Expansion of exemption application
April 1, 2026
Digital exclusion (application required)
The test mirrors the MTD-VAT exemption. Acceptable grounds (HMRC):
- Age, health condition or disability preventing use of computer/tablet/smartphone;
- Location — no available broadband (not "haven't bought broadband");
- Religion — genuine religious objection to electronic communications.
NOT acceptable (HMRC explicit):
- Unfamiliarity with accounting software;
- Small number of transactions;
- Cost of software;
- Preference for paper returns;
- Having an agent who can file digitally (HMRC's policy paper: "HMRC expects MTD compliance through that representative").
Process (per HMRC guidance):
- Apply before your MTD start date — for April 2026 mandated taxpayers, applications are open now and urgent;
- For 2027 and 2028 cohorts, apply during the preceding summer;
- By phone (Self Assessment helpline) or in writing — use the subject lines: "Making Tax Digital for Income Tax — digitally excluded application" or "Making Tax Digital for Income Tax — exemption application";
- Information required: name, NINO, UTR, current filing method, reason and supporting evidence, agent details if applicable;
- An existing MTD-VAT digital-exclusion exemption is not automatic for ITSA — must contact HMRC to confirm circumstances still apply;
- HMRC target response time: 28 days;
- If refused, 30 days to appeal from the date on the decision letter (or by 30 April if the letter is received before 1 April);
- While awaiting decision or appeal, you must still comply with MTD if otherwise mandated. As of mid-March 2026, HMRC had received 2,200 exemption requests (ACCA).
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