HMRC opens MTD exemption applications for £30k taxpayers

HMRC is now accepting Making Tax Digital (MTD) for Income Tax exemption applications from self-employed people and landlords who will come into MTD from Tuesday, 6 April 2027.

This next phase applies to those with qualifying income of more than £30,000 for the 2025/26 tax year.

For most people affected, MTD will be mandatory. However, HMRC recognises that there are circumstances where using digital records and compatible software may not be reasonable.

Who may qualify for an exemption?

A digitally excluded exemption may apply where someone genuinely cannot use digital tools because of their individual circumstances.
HMRC gives examples including:

• age, a health condition or disability which prevents someone from using a computer, tablet or smartphone;
• religious beliefs which are incompatible with using digital communications; or
• being unable to access the internet at home, at a business premises or at a suitable alternative location.

HMRC considers applications case by case.

Simply preferring paper records, being unfamiliar with accounting software, or being concerned about the extra time or cost involved won’t normally be enough to qualify for an exemption.

Are there automatic exemptions?

Some taxpayers don’t need to apply.

For example, anyone without a National Insurance number before the start of the tax year is automatically exempt for that tax year. Certain Lloyd’s members who complete the SA103L supplementary page may also be automatically exempt.

Other specific exemptions can apply depending on information included in a Self-Assessment tax return.

When should an application be made?

Anyone who expects to need an exemption from Tuesday, 6 April 2027 can apply now. HMRC recommends applying before MTD becomes mandatory.

It’s worth reviewing the position early, particularly where digital exclusion may apply, as most landlords and sole traders with qualifying income above £30,000 will still need to comply.

Need help?

MTD exemption rules are based on individual circumstances, so it’s important to check whether an exemption is genuinely available before applying.

Larking Gowen can help review your circumstances and explain the next steps.

Martin Bugg | Director in our Business team | Based in Norwich, Norfolk