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What is Digital exclusion (MTD exemption)?
Last verified 23 October 2026
Digital exclusion means it is not reasonable for you to use compatible software to keep digital records or send quarterly updates and your tax return. If HMRC accepts that you are digitally excluded, you are exempt from Making Tax Digital for Income Tax.
Why it matters to landlords
HMRC gives three examples: your age, a health condition or disability stops you using a computer, tablet or smartphone; you are a practising member of a religious society whose beliefs are incompatible with digital records and you do not use these devices at all; or you cannot get internet access at home or work because of your location and have no suitable alternative. HMRC will not accept unfamiliarity with software, past paper filing, or the time or cost of signing up as your only reason.
Unless you are automatically exempt, you apply by phoning or writing to HMRC, giving your National Insurance number, name, address and reasons. An agent or a family member you authorise can apply for you. HMRC aims to reply within 28 calendar days. If you are refused, you can appeal in writing within 30 days of the date on the letter. Exempt or not, you still report your income on a Self Assessment return.
Example
A landlord in their eighties who cannot use a computer because of a health condition asks their daughter to write to HMRC on their behalf. If the exemption is accepted, they keep filing a Self Assessment return in the usual way.
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Related terms
- MTD exemption
- MTD for Income Tax (MTD ITSA)
- Signing up for MTD for Income Tax
- Self Assessment
- National Insurance number (NINO)