Q: Does MTD for Income Tax apply to partnerships?

A: No.
Income arising from a partnership is currently out of scope for Making Tax Digital for Income Tax (MTD ITSA).

MTD ITSA applies to:

• self-employed individuals
• and landlords

It does not currently apply to:

• general partnerships
• LLPs
• or partners whose income arises solely from a partnership

This remains the case regardless of the level of profit or how that profit is split between partners.

What if each partner’s share of profit is over £50,000?

That does not bring the partners into MTD.

The MTD thresholds apply to:

• individual self-employment income, and
• property income,

not to partnership profit allocations.

Will partnerships ever be included?

Possibly — but not yet, and no date has been confirmed.

If and when HMRC bring partnerships into scope, I will advise clients well in advance. There is nothing to register for or change at present.