Chapter 5

Making Tax Digital exemptions

We take a look at MTD exemptions and explore whether your business could be exempted.

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Can my business be exempted from MTD for VAT?

Close to a million businesses that were previously exempt from MTD - as their turnover was below £85,000 - must comply with the regulations from April 2022.

The only VAT registered businesses who can apply for an exemption from Making Tax Digital for VAT from April 2022 are those businesses who cannot reasonably or practically use computers, software or the internet. This may be because:

  • of your age;
  • of a disability;
  • you are running your business from a remote geographical location;
  • you object to using computers on religious grounds; or
  • of any other reason why it’s not reasonable or practical.

If you think you may fall into the digitally excluded category, you need to apply to HMRC directly. Each application is considered on a case-by-case basis.

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