Tools / Who MTD does not apply to
Plenty of people assume they are in when they are not. Companies are outside it entirely, partnerships are deferred, and several groups are exempt automatically.
Making Tax Digital for Income Tax applies to individuals with property or self-employment income above the threshold. Limited companies are outside it entirely because they pay Corporation Tax rather than Income Tax. Partnerships are deferred to a date HMRC has not yet set. Trustees, personal representatives, foster carers, Lloyd's underwriters and people without a National Insurance number are exempt automatically.
| Who | Position |
|---|---|
| Limited companies | Not in MTD for Income Tax at all. They pay Corporation Tax, which is a separate regime. |
| Partnerships | Deferred. HMRC will bring them in at a later date that has not been announced. |
| Trustees | Exempt automatically. |
| Personal representatives | Exempt automatically, so administering an estate does not pull you in. |
| Foster carers | Exempt automatically. |
| Lloyd's underwriters | Exempt automatically. |
| No National Insurance number | Exempt automatically. |
| Below the threshold | Not mandated, though you can join voluntarily. |
A limited company that owns rental property reports through Corporation Tax, so MTD for Income Tax does not touch it. Note the split if you own property both personally and through a company: the company is outside, but your personal rental income is still tested in the normal way. Incorporating one property does not remove the obligation on the others.
Separately from the automatic exemptions, you can apply for exemption on the grounds that using digital tools is not reasonable or practical for you. HMRC will consider age, disability or health, lack of reliable internet access where you live, and religious beliefs incompatible with electronic communication. This is an application with a decision, not something you simply declare.
Overseas property still counts. Gross rental income from property abroad is part of your qualifying income alongside UK rents. Being outside the UK, or the property being outside it, does not by itself put you outside MTD.
Check whether MTD applies to you
No. Limited companies pay Corporation Tax, which is a separate regime, so Making Tax Digital for Income Tax does not apply to them. If you also hold property personally, that personal income is still tested normally.
Not yet. Partnerships are deferred and HMRC will bring them into MTD for Income Tax at a later date that has not been announced.
Trustees, personal representatives, foster carers, Lloyd's underwriters, people without a National Insurance number, and anyone with qualifying income below the threshold.
Yes, on digital exclusion grounds. HMRC considers age, disability or health, lack of reliable internet access, and religious beliefs incompatible with electronic communication. It is an application that HMRC decides, not a self-declaration.
Yes. Gross rental income from overseas property counts towards your qualifying income alongside UK rental income.
Last verified 16 September 2026. This is an estimate from a calculator, not tax advice, and GlideOps is not a firm of accountants. It uses 2026/27 rates for England and Northern Ireland and cannot see your full circumstances. Check anything that matters against HMRC guidance or an accountant before you file or commit money.