SAM144010 | Making Tax Digital for income tax Self-Assessment: digital exemptions: types of digital exemptions

A customer may be digitally excluded where it is not reasonably practicable for them to use electronic communications or keep electronic records for MTD for ITSA.

Digital exemption is assessed based on the customer’s personal circumstances.

Reasons that may support a Digital Exemption include circumstances such as:

• their age, health condition or disability stops them from using a computer, tablet or smartphone to keep digital records or submit them to HMRC

• they are a practising member of a religious society or order whose beliefs are incompatible with using digital communications or keeping digital records, and they do not use a computer, tablet or smartphone for business or personal use

• they cannot get internet access at their home or business because of their location, and cannot get access at a suitable alternative location

HMRC will not accept their application for an exemption if their only reason for applying is one of the following:

• they previously filed a paper return

• they are unfamiliar with accountancy software

• they have a small number of digital records to create each tax year

• it will take extra time or cost for them to sign up to and use Making Tax Digital for Income Tax

There may be other reasons they may or may not be digitally excluded. HMRC will consider all applications on a case-by-case basis.