The HMRC guidance on Making Tax Digital (MTD) for Income Tax has been updated to clarify the exemption criteria for not being physically or mentally capable of providing financial information to HMRC, for not having a National Insurance number and for non-resident taxpayers using the SA109 supplementary page when filing their tax returns.

It now also mentions the 2025-26 self assessment tax return, partnerships and the supplementary pages used to claim averaging relief as well as permanent exemptions for Lloyd’s members.

The section on automatic exemptions for the first year of MTD for Income Tax clearly sets out the various categories, although it is important to note these are only a one-year exemption. These same taxpayers will have to file under MTD from the 2027-28 tax year onwards, when the threshold drops to £30,000 upwards.