MTD Exemptions 2026 —
Who Qualifies and How to Apply

Making Tax Digital for Income Tax is mandatory for most sole traders and landlords above the income thresholds. But there are several categories of taxpayer who are permanently exempt, others who can apply for an exemption, and a further group who qualify for a one-year deferral.

This guide covers every exemption category confirmed by HMRC, what evidence you need, how to apply, and — critically — what you must not do if you think you might qualify.

Three Types of MTD Exemption

HMRC has confirmed three distinct categories of relief from MTD obligations:

Disability and Health Condition Exemption

If a disability or health condition means you genuinely cannot use digital tools or keep digital records, you can apply for a permanent digital exclusion exemption. This is one of the most commonly applied-for exemptions and HMRC has a defined process for it.

What conditions qualify?

HMRC does not publish a list of qualifying conditions — they assess each case individually. Conditions that have been accepted include:

• Visual impairments that prevent using screens even with assistive technology
• Severe cognitive impairments (dementia, acquired brain injury) affecting digital capability
• Severe motor conditions (advanced Parkinson's, severe arthritis) preventing keyboard or touchscreen use
• Mental health conditions where digital engagement causes clinically significant harm
• Learning difficulties that make digital tools impossible to use independently

What evidence do you need?

• A letter from your GP, consultant, or occupational therapist confirming your condition and its impact on digital capability
• Any relevant medical documentation (diagnosis letters, assessment reports)
• If you use a carer, a statement from them about your day-to-day digital limitations

Age-Related Digital Exclusion

There is no automatic age exemption from MTD — HMRC has not set an age above which you are automatically exempt. However, if your age means you are genuinely unable to use digital tools effectively, you can apply for an age-related digital exclusion exemption.

HMRC assesses these applications individually, looking at your specific circumstances rather than applying a blanket rule. Being elderly and finding technology difficult is not automatically sufficient — you need to demonstrate genuine inability, not just a preference for paper-based methods.

If you are applying on age-related grounds, evidence that strengthens your application includes:

• A GP letter confirming age-related cognitive or physical limitations affecting digital use
• Evidence that you have no family member or support worker able to assist with digital record-keeping
• Confirmation that you have no computer, tablet, or smartphone and no access to one

No Reliable Internet Access

If you live in a location where reliable internet access is not reasonably available, you can apply for a digital exclusion exemption on grounds of remote location.

HMRC's test is whether reliable internet is reasonably available to you — not whether you currently have a broadband connection. This exemption is designed for genuinely remote locations — rural Scotland, the Welsh hills, certain coastal and island communities — where infrastructure limitations make reliable connectivity impossible, not for those who have chosen not to connect.

Evidence that supports this application:

• Confirmation from your internet service provider that broadband is unavailable at your address
• Ofcom coverage maps showing your property is in a not-spot area
• Evidence that mobile data coverage at your location is insufficient for reliable use

Religious Objection Exemption

Members of religious groups whose beliefs genuinely prevent electronic record-keeping or internet use can apply for an MTD exemption on religious grounds. HMRC does not limit this exemption to specific religions — the test is whether you have a genuine religious belief that prevents electronic compliance, not whether you belong to a particular faith.

This exemption has historically been used by members of communities such as:

• Certain Old Order Amish and Mennonite communities
• Some traditional Jewish communities with restrictions on electricity use during religious periods
• Other religious groups with doctrinal restrictions on technology use

Evidence HMRC may request:

• A letter from a religious leader or community elder confirming your beliefs and their practical effect
• A personal statement explaining how your religious beliefs prevent digital record-keeping
• Evidence of active membership in your religious community

Temporary Hardship Exemption

If exceptional circumstances temporarily make digital compliance impossible, you can apply for a time-limited hardship exemption. This is not a permanent exemption — it gives you time to resolve your circumstances before being required to comply with MTD.

Qualifying circumstances may include:

• Serious illness or hospitalisation that prevents digital record-keeping for an extended period
• A bereavement that has severely affected your ability to manage your affairs
• Other exceptional personal circumstances assessed by HMRC on a case-by-case basis

How to Apply for an MTD Exemption — Step by Step

1. Check you actually need an exemption

   First confirm that you are actually above the MTD threshold and would otherwise be required to register. Use our free MTD calculator to verify your qualifying income. There is no point applying for an exemption if you are below the threshold anyway.
2. Gather your evidence

   Before contacting HMRC, pull together your supporting documentation — GP letter, ISP confirmation, religious community letter, or whatever is relevant to your ground. HMRC will ask for evidence when they assess your application. Having it ready speeds up the process significantly.
3. Apply through your HMRC online account

   Log into your HMRC online account at gov.uk/guidance/apply-for-an-exemption-from-making-tax-digital-for-income-tax. Complete the exemption application form, selecting the relevant ground (disability, age, internet access, religious belief, or hardship). Upload your supporting documents where prompted.
4. Alternatively, apply by phone or post

   If you cannot access the online service (which would itself suggest grounds for an exemption), you can apply by calling the HMRC Self Assessment helpline or by writing to HMRC. State clearly that you are applying for a Making Tax Digital digital exclusion exemption, your reason, and your UTR number.
5. Wait for HMRC's decision

   HMRC will assess your application and write to you with their decision. If approved, you will receive confirmation that you are exempt from MTD and can continue filing Self Assessment returns as normal. If refused, you will have the right to appeal the decision.
6. Continue Self Assessment as normal

   If your exemption is approved, you are not required to use MTD software or submit quarterly updates. You continue to file your annual Self Assessment return by 31 January each year as before. Your exemption is recorded on your HMRC record.

Automatic One-Year Deferrals — April 2027

The following groups automatically defer to Phase 2 (April 2027) without needing to apply. HMRC identifies these taxpayers from existing records.

If you fall into one of these categories and HMRC has not confirmed your deferral, contact HMRC proactively. Do not assume the deferral is in place without confirmation.

What If Your Exemption Application Is Refused?

If HMRC refuses your exemption application, you have the right to appeal. The appeal process involves:

• Requesting a review of the decision within 30 days of receiving HMRC's refusal letter
• Providing additional evidence if your original application lacked sufficient documentation
• If the review upholds the refusal, appealing to the First-tier Tribunal (Tax)

While your appeal is in progress, you should register for MTD to avoid accumulating penalty points — and then cease submissions if your appeal is subsequently successful.

Frequently Asked Questions

Related Guides