HM Revenue & Customs has published new guidance for who is exempt from having to comply with Making Tax Digital for income tax which requires certain sole traders and landlords to start submitting quarterly tax updates next year.
The changes mean that from 6 April 2026 sole traders and landlords with income over £50,000 must create, store and correct digital records of their self-employment and property income and expenses, as well as sending quarterly updates to HMRC .
The government department has this week published guidance for who doesn’t have to comply on the grounds of being digitally excluded. This means it’s not reasonable for you to use compatible software to keep digital records or submit them to HMRC. Examples include:
- your age, health condition or disability stops you from using a computer, tablet or smartphone to keep digital records or submit them to HMRC.
- you’re a practising member of a religious society or order whose beliefs are incompatible with using digital communications or keeping digital records, and you do not use a computer, tablet or smartphone for business or personal use.
- you cannot get internet access at your home or business because of your location, and cannot get access at a suitable alternative location.
To apply for an exemption yourself or on behalf of someone else, you need to either call or write to HMRC using the contact details here. If you write, use the title ‘Making Tax Digital for Income Tax — digitally excluded application’ on your letter.
HMRC aims to respond within 28 days of receiving your application. It says you should prepare to use Making Digital for income tax whilst you’re waiting for a response, in case your application is not accepted.
The full details for applying for exemption are here.
The Making Tax Digital for income tax rules will apply to sole traders with income over £30,000 from 6 April 2027 when declaring income for the 2025 to 2026 tax year.
For those with income over £20,000 for the 2026 to 2027 tax year, the government has set out plans to introduce legislation to lower the qualifying income threshold.