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Q: My clients operate a trading business through a partnership with an annual income of approximately £75,000. Will they be required to report their income through Making Tax Digital (MTD) starting from April 2026?

A: HMRC plans to implement Making Tax Digital (MTD) for partnerships, although a start date has not yet been announced. It is very unlikely that HMRC will introduce partnerships into MTD by April 2026; however, the exact date remains unknown. What we do know is that, when introduced, the MTD income tax obligations will apply to the partnership rather than to individual partners.

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These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.

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Markel Tax offers expert advice on UK tax and VAT via its helpline and provides monthly FAQs with questions and answers on common tax issues for businesses and practitioners.

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