Making Tax Digital Exemptions: Who Qualifies and How to Apply

What is a Making Tax Digital exemption?

A Making Tax Digital exemption is a formal grant from HMRC confirming that you do not have to use digital MTD software to report your income. HMRC calls this “digitally excluded” status. It is granted on a case-by-case basis where it would not be “reasonably practicable” for you to use digital tools.

The legal basis for exemptions comes from the Finance (No. 2) Act 2017 and the subsequent Making Tax Digital regulations. HMRC has the discretion to exempt individuals where digital compliance is unreasonable given their specific circumstances.

Key points about MTD exemptions:

• They are not automatic. You must apply. Simply having a reason that might qualify does not give you exemption status unless HMRC has formally granted it.
• They are individual. An exemption applies to you personally, not to your properties or your tax affairs in general.
• You still file tax returns. Exempt status means you do not have to use MTD software — it does not mean you have no tax obligations. Exempt individuals continue to file traditional Self Assessment returns.
• They can be reviewed. HMRC may reassess your exemption if your circumstances change.
• They are genuinely rare. The bar is “not reasonably practicable” — not “difficult” or “inconvenient.” Most people who think they might qualify will not.

Before applying for an exemption, consider whether assistive technology might resolve the barrier. Screen readers, voice control software, large-text displays, and other accessibility tools can make digital software usable for many people with disabilities or health conditions. HMRC will expect you to have considered these options before concluding that digital compliance is genuinely impossible.

Who qualifies for a Making Tax Digital exemption?

HMRC will grant a Making Tax Digital exemption where it is genuinely not reasonably practicable for you to use digital software — due to disability, health conditions, age-related difficulties, religious or ethical objections, or persistent lack of internet access.

HMRC's guidance identifies the following grounds on which it will consider an exemption:

Disability preventing use of digital devices

A physical disability that prevents you from using a computer, tablet, or smartphone may qualify. This includes:

• Blindness or severe visual impairment where assistive technology is also not effective
• Severe arthritis or other joint conditions preventing keyboard or touchscreen use
• Motor disabilities affecting fine motor control to the extent that even assistive input devices are impractical
• Conditions causing uncontrollable tremors that prevent reliable digital input

For visual impairment specifically, HMRC will expect evidence that screen reader software and magnification tools have been tried and are insufficient. Many visually impaired people use accessible technology very effectively — an exemption will only be granted where this genuinely does not work for your specific condition.

Health conditions making digital tools impractical

A health condition that makes sustained use of digital devices impractical may qualify. This includes both physical and mental health conditions. The condition must be severe enough that it is genuinely not practicable to use software — not merely uncomfortable or tiring. Examples:

• Severe chronic pain conditions affecting extended sitting and computer use
• Neurological conditions causing severe cognitive impairment
• Conditions causing extreme photosensitivity making screen use impossible
• Severe mental health conditions where digital engagement is genuinely impractical (see the mental health section below)

Age-related difficulties with technology

Older landlords who have never used digital technology and for whom learning it would be unreasonably burdensome may qualify. HMRC recognises that for some elderly people, digital technology is a genuine barrier. However, age alone is not sufficient — millions of older people use digital tools routinely. The exemption applies where age, combined with other factors, makes digital compliance genuinely unreasonable.

An elderly landlord who has always managed their affairs in writing and has no access to digital support (no family, no support networks, and health conditions compounding the barrier) is more likely to qualify than a 70-year-old with a smartphone and internet access who simply prefers paper.

Religious or ethical objections

Certain religious communities maintain a lifestyle that excludes the use of electronic devices on principle. HMRC accepts this as a ground for exemption where the objection is genuine, consistent, and well-evidenced. This is intended for communities where the avoidance of electronic technology is a sincere and consistent religious or ethical principle — not a selective preference.

Applicants on religious grounds should be prepared to explain their community, their beliefs, and how those beliefs are consistently applied in daily life. An application from someone who uses a smartphone and online banking but objects to MTD software specifically will not succeed on religious grounds.

