MTD ITSA - UK - 2026 rules - All guides
Making Tax Digital for Income Tax: Partnerships
If you run or are part of a partnership, the MTD ITSA position is different from sole traders and landlords. Here is exactly where partnerships stand and what to watch for.
Partnerships are currently excluded from MTD ITSA and cannot yet join, even voluntarily. They will not be brought in before April 2027, and no confirmed start date for partnerships has been set.
Does it apply to you?
Partnerships are not in MTD ITSA at the 2026 launch. Under current plans they are excluded, cannot sign up voluntarily, and will not be mandated before April 2027 at the earliest — with no firm date confirmed. This means a partnership itself does not yet file quarterly updates. However, a partner who also has their own separate self-employment or property income in their personal capacity is tested on that income under the normal rules, independently of the partnership. So the partnership is out for now, but your personal sole-trader or rental income may still bring you into MTD ITSA.
The thresholds and dates
What counts toward your threshold
Partnership profit share does not count toward your personal MTD ITSA qualifying income — it is specifically excluded, alongside PAYE wages, dividends, pensions and savings. What does count is any gross income you earn outside the partnership from your own self-employment or UK property. So a partner with a side consultancy turning over £52,000 in their own name would be in scope on that income, even while the partnership remains outside MTD ITSA.
What you will need to do
For the partnership itself, there is nothing to do for MTD ITSA yet beyond keeping good digital records in readiness — the government is expected to confirm a partnership timeline in future. If you have personal self-employment or property income above the threshold, you handle that under MTD ITSA separately. Keeping the partnership books in MTD-ready software now means no scramble when partnerships are eventually brought in.
Common questions
Does my partnership need to comply with MTD ITSA in 2026?
No. Partnerships are currently excluded from MTD ITSA, cannot join voluntarily, and will not be mandated before April 2027 — with no confirmed date yet.
Does my partnership profit share count toward my personal threshold?
No. Partnership profit share is excluded from your personal MTD ITSA qualifying income, the same as PAYE wages, dividends and pensions.
I am a partner but also freelance on the side — am I affected?
Possibly. Your separate self-employment or property income is tested under the normal rules. If that income exceeds the threshold, you are in scope on it, independently of the partnership.
Should my partnership do anything to prepare now?
Keeping digital records in MTD-compatible software is sensible readiness, so that when partnerships are eventually brought into MTD ITSA the transition is straightforward.
When will partnerships be brought into MTD ITSA?
No date has been confirmed. The government has indicated it will not be before April 2027, and further guidance is expected in due course.
Never miss a quarterly MTD deadline
AdminShield tracks your MTD ITSA quarterly updates and Final Declaration, reminds you before each falls due, and keeps your records organised - built for UK partnerships and the accountants who support them.
Start free - no card requiredThis guide is general information about Making Tax Digital for Income Tax based on current HMRC rules and is not tax advice. Thresholds and dates may change; check your own circumstances with HMRC or a qualified accountant.