MTD Query Hub

Partnership income is not included as part of the qualifying income.

There will be penalties for late submission of a quarterly update-these are however points-based and no financial penalty is triggered until 4 points have been reached. The government published information yesterday stating that there will be no penalties for late quarterly updates in 26/27, which is currently the case if you jon our 25/26 testing phase.

They are separate tax payers so will submit separate returns of their share of the property if they meet the threshold.

That is correct. You will submit the 25/26 return through the legacy agent account as you do now.

You should still submit the fourth update by 7th May, however, if you need to adjust this you can do so and re-submit any time prior to sending in the end of year return. It\'s important to note that the information on the quarterlies will help HMRC to ensure any income HMRC pre-populate for your end of year return are accurate.

We don\'t know at the moment whether the soft landing will apply for mandated customers from April 2027, and you should check for updates on gov.uk for any information relating to penalties in subsequent mandating years. The main focus is on the requirement for keeping digital records and submitting a summary of these quarterly.

They are well on the way but will need to start keeping digital records if they don\'t already and it may be that the income they use for the quarterly updates will be the same as that for vat.