The Income Tax (Digital Requirements) Regulations 2021

Prospective

Income exemptionU.K.

This section has no associated Explanatory Memorandum

21.—(1) The digital requirements do not apply to a person for a tax year to which the exemption in this regulation applies.

F1(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F2(3) The exemption applies—

(a)for the tax year 2026-27, if the amount of the person’s qualifying income for the tax year 2024-25 is not more than £50,000, and

(b)for subsequent tax years, if the amount of the person’s qualifying income for the most recent tax year in relation to which the filing deadline fell before the start of the tax year in question is not more than £30,000.]

(4) The filing deadline in relation to a tax year is the date on or before which the person is required to comply with a notice to file under section 8 of TMA 1970.

(5) A person’s qualifying income for a tax year is the sum of the amounts of income F3... which, for each business carried on by the person in that tax year, are included in that person’s return under section 8 of TMA 1970 for that tax year(1).

[F4(5A) But a person’s qualifying income for a tax year does not include any qualifying care receipts for that tax year.

(5B) For the purpose of paragraph (5), the amount of income for each business is—

(a)the amount included in the return before any deductions, or

(b)if a person is not required to include in the return the amount of income before any deductions, the amount included in the return after deductions.

(5C) For the purposes of determining a person’s qualifying income for a tax year, no account will be taken of any amendment to that person’s return for that year if—

(a)it would increase that person’s qualifying income for that year, and

(b)it is made after the start of the tax year to which the exemption under this regulation would apply.]

(6) If a person’s qualifying income for a tax year is in respect of a period of other than 12 months, the qualifying income must be adjusted proportionately on a time basis, or, if it appears that that method would work unreasonably or unjustly, on a just and reasonable basis.

(7) If a person is not carrying on a business in a tax year the qualifying income is treated as nil.

[F5(8) “Qualifying care receipts” has the same meaning as in Chapter 2 of Part 7 of ITTOIA  2005.]

Textual Amendments

Commencement Information

I1Reg. 21 in force at 6.4.2026 (as amended by S.I. 2024/167, reg. 3), see reg. 1

(1)

References to a return under section 8 of TMA 1970 are defined in subsection (7) of that section; that subsection was inserted by paragraphs 1 and 3 of Schedule 14 to the Finance (No. 2) Act 2017.