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HMRC internal manual

Self Assessment: the legal framework

From:
HM Revenue & Customs
Published:
18 April 2016
Updated:
16 December 2021 - See all updates

SALF1480 - Self Assessment: the legal framework: Exemptions: Exemptions for persons of specified description

There are a limited number of exemptions for people in certain specified categories where the application of Making Tax Digital (MTD) would be unduly onerous or technically complex.

A digital obligation does not apply to a relevant person for a digital obligation tax year if the person either:

  • at any point during the previous filing tax year in relation to the digital obligation tax year was any of the descriptions below
  • after the end of the previous filing tax year in relation to the digital obligation tax year has started to be any of the descriptions below and has given notice satisfying HMRC of this fact

(The “previous filing tax year” is the latest tax year the person was required to deliver a return and had to do so before the start of the tax year so will depend on when the notice to file a return was given.)

This applies to the following categories unless the power has been revoked or come to an end or, in certain circumstances, the donor is still capable of providing financial information to HMRC. Where this exemption applies, any obligation which has arisen is to be treated as never having arisen.

Specified descriptions

  • A donor of:
    • a lasting power of attorney within the meaning of s.9(1) of the Mental Capacity Act 2005 (lasting powers of attorney)
    • an enduring power of attorney under Schedule 4 of the same Act (characteristics of an enduring power of attorney)

    unless the power has been revoked or come to an end, or the donor is still capable of providing financial information to HMRC.

  • An individual who has granted:

    • a continuing power of attorney under section 15(1) of the Adults with Incapacity (Scotland) Act 2000 (creation of continuing power of attorney)

    • a welfare power of attorney under section 16(1) of the Adults with Incapacity (Scotland) Act 2000 (creation and exercise of welfare power of attorney)

    unless the power has been revoked or come to an end, or the donor is still capable of providing financial information to HMRC.
  • A donor of an enduring power which meets the requirements of Article 4(1) of the Enduring Powers of Attorney (Northern Ireland) Order 1987 (characteristics of an enduring power), unless the power has been revoked or come to an end, or the donor is still capable of providing financial information to HMRC
  • A person in respect of whom a deputy has been appointed under section 16(2)(b) of the Mental Capacity Act 2005 (powers to make decisions and appoint deputies: general) unless the power has been revoked or come to an end
  • An adult in respect of whom a guardianship order has been made within the meaning of section 58(1) of the Adults with Incapacity (Scotland) 2000 (disposal of application); this does not include an order which has been recalled, terminated or come to an end
  • A patient in respect of whom a controller has been appointed under Article 101(1) of the Mental Health (Northern Ireland) Order 1986 (power to appoint controller); this does not include the appointment of a controller who has been discharged, or an appointment which has come to an end
  • Someone who is a minister of a religious denomination
  • An underwriting member of Lloyd’s