SALF1410 | Self Assessment: the legal framework: Making Tax Digital: Exemptions: Exemptions

There are different reasons why a relevant person or relevant activity may be exempt from Making Tax Digital (MTD) for Income Tax. There are automatic exemptions and those a person will need to apply for by notice to HMRC. Exemptions can either be permanent until such times as circumstances change, or temporary until April 2027 at the earliest.

Exemptions include:

• Exclusion exemption (digital exclusion, unable to verify identity)

• Exemptions by reference to amount of income (e.g. income below qualifying amount)

• Exemptions by reference to description of relevant activity (e.g. trustee, visiting performer, qualifying care relief) and overseas activities of non-residents

• Exemptions by reference to description of person (e.g. powers of attorney, minister of religion, Lloyds underwriters, no National Insurance number)

• Exemptions based on claim to relief or chargeability to tax (e.g. companies chargeable to IT, reductions for married couples and blind persons allowance)

• Temporary exemptions for the tax year 2026-27 (e.g. trust, settlement or estate income, visiting performers providers of qualifying care, residence and foreign income etc, averaging profits

Further details are given on the following page.