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Making Tax Digital exemptions

Reviewed by Sajid Aman BSc (Hons) FCA BFP · Updated · 4 min read

You can be exempt from Making Tax Digital if it is not reasonably practicable for you to use digital tools, because of age, disability, location or lack of internet access, or if you are a practising member of a religious society whose beliefs are incompatible with electronic communications. Exemption must be applied for.

Automatic exclusions

Some people are outside MTD without applying for anything. Trustees, personal representatives of deceased persons, Lloyd’s underwriters, non-resident companies and those without a National Insurance number by a given date are all excluded.

Partnerships are not yet in scope. HMRC has said they will join at a later date, not yet announced.

Digital exclusion

The main route. You must show it is not reasonably practicable for you to use digital tools to keep records or file, for reasons of age, disability, location or another genuine factor.

Lack of broadband in a genuinely remote location qualifies. Finding software annoying does not. HMRC assesses each application individually and has historically applied the same test used for MTD for VAT.

Religious grounds

If you are a practising member of a religious society or order whose beliefs are incompatible with using electronic communications or keeping electronic records, you can apply on that basis.

How to apply

Applications are made to HMRC directly, with evidence. There is no fixed form in the way there is for some claims. HMRC asks for your circumstances and the reasons digital filing is not practicable for you.

Apply early. An application made close to a deadline does not suspend the obligation to file.

If you are refused, you can ask for a review and then appeal to the First-tier Tribunal. We can handle the application and any appeal on your behalf.

This guide is general information, current at 9 November 2026. Tax rules change and depend on your circumstances. Please take advice before acting on it.

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Questions about this

Who is exempt from Making Tax Digital?

Those who are digitally excluded by age, disability, location or lack of internet, practising members of certain religious societies, and some automatically excluded groups including trustees and personal representatives.

Are partnerships in Making Tax Digital?

Not yet. HMRC has said partnerships will be brought in at a later date which has not been announced.

How do I apply for an MTD exemption?

You apply directly to HMRC setting out your circumstances and why digital record keeping and filing are not reasonably practicable for you. Apply well before your start date.

Can I appeal if HMRC refuses my exemption?

Yes. You can ask HMRC for a review and then appeal to the First-tier Tribunal.

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