28/04/2026
Making Tax Digital (MTD) for Income Tax – Important HMRC Update.
Following the introduction of Making Tax Digital (MTD) for Income Tax, HMRC have released updated guidance clarifying who may be exempt from quarterly reporting in the first year.
✅ HMRC have confirmed that for the first year of MTD, taxpayers do NOT need to follow the quarterly reporting framework – regardless of their qualifying income – if their 2024/25 tax return includes any of the following:
A claim for averaging relief (farmers, market gardeners, or individuals creating literary or artistic works) using:
• SA103 (individuals)
• SA104 (partnerships)
A claim for qualifying care relief (foster carers or kinship carers)
SA107 supplementary page (income from trusts or estates)
SA109 supplementary page (residence and foreign income and gains)
• Where the individual is not UK resident
If one of the above applies to you, there is no need to contact or apply to HMRC.
Applying for an exemption
Taxpayers who still need to apply for an exemption – for example, those who are digitally excluded – must contact HMRC by phone or in writing. HMRC have advised they aim to respond within 28 days.
✨ This added clarity from HMRC is welcome as taxpayers adapt to the new MTD landscape. However, the first real test will come with the initial quarterly update submissions this summer, which many are now preparing for.
Need advice on how MTD affects you or your business?
Get in touch with our team – we’re here to help.
Totnes: 01803 862446
www.darnells.co.uk/contact/