MTD digital exclusion: preparing the information for an exemption enquiry
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If keeping digital records or using submission software is not reasonable in your circumstances, you may be able to apply for an MTD exemption. Start with the difficulty you face and HMRC's criteria, rather than trying to complete a software setup you cannot reasonably use.
Rules checked: 28 October 2026, UK. HMRC determines how the rules apply; this article does not decide whether an exemption will be granted.
Start with the current categories
HMRC: Exemptions from MTD for Income Tax distinguishes automatic exemptions from those requiring an application. It also distinguishes temporary and continuing arrangements. Read the category relevant to your circumstances rather than assuming every exemption follows the same process.
Do not carry an old answer forward without checking whether circumstances or the applicable year have changed.
Describe the practical difficulty
For a digital-exclusion enquiry, explain what prevents you from keeping digital records or making the required submissions. The guidance discusses circumstances involving age, health, disability, beliefs and internet access.
Be specific about the task you cannot reasonably perform and any alternatives that are or are not available. Keep the account factual. Do not send unnecessary sensitive documents or use an unofficial service that asks for your HMRC credentials.
Unfamiliarity with accounting software, extra time or cost, a small number of records, or previously filing on paper will not be accepted as the sole reason for an exemption. HMRC considers the person's circumstances individually, including where someone applies on their behalf.
Prepare questions for HMRC or your adviser
Ask whether an application is required, what information is needed and how you will receive the decision. Establish what you should do while it is being considered rather than assuming an enquiry suspends obligations.
If an adviser helps, agree who contacts HMRC and who keeps the correspondence. Use the official route described in the current guidance.
Keep the decision and review conditions
Save the outcome and note any period or circumstance it covers. Check what reporting obligations continue: exemption from MTD does not mean exemption from reporting income through Self Assessment.
Revisit the position when relevant circumstances change. The useful objective is a clear, documented answer about your obligations and the support available to meet them.
This is general information, not financial or tax advice. Rules change, so check GOV.UK or speak to a qualified adviser.
Related reading
Sources
Facts last checked: 18 October 2026.