If you run a business in partnership with someone else, MTD applies differently to you than to a sole trader. Here's how.
Does the Partnership Threshold or My Share?
The MTD threshold is based on your individual total income — your share of the partnership profit, plus any other self-employment or rental income you have personally.
Who Files the Quarterly Updates?
Each partner files their own MTD quarterly updates individually, based on their share of the partnership income. The partnership itself also files a partnership return — this is separate.
What Records Does the Partnership Need?
- Partnership income and expenses — kept digitally in MTD software
- Each partner's profit share calculation
- The partnership agreement (HMRC may ask for this)