You can be exempted from Making Tax Digital for Income Tax if it is not reasonably practicable for you to use software because of age, health, disability or location, or if your religious beliefs are incompatible with keeping electronic records. There is no form: you phone or write to HMRC, explain how you file now, why you cannot use software, and what any agent does for you. HMRC aims to reply within 28 days, and a refusal can be appealed within 30 days.

What does “digitally excluded” mean in law?

The test is in paragraph 14 of Schedule A1 to the Taxes Management Act 1970. A person is digitally excluded if either:

  • they are a practising member of a religious society or order whose beliefs are incompatible with using electronic communications or keeping electronic records, or
  • for any reason, including age, disability or location, it is not reasonably practicable for them to use electronic communications or to keep electronic records

Regulations 18 to 20 of the Income Tax (Digital Obligations) Regulations 2026 (SI 2026/336) set out the procedure. You give HMRC notice that you believe you are excluded. If HMRC is satisfied, it issues an “exclusion notice” stating the date you became excluded and, where relevant, the date the exclusion ended. While the notice is in place, the digital obligations do not apply. Regulation 20 also treats as excluded someone who cannot meet HMRC’s identity verification conditions for reasons beyond their control.

This exemption is separate from the automatic exemptions and deferrals described in who is exempt from MTD for Income Tax. It is never applied automatically.

Which circumstances does HMRC accept?

HMRC’s guidance gives three examples:

  • Age, health or disability that stops you using a computer, tablet or smartphone to keep digital records or submit them.
  • Religion, where you are a practising member of a religious society or order whose beliefs are incompatible with digital communications or records, and you do not use a computer, tablet or smartphone for business or personal use.
  • Location, where you cannot get internet access at home or at your business because of where you are, and cannot get access at a suitable alternative location.

The religious ground has a practical condition attached. Someone who uses a smartphone for personal messages will struggle to show their beliefs are incompatible with digital records. The location ground is also strict: poor broadband at home is not enough if there is a suitable alternative location.

HMRC says it will consider applications case by case and that other reasons may qualify.

Which reasons will HMRC refuse?

HMRC will not accept an application where the only reason is that you:

  • previously filed a paper return
  • are unfamiliar with accountancy software
  • have only a small number of records to create each year
  • will face extra time or cost in signing up and using MTD

These grounds are common in practice, particularly from older landlords with one or two properties. They are not enough on their own, though they may form part of a wider case built on age or health.

Do you need to apply if an agent does the work?

Often not. HMRC points out that if your agent uses compatible software to keep your digital records and send them, the agent meets the MTD requirements for you, and you may not need an exemption. HMRC asks you to speak to your agent before applying.

Where someone else applies for you, whether an agent, friend or family member, the decision is still based on your own circumstances. An agent must be authorised as your tax agent and must apply for each client individually. A friend or family member needs your authority first, either in a signed letter to HMRC or by phone with you present to give verbal consent.

How do you apply and what evidence is needed?

You call or write to HMRC using the Self Assessment general enquiries contact details. Agents use the Agent Dedicated Line for Self Assessment. If writing, use the subject title HMRC specifies, which combines “Making Tax Digital for Income Tax” with “digitally excluded application”.

For any exemption you must give your National Insurance number, name and address, and explain why you should be exempt with supporting information. For digital exclusion HMRC also asks for:

  • details of how you currently submit your tax return, including whether someone helps you
  • the reason you think you are digitally excluded, with any information supporting it
  • whether you have an agent, and what the agent will do
  • any additional needs, so HMRC can provide the right support

HMRC does not publish a list of required documents, but it may verify what you say and ask for more. In practice the explanation should be specific: what the condition is, how it stops you using a device, and why help from someone else does not solve it. Where there is a medical condition, a letter from a doctor or care professional will support the application. Where the ground is location, evidence of attempts to get a connection is useful. If you think more than one exemption applies, send one application explaining each.

When should you apply?

Apply before you need to start. HMRC’s timetable is:

MTD required from When to apply
6 April 2026 Now
6 April 2027 Now
6 April 2028 From summer 2027

If you are already signed up and your circumstances change, apply and keep using MTD while you wait. If HMRC previously accepted that you are digitally excluded from Making Tax Digital for VAT, contact Self Assessment general enquiries with your National Insurance number, VAT registration number and the reason for the VAT exclusion. If nothing has changed, HMRC will confirm the Income Tax exemption without a fresh application.

Regulation 19(3) adds a continuing duty. If you gave notice without saying when the exclusion would end and later believe it has ended, you must tell HMRC within 3 months of first having reason to believe that.

What happens after you apply?

HMRC aims to respond within 28 calendar days, longer if it needs more information. Meanwhile you must keep records as you normally would for Self Assessment, and HMRC suggests preparing to use MTD in case the application fails.

If accepted, the letter states the type of exemption and how long it lasts. A digital exclusion may be permanent, depending on circumstances. You continue to file a Self Assessment return in the usual way.

If refused, the letter explains why and how to appeal. You can appeal up to 30 days after the date of the letter, in writing to the address on the letter, using the title HMRC specifies, which combines “Making Tax Digital for Income Tax” with “digitally excluded appeal”, with any new information. If you need longer, contact HMRC before the deadline; our page on late appeals to HMRC explains what happens if the time limit is missed.

How might a real application look?

Illustration only. Margaret is 84 and lets two flats, with gross rent of £36,000. She has macular degeneration and cannot read a screen. Her son posts her paper records to an accountant each year. A strong application would describe the eye condition and its effect, enclose a letter from her consultant, explain that her son does not live locally, and state what the accountant does. HMRC may respond that the accountant could keep digital records and file for her, so the application should also say whether the accountant has agreed to take on the quarterly cycle. If the accountant will do so, an exemption may not be needed at all.

What mistakes weaken an application?

  • Giving only cost, unfamiliarity or a small number of records as the reason.
  • Claiming the religious ground while using a smartphone or computer for personal use.
  • Applying without considering whether an agent can meet the requirements.
  • Not saying how returns are filed now. HMRC asks for this specifically.
  • Stopping digital records while the application is pending after already signing up.
  • Missing the 30 day appeal window.

For the wider rules on who must join and when, see Making Tax Digital for Income Tax.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.