterly updates and returns. The examples on GOV.UK are:
- your age, a health condition or a disability stops you using a computer, tablet or smartphone for your records;
- you belong to a religious society or order whose beliefs are incompatible with electronic communication or records;
- you cannot get internet access at home or at your business because of where you are, and there is no suitable alternative place to use it.
Other reasons are looked at case by case. Four reasons are not accepted on their own:
- you have always sent a paper return;
- you are not familiar with accounting software;
- you only have a few records to create each year;
- signing up and using the service would take extra time or cost money.
So a landlord with two flats who would simply rather not use an app is unlikely to be exempt. The choice for most people is which software to use, not whether to use it. Our glossary entry on digital exclusion has a short definition you can share with a relative.
Other exemptions you apply for
You can also apply if you expect certain items in a later return. A temporary exemption until April 2027 covers people who expect averaging relief, the SA107 or the SA109 in their 2025 to 2026 or 2026 to 2027 return, and some partners claiming averaging relief. Qualifying care relief now has no end date: Budget 2026 announced it is exempt until further notice, with the law to follow before April 2027. A longer exemption covers people who expect Married Couple's Allowance or Blind Person's Allowance in those returns, and ministers of religion who did not include the SA102M in their 2024 to 2025 return but expect to.
How to apply for an MTD exemption
The GOV.UK application guidance sets out the steps:
- Decide who is applying. You can apply yourself. An agent authorised as your tax agent can apply for you. A friend or family member can apply once you have authorised them, either in writing with your signature or by phone with you present.
- Gather the details. Your National Insurance number, name and address, and an explanation of why you should be exempt with any supporting information. For a digitally excluded application, also say how you send your return now (and whether someone helps you), whether you have an agent and what they do, and any extra support needs.
- Call or write. Use the Self Assessment general enquiries phone number or address. Agents use the Agent Dedicated Line instead. If you write, use the subject "Making Tax Digital for Income Tax: digitally excluded application" or "Making Tax Digital for Income Tax: exemption application", depending on which you want.
- One application covers several reasons. If more than one exemption could apply, send one application and explain each.
One point for people with an accountant: if your agent keeps your digital records and sends your updates using their own software, they may meet the requirements for you. In that case you may not need a digitally excluded exemption. Talk to your agent first.
When to apply
- If you need to start from 6 April 2026 or 6 April 2027, apply now.
- If you need to start from 6 April 2028, apply from summer 2027.
- If you are already signed up and your circumstances change, apply and keep using the service while you wait.
Our MTD deadline countdown shows the next start date and the next quarterly deadline.
What happens after you apply
HMRC aims to reply within 28 calendar days, and it may take longer if it needs more information. While you wait, keep your records and supporting documents as you normally would for Self Assessment.
The decision comes by letter:
- Accepted. The letter says which exemption you have and how long it lasts. If it runs until April 2027, you will not need to sign up until the 2027 to 2028 tax year at the earliest. You stay under the current Self Assessment rules for late filing and late payment penalties.
- Refused. The letter gives the reasons. You can appeal in writing within 30 days of the date on the letter, to the address it gives. Use the subject "Making Tax Digital for Income Tax: digitally excluded appeal" or "Making Tax Digital for Income Tax: exemption appeal". If you need more time, contact Self Assessment general enquiries.
If the answer is no, get ready to sign up. Our step-by-step guide on how to sign up for MTD for Income Tax covers what you need.
If you are not exempt
Most landlords and sole traders over the threshold will not qualify. The work is smaller than it sounds: a digital record of each income and expense (the amount, the date and a category), and a short summary sent every quarter. The MTD quarterly update checklist shows the routine on one page.
VoxaMTD is MTD software for UK sole traders and landlords. It keeps your digital records and sends quarterly updates for self-employment and UK property income, and sending quarterly updates is free. You can import a CSV or Excel file, or connect your bank with open banking. See how quarterly updates work in VoxaMTD.
Sources
- Find out if you can get an exemption from Making Tax Digital for Income Tax (GOV.UK), read on 2 November 2026.
- Apply for an exemption from Making Tax Digital for Income Tax (GOV.UK), read on 2 November 2026.
- Check if you're eligible for Making Tax Digital for Income Tax (GOV.UK), read on 2 November 2026.
This guide is general information, not tax advice.