MTD IT for partnerships ― three points to consider

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

Making Tax Digital for Income Tax (MTD IT) quarterly reporting and basis period reform are the biggest changes to administration of income tax in over 25 years. What does this mean for advisers and their clients?

The date at which partnerships are due to enter MTD IT has yet to be confirmed. On 19 December 2022, the Treasury Secretary announced a change to the timetable. This was confirmed in an HMRC press release, saying that the government remains committed to introducing MTD for ITSA to partnerships, but that the previously announced date of 2025 would no longer apply.

Looking forward to this future development, this guidance note looks at some key choices, challenges and opportunities for partnerships:

•
partnership and partners are different: and it matters
•
tax bills need managing in the light of basis period reform
•
quarterly reporting and finalising annual returns: there’s a lot to think about

For more details on MTD for IT and basis period reform see the Making Tax Digital for income

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MTD IT for partnerships ― three points to consider