SAM144020 - Making Tax Digital for income tax Self-Assessment: digital exemptions: applying for a digital exemption
Who can apply
A customer can apply for an exemption themselves.
They can also apply for an exemption on behalf of someone else if they are either:
- an authorised agent
- a friend or family member with their authorisation
If they have an agent, friend or family member applying on their behalf, the exemption will still be based on their personal circumstances.
If their agent uses compatible software to keep digital records and submits them to HMRC, they will be able to meet the requirements for Making Tax Digital for Income Tax on their behalf.
They should speak to their agent about this, as they may not need to apply for a digitally excluded exemption.
If they are acting on behalf of someone else
If they are an agent, they must:
- be authorised to act as a tax agent on behalf of each client they are applying for
- apply for each client individually based on their personal circumstances
If they are a friend or family member, they need authorisation from the person they are applying on behalf of, before they apply. This can be either:
- by writing to HMRC for authorisation — they will need to include the signature of the person they are acting on behalf of
- by phoning HMRC — the person they are acting on behalf of, will need to be there to give verbal authorisation
When to apply
A customer should apply before they, or the person they are applying on behalf of, needs to use Making Tax Digital for Income Tax.
If they are applying for an exemption because they think they are digitally excluded, they should apply for an exemption based on when they need to use Making Tax Digital for Income Tax.
If they need to use Making Tax Digital for Income Tax from:
- 6 April 2026 — they can apply now
- 6 April 2027 — they should apply from summer 2026 onwards
- 6 April 2028 — they should apply from summer 2027 onwards
What they will need
What a customer needs to apply for an exemption, depends on if they are applying for themselves or applying on behalf of someone else.
If they think they are eligible for multiple exemptions, they should submit a single application explaining why each exemption applies.
Customer applying for themselves
They will need:
- their National Insurance number
- their name and address
- to explain why they think they should be exempt from Making Tax Digital for Income Tax, including any additional information to support their application
HMRC may request additional information to make a decision on their application.
If they are applying for a digitally excluded exemption, they also need to tell us:
- details of how they currently submit a tax return (including if someone else helps)
- the reason they think they are digitally excluded, including any information to support this
- if they have an agent (for example, an accountant) and what the agent will do
- any additional needs so HMRC can provide the right support
Customer applying on behalf of someone else
If they are applying for an exemption on behalf of someone else, they will need to provide their details.
To apply on someone else’s behalf, a customer will need:
- to tell us how they are connected to the applicant (for example, if they are their agent or a personal representative)
- their National Insurance number
- their name and address
- to explain why they think the applicant should be exempt from Making Tax Digital for Income Tax, including any additional information to support their application
HMRC may request additional information to make a decision on their application.
If they are applying for a digitally excluded exemption for someone else, they will also need to tell us:
- details of how they currently submit a tax return (including if someone else helps)
- if they have an agent (for example, an accountant) and what the agent will do
- about any additional needs so we can provide the right support
If the customer is exempt from using Making Tax Digital compatible software for VAT returns
They should contact Self-Assessment general enquiries by phone or in writing, if HMRC previously confirmed they are exempt from sending VAT returns using Making Tax Digital compatible software because they are digitally excluded.
They’ll need to tell us:
- their National Insurance number
- their VAT registration number
- the reason they are digitally excluded from sending VAT returns using Making Tax Digital compatible software, and if their circumstances have changed
If their circumstances have not changed, we’ll confirm that they are also exempt from Making Tax Digital for Income Tax. If they have changed, they’ll need to apply for an exemption.
If their VAT exemption is due to insolvency
If their VAT exemption is because they are going through an insolvency procedure and they are signed up to Making Tax Digital for Income Tax, they will not be exempt and should continue to use the service.
How to apply
If the customer wants to apply for an exemption for themselves or on behalf of someone else, they must either call or write to HMRC.
If they write to us, they should use one of the following subject titles on their letter:
- ‘Making Tax Digital for Income Tax — digitally excluded application’ if applying for a digitally excluded exemption
- ‘Making Tax Digital for Income Tax — exemption application’ if applying for any other exemption
If the customer or primary agent has further questions regarding their eligibility for digital exemption follow Making Tax Digital Exclusion for ITSA quarterly returns - Step 1