Key facts
- Exemptions are available for digital exclusion reasons (age, disability, religion, remoteness).
- You must apply to HMRC — exemption is not automatic.
- Exempt businesses file via the old online portal or on paper.
- Being uncomfortable with technology is not sufficient grounds for exemption.
Who Can Apply for Exemption?
You may be exempt from MTD for VAT if it’s not reasonably practicable for you to use digital tools because of:[1]
- Age
- Disability or health condition
- Religious beliefs that prevent use of electronic communications
- Location — no reliable internet access
- Any other reason that makes digital filing not reasonably practicable
What Doesn’t Qualify?
- Not wanting to use computers
- Preferring the old system
- Finding technology difficult (HMRC expects you to get help or use an agent)
- Cost of software (free options exist)
How to Apply
Contact HMRC’s VAT helpline (0300 200 3700) to request an exemption. You’ll need to explain:[1]
- Why you cannot use digital tools
- What steps you’ve taken to try to comply
- Whether an agent could file on your behalf
HMRC will consider your circumstances and let you know the outcome.
What Happens If You’re Exempt?
If HMRC grants an exemption:
- You can continue filing VAT Returns through the HMRC online portal
- You’re still required to keep adequate records and file returns on time
- HMRC may review your exemption periodically
Using an Agent Instead
If you struggle with digital tools, consider appointing an accountant or agent to file on your behalf. This is often simpler than applying for an exemption, and HMRC may suggest it.[2]
Tip: Even if you find technology challenging, MTD software like GoFile is designed to be as simple as possible. You may find it easier than expected.
Frequently Asked Questions
Who can get an exemption from Making Tax Digital for VAT?
Exemptions are available for digital exclusion reasons such as age, disability, health conditions, religious beliefs that prevent electronic communication, or lack of reliable internet access at your location.
Is an MTD VAT exemption automatic?
No. You must apply to HMRC by calling the VAT helpline on 0300 200 3700 and explain why digital filing is not reasonably practicable for you. HMRC will assess your circumstances.
Can I get an MTD exemption because I find technology difficult?
Not usually. Being uncomfortable with technology is not sufficient grounds. HMRC expects you to seek help, use simple software, or appoint an agent to file on your behalf.
How do I file VAT Returns if I am exempt from MTD?
If HMRC grants an exemption, you can continue filing through the old HMRC online portal or on paper. You must still keep adequate records and file on time.
Further Reading
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Sources
- Apply for an exemption from MTD for VAT — GOV.UK
- Making Tax Digital for VAT — GOV.UK
- MTD for VAT: detailed guidance — GOV.UK