Automatic exemptions
- Qualifying income of £20,000 or less (HMRC: exemptions, updated 28 May 2026).
- No National Insurance number before the start of the tax year.
- Trustees, including those filing the SA900, non-resident companies filing the SA700, and personal representatives of someone who has died.
- Lloyd's members using the SA103L page.
- Someone not physically or mentally capable who has a power of attorney or legally appointed representative in place in the UK.
- Partnerships, until HMRC sets out a timeline (HMRC: find out if and when).
Automatic exemptions until April 2027
- Clients whose 2024 to 2025 return included an averaging relief claim, qualifying care relief, the SA107 trust and estate page or the SA109 residence and remittance page (HMRC: exemptions).
- The SA109 deferral was announced in the Spring Statement 2025 technical note to allow time for the changes to taxing non-UK domiciled individuals.
- From 2027 to 2028, a client in this group with qualifying income over £30,000 must use the service unless another exemption applies.
Exemptions a client applies for
- Digital exclusion, set out in the next section.
- A temporary exemption to April 2027 for a client expecting to claim averaging relief, qualifying care relief, or to file the SA107 or SA109 for 2025 to 2026 or 2026 to 2027 (HMRC: exemptions).
- An exemption beyond April 2027 for a client expecting to claim Married Couple's Allowance or Blind Person's Allowance, or to file the SA102M as a minister of religion.
Digital exclusion
HMRC accepts that it is not reasonable for a client to use software where age, health or disability stops them using a computer, tablet or smartphone, where they are a practising member of a religious society whose beliefs are incompatible with digital communication, or where they have no internet access at home or at the business and no suitable alternative (HMRC: exemptions).
HMRC rejects applications based only on having filed paper returns before, not knowing accounting software, having few records, or the time or cost involved. An application made by an agent is still judged on the client's own circumstances.
A client already exempt from Making Tax Digital for VAT as digitally excluded contacts Self Assessment general enquiries with their National Insurance number, VAT registration number and circumstances. A VAT exemption for insolvency does not carry across.
Applying
Choose the route
Call or write to HMRC. Agents use the agent dedicated line (HMRC: apply for an exemption, updated 17 August 2026).
Use the right heading
In writing, head the letter "Making Tax Digital for Income Tax — digitally excluded application" or "Making Tax Digital for Income Tax — exemption application".
Give the details
The client's National Insurance number, name and address, why they qualify and, for digital exclusion, how they file now, the reasons, agent details and any support needs.
Wait for the answer
HMRC aims to respond within 28 calendar days, and longer if it needs more information.
Appeal if refused
The client has 30 days to appeal in writing to the address on the decision, with any new information.
Questions
Does using an agent remove the need for an exemption?
It can. HMRC says an agent using compatible software can meet the requirements for the client, so a client may not need an exemption (HMRC: apply for an exemption).
Where is digital exclusion in the law?
The Income Tax (Digital Obligations) Regulations 2026 exempt a person HMRC has declared digitally excluded, along with trustees, visiting performers, Lloyd's underwriters and ministers of religion.
Does the £20,000 exemption change over time?
The threshold falls in stages. The 2026 regulations set £50,000 for 2024 to 2025, £30,000 for 2025 to 2026, and £20,000 for 2026 to 2027 and later years, so a client with qualifying income of £20,000 or less stays outside the service.
What happens when a temporary exemption ends?
From 2027 to 2028 a client with qualifying income over £30,000 must use the service unless another exemption applies (HMRC: exemptions). Plan their software and sign-up in the same way as the April 2027 group.
What about foster carers?
The Small Business Review outcome removed qualifying care income from the service, and HMRC's exemptions page lists qualifying care relief as a temporary exemption to April 2027.
In Accountin
In Accountin, an exempt client's return is prepared as an SA100 Self Assessment return, and a trust's as an SA900, which is prepared in Accountin and filed elsewhere.
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