01 Oct 2025
The Low Incomes Tax Reform Group (LITRG) is urging taxpayers who cannot manage their tax affairs digitally and are set to begin using Making Tax Digital for Income Tax (MTD for IT) to check whether they are able to claim an exemption.
From April 2026, the self-employed and landlords who declare more than £50,000 in gross income in their 2024/25 self assessment tax return will be required to follow the MTD rules. HMRC statistics show that 864,000 taxpayers are expected to be subject to MTD from April 2026.
HMRC recently published guidance for people who are digitally excluded in which it outlines how an MTD exemption can be obtained. Certain groups are already automatically exempt, for example those without a National Insurance number.
Taxpayers who are digitally excluded will be obligated to submit an exemption application via phone or post.
Sharron West, Technical Officer at the LITRG, said: 'If you are already exempt from MTD for VAT, HMRC say you should contact them when the exemption application process opens so they can check your circumstances and confirm if you'll also be exempt from MTD for IT.'