Guidance

Applying for an exemption from Making Tax Digital for VAT

Check if you can apply for an exemption from Making Tax Digital for VAT and submitting your VAT Returns using software.

• From: HM Revenue & Customs
• Published: 7 January 2020
• Last updated: 29 October 2024 — See all updates

All VAT registered businesses should now be signed up for Making Tax Digital for VAT unless you’re exempt or have applied for exemption.

Check if you’re already exempt

You’re exempt from Making Tax Digital for VAT, and do not need to apply if:

• you or your business are subject to an insolvency procedure
• you’ve cancelled your VAT registration but still need to send your final return

Read more information on how you should send your VAT Returns when exempt from Making Tax Digital.

Check if you can apply for an exemption

You can apply if it’s not reasonable or practical for you to use computers, software or the internet to follow the rules for Making Tax Digital for VAT.

This could be because:

• of your age, health condition, disability or where you live
• you object to using computers on religious grounds
• you do not have access to the internet

There may be other reasons you cannot follow the rules for Making Tax Digital. HMRC will still consider your application.

Applying for an exemption

To apply, you must call or write to HMRC. You’ll need:

• your VAT registration number
• your business name and address
• details of how you currently send your return
• the reason you think you’re exempt from Making Tax Digital
• authorisation from the business (if you’re applying on someone’s behalf)

You should continue to send your returns as you usually do, until you receive a letter with HMRC’s decision. If we agree you’re exempt from Making Tax Digital, the letter will explain how you should send your VAT Returns.

Published 7 January 2020
Last updated 29 October 2024 + show all updates

1. 29 October 2024

   Sending a final VAT return after your VAT registration has been cancelled, has been added as an automatic exemption. A link has been added to guidance on how to send a VAT return when exempt from using Making Tax Digital for VAT compatible software.

2. 4 January 2023

   All VAT registered businesses should now be signed up for Making Tax Digital for VAT. HMRC will automatically sign up all remaining businesses. You no longer need to do it yourself.

3. 27 September 2022

   We have updated the guide to confirm that from 1 November 2022, you will not be able to use your existing VAT online account to send quarterly or monthly VAT returns. You’ll need to sign up to Making Tax Digital (MTD) and use compatible software to keep your VAT records and file your VAT returns.

4. 1 April 2022

   Information has been updated to reflect the fact that VAT registered businesses with taxable turnover below the registration threshold will also need to follow the Making Tax Digital rules from 1 April 2022.

5. 7 January 2020

   Added translation