Making Tax Digital for Income Tax is being rolled out, and HMRC has now published guidance explaining how individuals who cannot use digital systems can apply for an exemption. If someone qualifies as digitally excluded, they will not be required to keep digital records or use MTD-compatible software — but it’s essential to have HMRC’s formal agreement first.
What Does ‘Digitally Excluded’ Mean?
In simple terms, a person may be considered digitally excluded if they cannot use digital tools because of:
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Their age
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A disability
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Religious beliefs
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Where they live (for example, poor broadband connection)
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Or any other genuine reason that prevents digital use
However, HMRC has made it clear that some reasons will not be accepted. For example:
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Preferring paper returns
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Not being used to software
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Only having a few transactions each year
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The time or cost involved in switching to digital tools
The test is based on ability, not preference.
How to Apply for an Exemption
If you believe you (or someone you support) are digitally excluded, you can apply by contacting HMRC either by phone or letter.
Phone: 0300 200 3310
Write to:
Self Assessment
HM Revenue & Customs
BX9 1AS
United Kingdom
If someone else will contact HMRC on your behalf (such as a family member), you’ll need to authorise them first.
Your application should include:
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Name, address and National Insurance number
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How the tax return is currently submitted, and who helps with it
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Why digital systems cannot be used — with any supporting details
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Whether you have an accountant or representative
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Any additional needs you have so HMRC can support you appropriately
If writing, use the heading:
‘Making Tax Digital for Income Tax – digitally excluded application’
HMRC aims to respond within 28 days. If they decide you are not digitally excluded, you can appeal in writing using the address in their response.
Already Exempt from MTD for VAT?
If HMRC has already agreed digital exclusion for VAT, then the same exemption should apply for Income Tax — as long as your circumstances have not changed. You will simply need to provide:
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Your National Insurance number
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Your VAT registration number
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Confirmation of the reason for your VAT digital exemption
How We Can Help
If you or someone you care for may be affected, A&C Chartered Accountants can guide you through the process and help make sure everything is explained clearly to HMRC. Feel free to get in touch to talk through your situation in confidence.