Remoteness — no reliable internet access

If you live in a location where reliable broadband and mobile internet are genuinely unavailable, HMRC may grant an exemption. The key requirements are:

• The lack of access is persistent, not just occasional slow speeds or outages
• No fixed broadband is available at your address
• No mobile broadband (4G or 5G) is available with sufficient reliability
• Satellite broadband options have been considered and are not practically available or accessible

Simply having slow internet or intermittent connectivity is not sufficient. HMRC expects you to demonstrate that no internet connection is available at your property that would allow reliable digital record-keeping and quarterly submissions. Given that most of the UK has at least some mobile coverage, this ground is genuinely narrow.

Who does NOT qualify for a Making Tax Digital exemption?

HMRC will not grant an exemption on the grounds that you have always filed paper returns, find digital technology inconvenient, object to the cost of software, or simply prefer the old system.

Understanding what does not qualify is just as important as understanding what does. HMRC is explicit in its guidance that the following are not valid exemption grounds:

The common thread is that exemptions are reserved for situations of genuine impossibility or unreasonable burden — not for situations of inconvenience, cost, or preference. HMRC's view is that the digital tools available are accessible enough that most people can use them with appropriate support.

How to apply for a Making Tax Digital exemption

To apply for a Making Tax Digital exemption, contact HMRC directly by phone or in writing, explain your grounds, and provide supporting evidence. There is no online form. Apply as early as possible — ideally well before the April 2026 deadline.

Contact HMRC by phone

The HMRC Self Assessment helpline handles MTD exemption applications:

• Phone: 0300 200 3310
• Textphone: 0300 200 3319
• Lines open: Monday to Friday, 8am to 6pm

When you call, explain that you are in scope for Making Tax Digital and wish to apply for a digitally excluded exemption. Be prepared to explain your grounds clearly and concisely. HMRC may be able to grant a straightforward exemption over the phone for clear-cut cases, or they may ask you to submit your application in writing.

Apply in writing

For more complex cases, or where you want to submit supporting evidence, writing to HMRC is preferable. Address your letter to:

HMRC Self Assessment
HM Revenue and Customs
BX9 1AS

Your letter should include:

• Your full name
• Your National Insurance number
• Your Unique Taxpayer Reference (UTR)
• A clear statement that you are applying for a Making Tax Digital exemption on the grounds of digital exclusion
• Your specific grounds for the application
• Supporting evidence (see below)

What supporting evidence to include

Strong evidence significantly increases the chance of a successful application:

How long does HMRC take to respond?

HMRC aims to respond to exemption applications within 28 days. In practice, responses can take longer during busy periods. If you have not heard within six weeks, follow up with a phone call referencing your application.

HMRC recommends applying as early as possible — ideally several months before the April 2026 mandatory start date. If you apply in March 2026 and have not received a decision by April 2026, you may be left in an uncertain position. Apply now.

What happens while you wait for an exemption decision?

HMRC recommends that you prepare as if you will need to comply with Making Tax Digital while your exemption application is being considered. If it is refused and you have not prepared, you will immediately be behind on your obligations.

This is practical advice, not a formality. Consider the scenarios:

• Application granted: You can continue with paper records and traditional Self Assessment. Any preparatory software work is wasted, but there is no harm done.
• Application refused and you have prepared: You are already ready to comply from April 2026. You simply continue with the software you have set up.
• Application refused and you have not prepared: You are immediately in breach from April 2026 and must scramble to set up software and catch up with record-keeping retroactively. This is the worst outcome.

If you believe you have strong grounds for exemption, it is still sensible to set up MTD software as a precaution while waiting for your application to be decided. Most software is free at the basic level — there is no cost to having it ready just in case.

Mental health and Making Tax Digital exemptions

Mental health conditions — including anxiety, depression, and other conditions — can qualify as grounds for a Making Tax Digital exemption if they are severe enough that digital engagement is genuinely impractical, not merely stressful or challenging.

HMRC handles mental health exemption applications sensitively and does not require detailed disclosure of a condition beyond what is necessary to assess the application. However, the bar remains “not reasonably practicable” — the condition must be severe enough that it genuinely prevents digital record-keeping, not just makes it harder.

