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Self-assessment

Answer

HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.

Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.

Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.

Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.

In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.

HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.

The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.

Secondary information

Type

Written question

Reference

6542

Session

2026-27

Grouped for answer

Yes

Subjects

Appeals Electronic government Taxation Self-assessment

Contains statistics

Yes

Link

View this Written question on www.parliament.uk