Who is exempt from Making Tax Digital for Income Tax?

GOV.UK describes two kinds: exemptions HMRC gives automatically, and exemptions you apply for. Each is either permanent (unless your circumstances change) or temporary (until April 2027 at the earliest).

Automatic exemptions

• Qualifying income of £20,000 or less (permanent).
• No National Insurance number before the start of the tax year.
• Partnerships, which are not currently required to use MTD for Income Tax.
• Non-resident companies submitting an SA700, trusts submitting an SA900, and personal representatives of someone who has died.
• Lloyd's members (SA103L), and people not physically or mentally capable of providing information to HMRC who have a power of attorney or a legally appointed deputy, controller or guardian.

Digital exclusion: you must apply

It is not automatic. It applies where, because of personal circumstances, it is not reasonable to use compatible software. Examples on GOV.UK: age, health or disability that stops you using a computer or smartphone, certain religious beliefs, or no internet access at your home or business because of where it is.

What does not qualify on its own

• Having filed a paper return, being unfamiliar with accounting software, having few records, or extra time or cost.
• Being exempt from VAT Making Tax Digital because of insolvency.

If an exemption is accepted you still keep records and submit annual Self Assessment tax returns as normal. To see where you stand on income, use the checker or read the thresholds.

Source: GOV.UK, "Find out if you can get an exemption from Making Tax Digital for Income Tax", read 10 October 2026.