MTD and Partnerships: What SA800 Filers Need to Know
If you are a member of a business partnership, partnerships are currently outside the scope of MTD for Income Tax. But the picture is not entirely simple -- individual partners may still have MTD obligations depending on their other income. This guide explains what changes, what stays the same, and how partnership income is handled under the new MTD framework.Are Partnerships Included in MTD?
No -- not yet. Partnerships are explicitly excluded from the current scope of MTD for Income Tax. This means:
- The partnership itself does not submit quarterly updates through MTD
- The SA800 partnership return is not part of the MTD framework
- Partnership profit shares are not qualifying income for the MTD threshold calculation
This applies to all partnership types: general partnerships, limited partnerships (LPs), and limited liability partnerships (LLPs). HMRC has not confirmed when or whether partnerships will be brought into MTD.
What Partnerships Still Need to Do
Partnerships continue under the existing Self Assessment rules:
- The SA800 (Partnership Tax Return) must be filed annually by 31 January
- Each partner receives a supplementary page showing their share of profits
- Each partner declares their partnership income on their individual return (or Final Declaration under MTD)
None of this changes under the current MTD framework.
Individual Partners May Still Have MTD Obligations
Although partnership income is excluded from MTD, individual partners may still need to join MTD if they have other qualifying income from:
- Gross sole trader (non-partnership) self-employment income
- Gross UK and overseas property rental income
The MTD qualifying income thresholds apply on a phased rollout:
- From 6 April 2026: mandatory if qualifying income exceeds £50,000
- From April 2027: mandatory if qualifying income exceeds £30,000
- From April 2028: mandatory if qualifying income exceeds £20,000
Example: You are a partner receiving £80,000 from the partnership, and you also have a buy-to-let generating £35,000 gross rental income.
- Partnership income: excluded from qualifying income
- Property income: £35,000 -- qualifying income
- Result: Above the £30,000 threshold -- mandated from April 2027; also above the £20,000 threshold -- mandatory from April 2028 (not mandated from April 2026, as it is below £50,000)
In this case, you submit quarterly MTD updates for your property business. Your partnership income continues through SA800 and your Final Declaration.
How Partnership Income Is Declared Under MTD
When individual partners are subject to MTD, partnership profit shares are declared in the Final Declaration -- not through quarterly updates. The Final Declaration includes:
- Your confirmed quarterly figures for any MTD-qualifying income (sole trader businesses, property)
- Your partnership income (from your SA800 supplementary pages)
- Any other income (employment, dividends, savings)
The partnership element arrives at year end, just as it does on a Self Assessment return today.
SA800 Filing: No Change
The SA800 partnership return is unaffected by MTD. The partnership still:
- Maintains its own records (no digital link requirement for the partnership entity under current rules)
- Files the SA800 annually by 31 January
- Provides supplementary pages to each partner
Taxd offers SA800 filing for partnerships, alongside individual partner returns where needed.
When Might Partnerships Be Brought Into MTD?
HMRC has signalled the scope of MTD may be extended in future. No timeline has been confirmed as of early 2026. Monitor HMRC's MTD announcements to plan ahead if and when the rules change.
Common Questions
I run a partnership and also have rental income above £50,000. What do I need to do? Your rental income requires quarterly MTD updates for your property business from April 2026. Your partnership income is declared through the SA800 and your Final Declaration. The two systems run in parallel.
Does my LLP need to use MTD? No. LLPs are included in the partnership exclusion under the current rules.
Can partnerships voluntarily sign up for MTD? Partnerships as entities cannot currently sign up -- the system is not designed to accept quarterly updates from partnerships.
How Taxd Supports Partnerships
Taxd offers accurate SA800 filing with automated profit splits and partner statement generation. For individual partners with MTD obligations from non-partnership income, Taxd handles both the quarterly MTD updates and the Final Declaration including the partnership share. Simple, accurate SA800 filing -- for every partner.