SALF1500 | Self Assessment: the legal framework: Making Tax Digital: Exemptions: Exemption for persons based on claim to relief or chargeability to tax

A relevant person is exempt from digital obligations for a tax year if they are a company chargeable to tax under Part 2 of ITTOIA (trading income) or were entitled to certain tax reductions or allowances in the previous filing tax year in relation to the digital obligation tax year, or have given notice satisfying HMRC that they reasonably expect to be entitled at any point after that tax year up to and including the digital obligation tax year.

Relevant Reductions and Allowances are:

• Marriage Allowance:

  • Under section 45(1) of ITA 2007 (for marriages before 5 December 2005)

  • Under section 46(1) of ITA 2007 (for marriages and civil partnerships on or after 5 December 2005)

• Blind Person's Allowance:

  • Under section 38(1) of ITA 2007

  • Transferred allowance under section 39(2) of ITA 2007

If the person becomes entitled to one of these allowances after a digital obligation has already arisen for tax year Y, the obligation is taken never to have arisen.