Conditions that may qualify

• Severe anxiety disorders where digital interaction causes significant distress that cannot be managed with appropriate support
• Severe depression affecting cognitive function to the point where sustained engagement with software tasks is genuinely impractical
• PTSD with specific triggers related to technology use
• Severe OCD where digital tax tasks trigger disproportionate compulsive responses
• Conditions causing extreme cognitive impairment (advanced dementia, for example)

What HMRC will expect

Applications on mental health grounds are stronger when they include:

• A letter from a GP, psychiatrist, or clinical psychologist confirming the diagnosis and explaining its impact on daily digital activities
• Evidence that support options (such as using an accountant or a family member to assist with digital tasks) have been considered and are not viable
• An explanation of why the specific demands of MTD — quarterly record-keeping and submission — are impractical given the condition

Note that having a mental health condition does not automatically mean you cannot use MTD software. Many people with anxiety, depression, or other conditions manage digital tasks routinely. HMRC will assess whether the specific impact of your condition makes MTD compliance genuinely impractical for you.

Support before applying

Before applying for an exemption on mental health grounds, consider whether the following might make MTD manageable:

• Using an accountant or bookkeeper to handle the digital submissions on your behalf (you would need to provide them with records, but this reduces your direct engagement with software)
• Using MTD software through a family member who is willing to manage the submissions with your input
• Contacting HMRC's vulnerable customer support team for guidance on accessible approaches

Physical disability and Making Tax Digital exemptions

Physical disabilities preventing use of digital devices may qualify for an MTD exemption, but HMRC will expect evidence that assistive technology — screen readers, voice control, alternative input devices — has been tried and is insufficient.

The UK has a strong framework of digital accessibility tools that make computers and tablets usable for people with a wide range of physical disabilities. HMRC's starting assumption is that these tools exist and should be tried before an exemption is considered.

Assistive technology HMRC expects to have been considered

• Screen readers: NVDA (free), JAWS (paid), VoiceOver (built into Apple devices). For visually impaired users.
• Voice control: Windows Speech Recognition, Dragon NaturallySpeaking, Apple Voice Control. For users with limited hand mobility.
• Switch access: Single-switch or multi-switch access devices for users with severe motor disabilities.
• Alternative keyboards and mice: Ergonomic keyboards, trackballs, eye-gaze devices for users who cannot use standard input devices.
• Tablet touchscreens: For users who find mouse-based computers difficult but can use a touchscreen with a stylus or adapted grip.

An exemption application on disability grounds is substantially stronger when it includes evidence from an occupational therapist confirming that assistive technology has been tried and assessed as insufficient for your specific combination of condition, devices, and the requirements of MTD software.

Getting an occupational therapy assessment

An occupational therapist (OT) assessment can document your functional abilities with digital technology. Your GP can refer you for an NHS OT assessment, or you can arrange a private assessment. An OT report that specifically addresses digital device use — and concludes that MTD compliance is not reasonably practicable — is the strongest evidence you can submit with a disability-based exemption application.

Making Tax Digital exemption for rural landlords with no internet

Landlords with genuinely no available internet connection — fixed or mobile — at their home address may qualify for a Making Tax Digital exemption on the ground of remoteness. The key is persistent unavailability, not just poor service quality.

The UK still has pockets of genuinely poor connectivity, particularly in remote rural and upland areas. However, the combination of expanded fixed broadband (including rural programmes), mobile network rollout, and satellite internet options (including Starlink) has significantly reduced the number of locations with no viable internet access at all.

What counts as “no internet access”?

HMRC's threshold is not “no reliable broadband.” It is that no internet connection of any kind is practically available. This means:

• No fixed broadband service available from any provider at your address
• No reliable mobile broadband (this includes checking multiple networks, not just your current provider)
• Satellite broadband either not available in your location or not reasonably affordable given your circumstances

Simply having slow speeds — even very slow speeds — is typically not sufficient. MTD quarterly submissions are small data transfers that even a very slow connection can handle. The ground is intended for genuine absence of any connection, not poor connection quality.

Evidence for a remote area exemption

The following evidence strengthens a remote area exemption application:

• Ofcom Connected Nations Checker: The Ofcom tool at checker.ofcom.org.uk shows predicted broadband and mobile coverage at your address. Download and include screenshots showing no available service.
• ISP correspondence: Contact major ISPs (BT Openreach, Virgin Media, Sky, etc.) to confirm no connection is available at your address. Their written responses confirming this are useful evidence.
• Mobile network coverage maps: Check all four major UK mobile networks (EE, O2, Vodafone, Three) for 4G coverage at your address. Download and include screenshots.
• Local authority evidence: Some local authorities have documented rural connectivity gaps. Contact your local council to ask if your area appears in any rural connectivity assessments.

