MTD qualifying income: does General Partnership profit share count?

Giorgio

Hi everyone,

I’m trying to clarify my MTD for Income Tax obligations.
I’m a sole trader with a gross income below £50,000 for the 2024/25 tax year. I’m also an individual partner in a General Partnership, from which I received a profit share that would lead me above the £50,000 threshold in the same tax year.

I’ve checked the GOV.UK guidance (“Work out your qualifying income for Making Tax Digital for Income Tax”, last updated 29 January 2026), which states:
“Your share of profit from a partnership as an individual partner does not count towards your qualifying income.”

Based on this, my understanding is that my qualifying income for MTD purposes is only the sole trader income, which is below the £50,000 threshold for April 2026 mandate. This would mean I’m not required to use MTD until April 2027.

Can anyone confirm this interpretation is correct? Has anyone been in a similar situation and received any guidance from HMRC directly?

Thanks in advance.

Giorgio

Anyone who can help with this?
Thank you!

Katie

Hi Giorgio

Current guidance from HMRC is that you only need to join if you have “Qualifying Income” above £50,000.
This is classed as:

Sole trader businesses
Rental property (UK and overseas)

Income from a partnership is not counted toward the MTD for Income Tax threshold.

Please keep in mind this could change in future. Additionally, the threshold for qualifying income will decrease next year to £30,000.

Thanks,
Katie

Giorgio

Katie Thank you so much for clarifying!

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