MTD for Landlords: Joint Property and Rental Income Explained

Making Tax Digital for Income Tax isn't only for the self-employed. Landlords with property income above the HMRC thresholds have to keep digital records and send quarterly updates too. If you own a rental property on your own, with a partner or with other people, this guide explains what changes.

Does MTD apply to you as a landlord?

The thresholds are based on your gross income, which means rent before any expenses. HMRC adds your gross property income to any gross self-employment income to see whether you're over the line. So a landlord with a side business can reach the threshold even if neither source would on its own.

Jointly owned property

If you own property with someone else, MTD is assessed on you as an individual, using your share of the rent. Each owner is responsible for their own digital records and their own quarterly updates.

• Your share of the gross rent counts towards your threshold, not the whole property's rent.
• Each joint owner reports their own share of income and expenses.
• One owner can be in MTD while another isn't, depending on their total income.
• Rental income from several jointly let properties can sit within the same property income source.

Rental statements from letting agents

If a letting agent manages your property, their monthly or quarterly statement is the backbone of your records. It shows the gross rent collected, their management fee and any repairs they arranged. AppyTax reads these statements for you, picking out the gross income, the fees and the expenses, so you don't copy the figures across by hand.

What you report each quarter

Each quarterly update summarises your property income and allowable expenses for the period. Typical items include:

• Rent received (or rent due, if you use accruals).
• Letting agent and management fees.
• Repairs and maintenance.
• Insurance, ground rent and service charges.
• Utilities and council tax you pay as the landlord.

Residential finance costs such as mortgage interest aren't deducted as an expense. They're dealt with as a tax reduction when you complete your final declaration at year-end.

Landlords with other income too

If you also work for yourself, property and self-employment income are both reported through MTD. With AppyTax they sit under one subscription, up to five income sources, so you don't need a separate account for each.

Getting started as a landlord

Send your rental statements, bank feeds and receipts as they arrive and AppyTax categorises them, so your property records are ready for each quarter. Subscribe and bring your landlord records up to date before your first update is due.