MTD is designed to be the new normal, but HMRC recognises that not everyone can realistically use software to keep records and file updates. If that applies to you or someone you care for, you can apply for an exemption from MTD on the grounds of digital exclusion.
Who this guide is for
- Anyone who genuinely cannot use a computer, tablet or smartphone.
- Anyone applying on behalf of a family member who can't.
- Anyone whose location, religious beliefs or health condition makes digital tax-keeping impractical.
It is not for people who find it inconvenient, expensive or unfamiliar. HMRC's bar for exemption is reasonably high, but thousands of people will legitimately qualify.
What counts as "digitally excluded"
GOV.UK's guidance says you can apply for exemption if it's not reasonable for you to use MTD-compatible software to keep digital records or submit them. Reasons HMRC will consider:
- Age, e.g. an elderly person who has never used a computer and has no realistic route to starting now.
- Disability, physical or mental health conditions that make using a computer, tablet or smartphone prohibitively difficult (or the frequency/duration of use that MTD requires unrealistic).
- Health, a serious ongoing health condition that has a similar effect.
- Location, e.g. your home or business premises has no reliable internet access and there's no reasonable local alternative.
- Religious belief, if your religious practices are incompatible with using digital technology.
What doesn't qualify
HMRC will not grant exemption just because:
- You're "not good with computers" or prefer paper.
- You've always done it on paper and don't want to change.
- You only have a few transactions.
- Software costs time or money to set up.
- Your handwriting is hard to read.
- You don't trust the cloud.
If you can reasonably use software, with help, if needed, you're expected to.
Does having an accountant affect things?
It can. HMRC will consider whether it's reasonable for the digital part to be done by your agent rather than you. If your accountant can realistically handle the MTD mechanics on your behalf, HMRC may decide that you're not digitally excluded.
This isn't a hard rule, HMRC looks at each application on its merits, but it's a factor. If you're applying for exemption because of a disability, don't let the presence of an accountant put you off applying: explain your circumstances properly.
How to apply
Applications can be made now for a 2026 start, and ahead of any future year. You apply to HMRC directly, either:
- By phone to the Self Assessment general enquiries helpline (0300 200 3310 at the time of writing; check GOV.UK for the latest number), or
- In writing to the address on the GOV.UK exemption application page.
A carer, friend or family member can apply on your behalf. You'll need to give permission for them to act for you.
What to put in the application
HMRC wants to understand your specific situation. A good application explains:
- Who you are (name, National Insurance number, UTR if you have one).
- Why you can't reasonably use digital software. Be specific. "I have severe arthritis in both hands and cannot use a keyboard or touch screen for extended periods" lands better than "I'm not good with computers".
- What you've tried or considered, e.g. asking family members to help, attempting to learn, looking at alternatives, and why those don't work.
- What your current process is for keeping records and filing tax returns.
If your situation is supported by a GP's note, a letter from a specialist, or a disability assessment, include copies. You're not required to, but it speeds things up.
How long it takes
HMRC aims to decide within 28 days of receiving your application, though it can take longer if they need more information. You'll usually get a letter telling you the decision.
While your application is being considered, you should continue to meet your tax obligations the usual way (i.e. keep doing Self Assessment as normal). If the exemption is granted, it typically covers you from the start of the relevant tax year.
If your application is refused
You can ask for a review or, if you still disagree, appeal to the tax tribunal. HMRC's letter will explain the options and timeframes. It's also reasonable to re-apply with more information if your circumstances change.
If you're exempt, what happens instead?
Exempt customers continue with Self Assessment the old way, you file an annual return by 31 January, without quarterly updates, and pay tax in the usual pattern. HMRC will tell you what to do; nothing falls through the cracks.
Applying for digital exclusion isn't unusual. Around a million people across all HMRC schemes are already exempt from various digital channels for perfectly ordinary reasons. If MTD would be a genuine hardship for you or someone you care for, there's a clear route. Use it.