Self Assessment Deadlines Loom- MTD exemptions for Digitally Excluded Taxpayers

Some clients may be exempt from MTD for ITSA because they are digitally excluded. This will be the case if HMRC accept that is not reasonable for them to use software that is compatible with MTD for ITSA to keep records or to submit returns to HMRC.

A client may be digitally excluded because:

• Their age, a health condition or a disability stops them from using a computer, smartphone or tablet to keep digital records or to submit returns to HMRC.
• They are a practising member of a religious society or oder whose beliefs are incompatible with using digital communications or keeping digital records and they do not use a computer, tablet or smartphone for business and personal use;
• They cannot get internet access at their home or business because of their location and cannot get access at a suitable alternative location.

Where an agent thinks that a client is digitally excluded and they will not meet the requirements on their behalf, they can apply to HMRC for an exemption for the client from MTD for ITSA. HMRC state that they will aim to process the application within 28 days of receiving it.