Looking ahead, HMRC has opened the MTD exemption window for taxpayers who would otherwise have to join from next April.
Author:
Luke Parker
Unless qualifying for an MTD exemption, sole traders and landlords with qualifying income over £50,000 should have already submitted their first quarterly update for 2026/27. However, of the 864,000 taxpayers required to register for MTD, only 570,000 have done so, with just 436,000 successfully filing so far:
Taxpayers signed into MTD by HMRC will receive a letter or digital message depending on contact preferences. They will be advised about the next steps, such as obtaining and using MTD-compatible software.
Sole traders and landlords with income between £30,000 and £50,000 for 2025/26 will join MTD from 6 April 2027, unless they qualify as digitally excluded, with HMRC recently opening up applications for an exemption. Taxpayers might qualify for an exemption if the following applies:
The fact that additional costs will be incurred, or that extra time will be required for MTD, is not a valid reason for HMRC to grant an MTD exemption.
HMRC guidance on applying for an exemption from MTD can be found here.
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