Where partnerships stand
A partnership itself is not in scope for Making Tax Digital for Income Tax (MTD for Income Tax) yet. No date has been published for bringing partnerships into the system.
The guidance checked for this page gives no start date for partnerships. A partnership does not sign up, send quarterly updates or file under MTD for Income Tax as a partnership at the moment.
A partner's share is not counted towards the threshold
The MTD threshold is based on qualifying income. That is the total income from self-employment and property before expenses, taken from the tax return submitted in the previous tax year.
A partnership share as an individual partner is not counted towards the threshold. Earning a share from a partnership does not, by itself, bring you into MTD for Income Tax.
- Employment income through PAYE
- A partnership share as an individual partner
- Dividends
- State and private pensions
- Qualifying care relief
- Basis period reform transition profits
- One-off transactions in UK land in a single tax year
If you have self-employment income or property income of your own, add those together before testing the threshold.
Thresholds and start dates
The threshold is tested as more than the figure. Exactly 50,000 pounds, 30,000 pounds or 20,000 pounds is not over it.
| Tax year tested | Qualifying income over | MTD for Income Tax starts |
|---|---|---|
| 2024-25 | 50,000 pounds | 6 April 2026 |
| 2025-26 | 30,000 pounds | 6 April 2027 |
| 2026-27 | 20,000 pounds | 6 April 2028 |
Qualifying income of 20,000 pounds or less is an automatic permanent exemption.
If you are a partner with other income
You may be a partner and also have sole trader income or property income. That income is added together and tested against the threshold.
If you are over the threshold and not exempt, you must use MTD for Income Tax for the income sources that are in scope. You sign up for each income source if you have more than one.
To sign up, you must be registered for Self Assessment and have submitted a tax return in the last 2 years.
From September 2026 HMRC signs up anyone who needs it for 2026-27 and has not signed themselves up. It happens in stages, using only the information HMRC already holds.
If HMRC signs you up, check the confirmation in HMRC online services or by post.
What a partner can do in the meantime
- Keep business records for Self Assessment.
- Check whether your own self-employment or property income is over the threshold for the relevant tax year.
- If you need to use MTD for Income Tax, sign up for each in-scope income source.
- If HMRC signs you up, check the confirmation in HMRC online services or by post.
- A partnership share can be kept digitally but does not have to be.
If you use MTD for Income Tax for other income, you must keep digital records and send quarterly updates. An all-in-one product can also submit the tax return.
Software for the income that is in scope
For MTD for Income Tax, compatible software must create and store digital records, work with your chosen accounting period and send the quarterly updates. An all-in-one product also submits the tax return.
HMRC does not provide software and does not approve, endorse or recommend any product.
TradeKit keeps records, sends quarterly updates and files the tax return, with CIS and VAT in one app.