MTD for IT Exemption Application Window Opens

31st August 2026

HMRC Opens MTD for IT Exemption Application Window for Those Joining MTD for IT in 2027

HMRC has opened the application process for taxpayers who may qualify for an exemption from Making Tax Digital for Income Tax (MTD for IT) and who are due to join the regime from 6 April 2027. This applies to self-employed individuals and landlords with qualifying income exceeding £30,000 in the 2025/26 tax year.

Most taxpayers within scope will be required to keep digital records and submit quarterly updates using MTD for IT compatible software. Certain individuals may be able to claim an exemption where complying with the digital requirements is not reasonably practicable.

Who is Affected?

Making Tax Digital for Income Tax is being introduced in the following stages:

Qualifying income above £50,000 from April 2026.
Qualifying income above £30,000 from April 2027.
Qualifying income above £20,000 from April 2028.

HMRC will use the relevant Self Assessment tax return to determine whether an individual falls within the scope of MTD for IT.

Who Can Apply for an Exemption?

HMRC’s guidance focuses on taxpayers considered digitally excluded. This may apply where it is not reasonably practicable for an individual to use digital tools to keep records or submit information electronically.

Examples can include:

Age-related difficulties.
Physical or mental disabilities.
Health conditions affecting the use of digital technology.
Lack of internet access.
Certain religious beliefs that are incompatible with electronic communications.

Preferring paper records, having limited accounting knowledge or being unfamiliar with software will not normally be sufficient grounds for exemption.

Existing MTD for IT Exemptions

There are already a number of automatic exemptions, some of which apply permanently and others temporarily. These include certain trustees, personal representatives, taxpayers with qualifying income below the relevant thresholds and specific categories of taxpayers with more complex tax affairs.

The newly opened application process is primarily aimed at taxpayers who need to make a claim to HMRC because they believe they are digitally excluded and therefore unable to comply with MTD for IT requirements.

Don’t Leave It Until the Last Minute

HMRC advises that exemption applications should be made before taxpayers are required to comply with Making Tax Digital for Income Tax. Therefore, those who believe they may qualify should consider their circumstances now rather than waiting until April 2027 approaches.

Taxpayers unlikely to qualify for an exemption can begin preparing for digital record keeping and quarterly reporting requirements.