Category 4
Business Types
Sole traders, partnerships, and landlords can all be in scope for MTD — rules depend on income and how you trade.
What it is
HMRC’s MTD rules focus on how much qualifying income you receive and whether you are self-employed or receive UK property income. Your legal structure (sole trader vs partnership) affects how returns are filed but digital record-keeping is required for those in scope.
Who it applies to
Self-employed sole traders, members of partnerships with trading income, and landlords receiving UK property income may need to follow MTD when above income thresholds.
What you need to do
- Confirm whether your total qualifying income exceeds HMRC thresholds.
- If in a partnership, agree who maintains digital records.
- Use software that supports your business type and number of income streams.
Key points
- Employed income alone does not usually trigger MTD ITSA — but may still appear on your final declaration.
- Multiple trades or properties may mean multiple records in one account.