Making Tax Digital: Who qualifies for digital exclusion and how to apply

As Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) begins its phased rollout from April 2026, HMRC recognises that not all taxpayers can reasonably comply with digital record-keeping and submission requirements.

For those affected, a digital exclusion exemption may be available.

What is digital exclusion?

Digital exclusion applies where it is not reasonably practicable for a taxpayer to use compatible software to keep digital records or submit them to HMRC. This includes: 

• Age, disability, or health conditions that prevent use of digital devices. 
• Lack of internet access at home, business premises, or any suitable location 
• Religious beliefs incompatible with electronic communications or record-keeping 

HMRC has clarified that exclusion will not be granted solely because a taxpayer prefers paper records, is unfamiliar with software, has minimal transactions, or finds digital compliance time-consuming or costly.

Does having an agent affect eligibility?

HMRC guidance suggests that taxpayers may not qualify for exclusion if they have an agent who can manage digital compliance on their behalf. However, this is assessed case-by-case. If the agent only assists with annual tax returns and the client cannot engage digitally due to age or health, an exemption may still be appropriate.

It is worth noting that HMRC does not currently treat cost as a valid reason for digital exclusion. While they may assume that an agent can manage digital compliance on a taxpayer’s behalf, this overlooks the financial burden such support can impose. For individuals who are genuinely unable to comply themselves, the ongoing cost of professional assistance may be a significant barrier.

Who can apply and how?

You can apply for digital exclusion yourself, a family member can do this on your behalf or we can apply as your agents.   

To apply you will be required to contact HMRC’s Self-Assessment general enquiries either by phone (0300 200 3310) or you can write to HMRC: 

Self Assessment 
HM Revenue and Customs 
BX9 1AS 
United Kingdom 

You will need to provide the following information: 

• Personal details (name, address, NI number) 
• Current filing method 
• Grounds for digital exclusion 
• Details of any agent support

HMRC aims to respond within 28 days. If you are required to comply by MTD from April 2026, applications should be submitted now. For later phases (April 2027 or 2028), you can apply in the preceding summer.

Important considerations

• VAT exemptions do not automatically carry over to MTD for ITSA,  a separate application is required.  
• Taxpayers must monitor their exemption status and inform HMRC of any changes in circumstances.  
• If exemption is not granted, agent support may help clients comply with MTD requirements. 
• If an application is refused, it can also be appealed. 

Digital exclusion is not automatic and must be supported by reasonable grounds. If you are unsure whether you qualify for digital exclusion or require our assistance applying for digital exclusion, please do not hesitate to get in touch with our team.