Guidance

Apply for an exemption from Making Tax Digital for VAT

Check if you can apply for an exemption from Making Tax Digital for VAT and submitting your VAT Returns using software.

• From: HM Revenue & Customs
• Published: 7 January 2020
• Last updated: 4 January 2023 — See all updates

All VAT registered businesses should now be signed up for Making Tax Digital for VAT unless you are exempt or have applied for exemption.

Check if you’re already exempt

You’re automatically exempt from Making Tax Digital for VAT and do not need to apply if:

• you’re already exempt from filing VAT Returns online
• you or your business are subject to an insolvency procedure

Apply for an exemption

You can apply if it’s not reasonable or practical for you to use computers, software or the internet to follow the rules for Making Tax Digital for VAT.

This could be because:

• of your age, a disability or where you live
• you object to using computers on religious grounds
• of any other reason why it’s not reasonable or practical

HMRC will consider each application on a case by case basis.

Apply

To apply, you must call or write to HMRC. You’ll need:

• your VAT registration number
• your business name and address
• details of how you currently file your VAT Return
• the reason you think you’re exempt from Making Tax Digital
• authorisation from the business (if you’re applying on someone’s behalf)

You’ll get a letter with HMRC’s decision. Until then, continue filing VAT Returns the way you usually do.

Published 7 January 2020
Last updated 4 January 2023 + show all updates

1. 4 January 2023

   All VAT registered businesses should now be signed up for Making Tax Digital for VAT. HMRC will automatically sign up all remaining businesses. You no longer need to do it yourself.

2. 27 September 2022

   We have updated the guide to confirm that from 1 November 2022, you will not be able to use your existing VAT online account to send quarterly or monthly VAT returns. You’ll need to sign up to Making Tax Digital (MTD) and use compatible software to keep your VAT records and file your VAT returns.

3. 1 April 2022

   Information has been updated to reflect the fact that VAT registered businesses with taxable turnover below the registration threshold will also need to follow the Making Tax Digital rules from 1 April 2022.

4. 7 January 2020

   Added translation