Category 9
MTD Exemptions
Some people cannot use digital tools and may qualify for an exemption from MTD — most businesses must comply.
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.
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.