HMRC allows exceptions for certain groups, particularly where using digital tools would be dififcult or impractical. Understanding whether you qualify for an exemption is essential, as MTD compliance will become mandatory for most landlords and sole traders over the coming years. 

Who is Exempt From MTD

The following individuals and entities may qualify for a full exemption from MTD for Income Tax:

• People who are digitally excluded due to age, disability, or living in a remote location with poor internet access
• Trustees managing trusts
• Executors or personal representatives dealing with estates
• Certain other categories

HMRC accesses digital exclusion on a case-by-case basis, so taxpayers must demonstrate why they cannot meet the digital requirements.

Partnerships and MTD

HMRC has confirmed that partnerships are not currently included in MTD for Income Tax. However, HMRC's long term plan is to bring partnerships into MTD in a later phase, so partners should expect digital reporting obligations to be introduced once the system is fully rolled out. 

Knowing whether you are exempt from MTD helps you:

• avoid unnecessary digital setup 
• prepare for future changes
• understand your reporting responsibilities

If you are unsure whether you qualify for an exemption, it is advisable to seek professional advice or ask HMRC directly.