Who is exempt from MTD and who still needs to prepare?

With the first Making Tax Digital (MTD) for Income Tax deadline drawing ever nearer, there remains concern that many impacted will not be ready in time.

This fear has been heightened by news that, while some are exempt from MTD, the number that do not need to prepare is quite small.

If your clients have concerns about being MTD ready, it is best to figure out if they are truly exempt or just trying to delay the inevitable.

Who may be exempt from MTD for IT?

There is only one way an individual can be exempt and that is if they are digitally excluded.

Individuals are classed as digitally excluded if their age, health or disability stops them from using a device like a computer, phone or tablet to access accounting software to keep their financial records digitally and submit them to HMRC.

Digital exclusions can also apply if an individual is a practising member of a religious society whose beliefs do not align with the use of digital communications or keeping digital records.

Any claims made on the grounds of religious beliefs and societies will be investigated by HMRC, who will need to verify the information given before deciding if a person can be digitally excluded.

In addition to this, the digital exclusion can also apply if internet access at a person’s home or business isn’t possible and an alternative solution cannot be found.

It’s important to stress that HMRC’s criteria are extremely strict and will not accept any reasoning outside that.

What if my clients meet any of HMRC’s exemption criteria?

If your clients meet any of the points outlined in the exemption criteria, then they will need to apply to HMRC to be digitally exempt.

This is something that you can assist with and any digitally exempt client may appreciate this support.

Claims will be reviewed within 28 days and should they meet their criteria, then a digital exclusion will be applied.

In this case, your client will be permitted to continue submitting paper filings.

However, the number of people this is likely to impact is incredibly small and the main focus should be assisting clients with their MTD preparations.

How does Glasscubes help with MTD?

Glasscubes can support your clients with their personal tax obligations through our innovative, built-in MTD Assist.

Most MTD software pushes clients towards doing much of the work themselves and it is little wonder that many find the process daunting and overwhelming.

Our MTD-assist is designed to be simple and effective so that you can offer your clients a seamless experience, without them having to learn how to use complex software.

We are also keeping an eye on any potential changes that may come with filing guidelines to ensure that Glasscubes is always accurate and up-to-date.

Your clients might not be exempt from MTD, but Glasscubes provides an exemption from the stress that so many fear MTD will bring.

See how our technology supports your clients by booking a demo today.