HMRC have updated their guidance when to apply for an exemption if you need to use Making Tax Digital for Income Tax (MTD IT) from 06 April 2027.
HMRC have updated their guidance that covers who can apply for an MTD IT exemption, when and how to apply. Specially, the guidance has been updated about applications for an exemption not covered by the digital exemption and employers / agents should continue to use the existing ‘Find out if and when you need to use Making Tax Digital for Income Tax’ page and tool.
The ‘When to apply’ part of the above guidance has been updated to say claims can be submitted now for exemptions applicable to 2026/27 and 2027/28. For exemptions from 06 April 2028, these cannot be made until summer 2027.
The guidance is also worth reading for two situations:
1. If you have signed up but later discover you are exempt. In this situation, carry on using MTD IT until the exemption is granted; and
2. If you signed up voluntarily and later discover an exemption may apply
For Bookkeepers
ICB welcomes the updated guidance and is pleased to pass this onto members.