Does Making Tax Digital apply to partnerships?

Not yet. As at 16 October 2026, GOV.UK says partnerships do not need to use Making Tax Digital, and no start date has been set. A partner's own sole-trade or rental income can still bring them in.

Making Tax Digital for Income Tax (MTD) means keeping digital records and sending HMRC a short update every quarter. It began on 6 April 2026 for sole traders and landlords with the highest incomes. Plenty of tradespeople work in a partnership instead, such as two brothers running a roofing firm or a husband and wife plumbing business. This page sets out what GOV.UK says about them, as checked on 16 October 2026.

What GOV.UK says about partnerships

GOV.UK lists partnerships under its automatic exemptions: "Partnerships do not currently need to use Making Tax Digital for Income Tax." It adds that HMRC will set out the timeline for when they need to use it in the future. Its main MTD guidance says the same: partnerships will need to use it in future, and the timeline will come at a later date.

So there is no date for partnerships yet. If you see one quoted elsewhere, check it against GOV.UK, which is where HMRC will publish the timeline.

The rules themselves are in the Income Tax (Digital Obligations) Regulations 2026. In those regulations, a "return" means a personal tax return.

Your partnership share and your own income

Being a partner does not take you out of MTD. It only takes your partnership share out of the test. Qualifying income is your self-employment and property income before expenses, and GOV.UK leaves the partnership share out of it.

One exception: personal self-employment or property income that the partnership tells you about, such as disguised investment management fees, does count. GOV.UK says you keep digital records and send quarterly updates for it.

The thresholds are over £50,000 on your 2024-25 return for a 6 April 2026 start, over £30,000 on your 2025-26 return for 6 April 2027, and over £20,000 on your 2026-27 return for 6 April 2028.

A worked example

Dan and his brother run a building firm as a partnership. Dan's profit share is £45,000. He also does small jobs at weekends as a sole trader, taking £12,000 before costs, and he rents out a flat for £9,600 a year.

Dan's qualifying income is £12,000 plus £9,600, which is £21,600. The £45,000 partnership share is left out. Because £21,600 is under £30,000, MTD does not start for Dan in April 2027. If his 2026-27 figures are similar, he is over £20,000 and starts on 6 April 2028.

His brother has only the partnership share. His qualifying income is nil, so he does not need MTD for now, though he still files his own tax return.

What this means for you

If your only business income is a partnership share, there is nothing to do for MTD today. Keep filing the partnership return and your personal tax return as you do now, and watch GOV.UK for the partnership timeline.

If you also have your own sole-trade work or rental income, add those up before expenses. Over the threshold, you sign up as an individual. You keep digital records and send quarterly updates for those sources only. GOV.UK says you do not add partnership income as a new source in your HMRC online account, but you still include it in your tax return, sent through your compatible software. Some software lets you report it during the year if you prefer.

Penalties work differently too. GOV.UK says the new points-based penalties do not apply to a partnership return sent by the nominated partner, so the current penalties still apply to it. Your personal return is different: from April 2027 the new penalties apply to everyone who submits a personal Self Assessment return.

Steps for partners

1. List every source of income you had in 2025-26: partnership share, any sole-trade work of your own, rent, and wages.
2. Add up only your own sole-trade turnover and your rent, before expenses. Leave out the partnership share and wages.
3. Compare the total with £30,000 for a 6 April 2027 start and £20,000 for 6 April 2028. The free MTD check does this with you.
4. If you are over, choose compatible software and sign up as an individual before your start date. Quarterly updates are then due by 7 August, 7 November, 7 February and 7 May.
5. Keep the partnership's records in order as usual, so you are ready when HMRC sets the partnership timeline.

There are guides for each trade in the trades section.