SelfSubmit is designed to help you stay compliant with HMRC Making Tax Digital requirements. You remain responsible for ensuring the information you submit is accurate.

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MTD Exemptions

Exemptions from MTD are narrow. Most people above income thresholds must comply. Below threshold you are not required to join MTD ITSA yet.

  • Exemptions are not automatic — HMRC must agree
  • Digital inability for age, disability, or religion may qualify
  • Below-threshold taxpayers are outside MTD ITSA scope for now

What it is

HMRC allows exemptions in limited circumstances, for example if you cannot use digital tools due to disability, age, remoteness of location, or religious grounds. Exemptions are not automatic — you must apply or qualify under HMRC rules.

Being uncomfortable with technology is usually not enough on its own. VAT MTD exemptions are assessed separately. If exempt, you may still need to keep records and file through other channels HMRC specifies.

Who it applies to

Businesses below income thresholds are not required to join MTD ITSA yet. Those above thresholds who genuinely cannot use digital tools may seek an exemption.

What you need to do

  • Check whether your income is below the threshold.
  • If you believe you qualify for exemption, follow HMRC’s application process.
  • Otherwise, use compatible software and keep digital records.

Key points

  • Being unfamiliar with technology is not usually enough for an exemption alone.
  • VAT MTD has separate exemption rules from income tax MTD.

Common mistakes to avoid

  • Assuming exemption without applying or checking income
  • Confusing VAT and income tax exemption rules
  • Assuming exemption based on informal advice rather than HMRC confirmation

How SelfSubmit helps

If your status is unclear, maintain digital records in SelfSubmit while you confirm requirements on GOV.UK or with a qualified adviser.

Further reading