There are a few exemptions outlined in HMRC’s draft VAT Notice:

You will not have to follow the MTD rules if HMRC are satisfied that:

• your business is run entirely by practicing members of a religious society whose beliefs are incompatible with the requirements of the regulations (e.g. those religious beliefs prevent them from using computers) or,

• it is not reasonably practicable for you to use digital tools to keep your business records or submit your returns, for reasons of age, disability, remoteness of location or for any other reason, or

• you are subject to an insolvency procedure.

In this case businesses should contact the VAT Helpline to discuss alternative arrangements.