My wife and I are Private Landlords. Should I set up one Partnership account or split between two Landlord accounts with MTD in mind to manage our joint properties? I already run two partnership VAT accounts for commercial lettings with different partnerships so am familiar with Quickfile.
Hello @robin_ives
Under HMRC’s current rules, partnerships are out of scope for MTD ITSA. There is no requirement to submit partnership income or partner/partnership details quarterly under MTD.
The correct reporting process is:
• The partnership files a single SA800, showing the full income, expenses, and the allocation of profit between the partners.
• Each partner reports only their allocated share of the partnership profit on their SA104, as part of their own SA100.
• If a partner is mandated into MTD ITSA, they only submit quarterly updates for their non-partnership income. The partnership profit is included at the year-end via Self Assessment, outside MTD.
There is no duplication of partnership bookkeeping and no requirement to split partnership transactions between partners for MTD purposes.
The partnership maintains a single QuickFile account to record all partnership income and expenses and to support the SA800 filing. Partners do not maintain separate QuickFile accounts for the same partnership activity.
The profit allocation between partners is calculated and reported on the SA800, and those allocated figures are then carried through to each partner’s SA104 for inclusion in their individual Self Assessment returns.
Thank you for your clear and concise answer. I intend to continue using an accountant for my/our end of year returns, would you suggest sticking to the Landlord’s Quickfile account for ease of record keeping?
Hello @robin_ives
The QuickFile support team are not registered accountants.
It may be worth asking your accountant what they think is best.
I will leave this thread open for now as there are some accountants on the forum who may comment.
Understood, that’s OK, hence my questions. I was hoping to find a Landlords accountancy package that allowed a partnership registration.
MTD is proving complicated…even HMRC give different answers, I’ve been on this for months.
Hello @robin_ives
I was hoping to find a Landlords accountancy package that allowed a partnership registration.
As I said under HMRC’s current rules, partnerships are out of scope for MTD ITSA. There is no requirement to submit partnership income or partner/partnership details quarterly under MTD.
If they do bring it in scope we would probably design a workflow for it.