Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many appeals against decisions to refuse exemption from Making Tax Digital for Income Tax Self Assessment have been (a) submitted, (b) upheld and (c) rejected.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of applications for exemption from Making Tax Digital have (a) been granted, (b) been refused and (c) are pending decision.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the impact of grant-funded voluntary organisations on reducing unresolved tax disputes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The VCS Grant Funding programme complements the Extra Support services HMRC provides and extends the Department’s reach. Grant Funding enables organisations to deliver trusted support to vulnerable and extra support customers with complex or unresolved tax issues. This helps those customers engage with HMRC and understand their obligations. The VCS support contributes to positive outcomes, building confidence, helping resolution and bringing tax affairs up to date. In 2025/26 the Scheme supported 43,000 individual customers.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussion has she has had with NATO-Partner countries on membership of the proposed Defence, Security and Resilience Bank.
Answered by Lucy Rigby - Chief Secretary to the Treasury
The UK announced that it is exploring setting up the Multilateral Defence Mechanism with Finland, the Netherlands and other partners by 2027. This will be designed to improve value for money and increase standardisation in the defence sector through joint procurement. It will enhance collaboration among allies and improve interoperability. It will aim to increase the availability of munitions and other critical capabilities when we need them most and aim to support a more resilient and efficient defence industrial sector, underpinned by more certainty of orders from aggregated demand through joint procurement from its members.
The Chancellor regularly discusses with NATO allies the need to meet the challenge jointly of increasing expenditure on our defence and resilience.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the risk that people who should qualify for exemption will incur penalties under the Making Tax Digital regime; and what steps she is taking to mitigate that risk.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her Department has made of the number of people who meet the eligibility criteria for exemption from Making Tax Digital for Income Tax Self Assessment.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC is taking to ensure that digitally excluded people are aware of their right to apply for an exemption.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many HMRC staff are assigned to process Making Tax Digital exemption applications by (a) headcount and (b) full-time equivalent.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC will publish regular statistics on exemption applications, outcomes and processing times under Making Tax Digital.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of an increase in the SCAPE discount rate on police officers in the 1987 Police Pension Scheme.
Answered by Lucy Rigby - Chief Secretary to the Treasury
In line with the existing methodology, the Government announced on 19 May 2026 that the SCAPE discount rate is 2%+CPI.
HM Treasury is not the responsible authority for individual Public Service Pension Schemes. Regulation B7 of the Police Pension Scheme Regulations 1987 provides for commutation of pension to purchase lump sum and specifies that the rate is that set out by the Scheme Actuary. The factors were updated on 21 May 2026 to reflect the change to the SCAPE discount rate.