Information block 4 of 20
Business Types
Sole traders, partners, and landlords can all be within MTD depending on income levels and how you earn money. Structure affects how you file, not whether digital records matter.
- Sole traders report their own trading profits
- Partnerships may require nominated partner filings
- UK property income has its own MTD rules when in scope
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.
Multiple trades or rental properties may mean separate records in your software. Employed income alone does not usually trigger MTD ITSA, but total qualifying income from self-employment and property determines if you must join.
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.
Common mistakes to avoid
- Omitting secondary self-employment income when assessing the £50k threshold
- Assuming a limited company’s rules apply to sole trader MTD
- Not agreeing record-keeping duties in a partnership
How SelfSubmit helps
See every profession with a tailored form on our business types page, or add each business separately in SelfSubmit with the right income and expense lines.