Exemptions from MTD for ITSA

A taxpayer who would otherwise be within MTD for IT’S A may be able to apply for an exemption if they are digitally excluded. A person is ‘digitally excluded’ if it is not reasonable for them to use MTD- compatible software to keep digital records and send quarterly updates or submit a tax return.

HMRC may accept that a person is digitally excluded if their age, a health condition or a disability stops them from using a computer or tablet to keep digital records and submit returns. A person may also be digitally excluded if they are a practising member of a religious society or order whose beliefs are incompatible with the use of digital communication or the keeping of digital records and the person does not use a computer, tablet or smartphone for business or personal use.

Where a person believes that they are digitally excluded they can apply to HMRC for an exemption by contacting HMRC by phone or by post.