SALF940 | Self Assessment: the legal framework: Making Tax Digital: Overview and legislation: Partnerships in Making Tax Digital

The law sets out an interpretation of ‘relevant partnerships’, although MTD does not yet apply to partnerships.

HMRC will set out the future timeline for when partnerships need to use Making Tax Digital (MTD) for Income Tax.

This means relevant persons do not need to use MTD for Income Tax as a nominated partner, on behalf of a partnership, or an individual partner for their share of profit from a partnership.

If an individual is a self-employed partner in a partnership, they do not need to sign up unless they have other MTD qualifying income outside the partnership, such as:

• sole trader income

• UK for foreign property income

If an individual partner or nominated partner also has income from a sole trade self-employment or property income they may need to use MTD for Income Tax if their income is above the relevant threshold. If this is the case, the individual must not include either their partner or partnership business details in the sign-up service. Instead, this income will continue to be submitted as part of their tax return.

For additional guidance on partnerships see - EM7000 and the Partnership Manual.