Quick answer: HMRC exempts people from MTD for Income Tax if it isn’t reasonably practicable for them to use digital tools, due to age, disability, remote location with no reliable internet, or religious grounds. The exemption isn’t automatic; you need to apply to HMRC directly and explain your circumstances.
MTD for Income Tax assumes access to a reliable internet connection and the ability to use software comfortably. HMRC recognises that isn’t true for everyone, and built a formal exemption route for people it genuinely isn’t practicable for.
Who can apply
- Age: where using digital tools isn’t reasonably practicable because of your age.
- Disability: where a disability makes digital record-keeping and submission impractical.
- Location: remote areas without a reliable internet connection needed to keep digital records or submit updates.
- Religion: where your beliefs are incompatible with using electronic communications or keeping electronic records.
How to apply
The exemption isn’t granted automatically just because you fall into one of these categories; you need to contact HMRC directly and set out your circumstances. If you already have a Self Assessment exemption on similar grounds (for example, from online filing), that’s useful supporting context, but a separate application for MTD for Income Tax specifically is generally required.
What happens if you’re exempt
If HMRC grants the exemption, you continue reporting through the traditional annual Self Assessment process rather than quarterly updates and a final declaration. You don’t need MTD-compatible software, and none of the quarterly deadlines apply to you.
If you’re not sure whether you’d qualify
The bar is genuine impracticability, not simple preference for the old system. If you’re unsure, it’s worth discussing your specific circumstances with an accountant or contacting HMRC directly before assuming either way. For everyone else, our am I affected by MTD checker is a useful starting point.
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