Note on satellite broadband

Starlink and other satellite broadband services have extended coverage to many areas previously without fixed or mobile internet. HMRC may take the position that satellite broadband is available and therefore internet access is possible. Be prepared to explain why satellite broadband is not a practical solution for your situation if you are making a remote area application.

Religious exemptions from Making Tax Digital

Genuine, consistent religious or ethical objections to using electronic systems may qualify for a Making Tax Digital exemption. This is intended for communities where avoidance of electronic technology is a sincere and consistently applied principle, not a selective preference.

HMRC's guidance references “religious grounds” as a basis for digital exclusion. In practice, this is likely to apply to a small number of communities where the avoidance of electronic technology is a core, consistent religious principle — rather than individuals who happen to prefer traditional methods.

What HMRC is looking for

To succeed on religious grounds, the application needs to demonstrate:

• Consistency: The objection applies to all use of electronic devices, not just to HMRC software. If you use a mobile phone, online banking, email, or any other electronic service, a religious objection to MTD specifically will not be accepted.
• Community support: A statement or letter from a recognised religious leader, elder, or community confirming the principle and your adherence to it strengthens the application significantly.
• Sincerity: HMRC assesses whether the objection is a genuine, held belief, not a post-hoc rationalisation for avoiding a new compliance requirement.

Applications on religious grounds that involve selective technology avoidance — where the applicant uses technology generally but objects to MTD specifically — will not succeed. The principle must be comprehensively applied.

What if your Making Tax Digital exemption application is refused?

If HMRC refuses your exemption application, you have the right to request a review of the decision and then to appeal to an independent tribunal if you remain unsatisfied.

HMRC's refusal will be set out in writing, with reasons. The process for challenging a refusal follows HMRC's standard review and appeal process:

Stage 1: Request a statutory review

Within 30 days of receiving the refusal, you can request that a different HMRC officer reviews the decision. This is an internal HMRC review — it is free and does not require a tribunal. In your review request:

• Explain why you believe the original decision was wrong
• Submit any additional evidence that was not included in the original application
• Reference the specific grounds on which you believe you qualify

Stage 2: Appeal to the First-tier Tribunal

If the statutory review upholds the original refusal, you can appeal to the Tax and Chancery Chamber of the First-tier Tribunal. This is an independent body and does not involve HMRC staff as decision-makers. You must appeal within 30 days of the review decision.

For most landlords, the cost and complexity of a tribunal appeal is disproportionate to the stakes of an MTD exemption. If you reach this stage, consider whether obtaining professional advice from a tax adviser or solicitor is appropriate.

Seek professional advice

If you have strong grounds for an exemption but your application has been refused, a tax adviser or accountant who is familiar with HMRC's digital exclusion policy can help you present your case more effectively in a review or appeal. The Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) can help you find qualified advisers.

Agents filing on behalf of exempt clients

If you are granted a Making Tax Digital exemption, your accountant or tax agent can still file on your behalf using the traditional Self Assessment route. An exemption means you personally are not required to use MTD software — not that your agent cannot assist you digitally.

This is an important and often misunderstood point. An MTD exemption is personal. It means:

• You do not have to maintain digital records in MTD software
• You do not have to submit quarterly updates through MTD
• Your accountant, if you have one, can continue to file your return using the non-MTD Self Assessment route on your behalf

An exemption does not mean your accountant can somehow bypass MTD for their other clients, or that you are entirely free of tax obligations. It simply means the digital MTD route is not required for you specifically.

When an agent might file digitally on your behalf without exemption

If you do not hold an exemption, your accountant can be appointed as your agent and manage your MTD obligations for you. They would use agent-authorised MTD software to submit your quarterly updates and Final Declaration. This is not a workaround — it is the legitimate agent route and fully compliant with MTD. Your records still need to be kept digitally, but your agent can handle the MTD software on your behalf.

Many landlords who find MTD software daunting solve the problem by working more closely with their accountant rather than seeking an exemption. The accountant manages the digital side; the landlord provides the records (bank statements, receipts, etc.) as they always have.