Am I Exempt from Making Tax Digital? The Full List for 2026

Not everyone is in scope

Making Tax Digital applies to a lot of people, but not everyone. There are real exemptions. Some are automatic. Others you need to apply for.

Automatic exemptions

You're automatically exempt if any of these apply:

• Your income is below the threshold. Under £50,000 gross qualifying income in 2024/25? You're not in the first wave. Under £30,000? Not until 2028. Under £20,000? Not currently in scope at all.
• You don't have a National Insurance number. Rare, but it's on the list.
• You're a minister of religion. Specific exemption written into the rules.
• You receive Married Couple's Allowance. This only applies to couples where at least one partner was born before 6 April 1935.
• You claim Blind Person's Allowance.
• You're a Lloyd's underwriter. The Lloyd's market has its own reporting arrangements.
• You're a foster or kinship carer using qualifying care relief with no other self-employment income.

If any of these apply, you don't need to do anything. You're out.

Temporary exemptions (until April 2027)

Some categories are temporarily exempt for the first year:

• Farmers and artists using averaging relief. If you spread your profits over multiple years using averaging, you're deferred until April 2027.
• Carers using qualifying care relief who also have other income.
• People with trust or estate income.
• Non-UK residents with UK property or trading income.

These exemptions give an extra year to get ready, but they don't mean you're off the hook entirely.

Digital exclusion exemptions (you must apply)

If you truly cannot use digital tools, you can apply for an exemption. HMRC will consider:

• No internet access. If you live in an area with no reliable broadband and can't get online.
• Age, health, or disability. If a physical or mental health condition makes using computers or software impractical.
• Religious reasons. If your religious beliefs prevent you from using electronic systems.

To apply, you need to contact HMRC and explain your situation. They'll assess it on a case-by-case basis. You can find the process by searching "exemption from Making Tax Digital" on GOV.UK.

What does NOT qualify as an exemption

A few things people assume will get them out of MTD that won't:

• "I don't know how to use software." Not an exemption. HMRC expects you to learn or to ask for help.
• "My affairs are very simple." Doesn't matter. If your income is above the threshold, you're in.
• "It costs too much." There are free software options available. Cost isn't accepted as grounds for exemption.
• "I prefer paper." Personal preference isn't a factor.
• "My accountant does everything." Your accountant can file for you, but you (or they) still need to use MTD-compatible software.

Limited companies and partnerships

Limited companies are not covered by MTD for Income Tax. They already file Corporation Tax returns digitally through a separate system.

Partnerships are not yet included. HMRC has said partnerships will be brought into MTD at a later date but hasn't confirmed when.

If you trade through a limited company, MTD for Income Tax doesn't apply to you. If you're in a partnership, you're exempt for now but should keep an eye on announcements.

Not sure? Check

If you're uncertain whether you qualify for an exemption, the simplest route is to check GOV.UK or ring HMRC's MTD helpline. Better to find out now than to assume you're exempt and discover you weren't.

If you are in scope, start with our guide to what Making Tax Digital is and the full list of deadlines for 2026/27.