Who is exempt from Making Tax Digital for Income Tax?
Checked against GOV.UK on 14 August 2026
Short answer
More people than expected. Some exemptions are automatic, some you must apply for, and some run out in April 2027.
HMRC's exemptions are spread across categories that are easy to miss: automatic or applied-for, permanent or temporary. This is all of them on one page.
Automatic and permanent, unless your circumstances change
Qualifying income of £20,000 or less.
No National Insurance number before the start of the tax year. HMRC's example: receiving an NI number on 30 April 2026 with qualifying income over £50,000 for 2024 to 2025 means exemption for the 2026 to 2027 tax year.
Role-based: non-resident companies submitting an SA700; trusts submitting an SA900, including charitable trusts and trusts of non-registered pension schemes; and acting as the personal representative of someone who has died.
On your 2024 to 2025 return: the SA103L page as a Lloyd's member in relation to your underwriting business; or a declaration that you are not physically or mentally capable of providing information to HMRC, where a UK power of attorney is currently in place or a legally appointed deputy, controller or guardian is in place.
Automatic, but only until April 2027
You do not need MTD for the 2026 to 2027 tax year if, on your 2024 to 2025 return, you:
claimed averaging relief on the SA103 page as an individual — as a farmer, market gardener, or someone who personally creates literary or artistic works
claimed qualifying care relief, such as a foster carer or kinship carer
included the SA107 page for income from trusts or estates
included the SA109 page
These end there: you will need MTD from 2027 to 2028 if your qualifying income is above £30,000 on your 2025 to 2026 return.
Automatic, and lasting beyond April 2027
If your 2024 to 2025 return included any of the following, you are automatically exempt and HMRC will set the timeline for you later:
the SA102M page as a Minister of religion of any faith, religion or denomination
the SA103L page as a Lloyd's member with self-employment or property income
a declaration that you received or transferred Married Couple's Allowance (for those born before 6 April 1935)
a declaration that you received or transferred Blind Person's Allowance
Exemptions you have to apply for
Two routes need an application with supporting information: being digitally excluded, and cases where you did not include one of the claims or pages above on your 2024 to 2025 return but reasonably expect to on your 2025 to 2026 or 2026 to 2027 return — including averaging relief claimed as a partner on the SA104 page.
Partnerships
Partnerships do not currently need to use MTD for Income Tax. HMRC will set out the timeline later.
Exempt is not excused
If you are exempt you must continue to report your income and gains in a Self Assessment tax return as normal.
General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.