If you and your partner own a rental property together, Making Tax Digital for Income Tax (MTD for IT) changes how each of you keeps records and reports to HMRC. The rules began for the first group of landlords on 6 April 2026, and a lot of co-owners are unsure who counts, whose income is measured, and how much extra admin it really means.
The good news: HMRC has built in an easement specifically for jointly let property, so you don't have to track every shared expense quarter by quarter. The catch: each owner is assessed on their own share, so one of you can be in MTD while the other isn't.
This guide is for couples, spouses, civil partners and any co-owners of UK rental property. We'll cover who gets pulled in, how your share is measured, the joint-owner easement in plain English, the quarterly deadlines, and a worked example so you can see how it lands.
Who has to use MTD for jointly owned property?
In short: each co-owner is assessed individually on their own share of the rental income, so it's possible for one owner to be mandated into MTD for Income Tax while the other is not.
MTD for Income Tax applies to individuals based on their qualifying income, not to the property itself. So a jointly owned flat doesn't "join MTD" as a unit. Instead, HMRC looks at each owner's personal qualifying income and decides, person by person, whether and when they need to follow the rules.
The thresholds and start dates are phased (gov.uk):
| Qualifying income over | You must use MTD for IT from | Based on the tax year |
|---|---|---|
| £50,000 | 6 April 2026 | 2024/25 |
| £30,000 | 6 April 2027 | 2025/26 |
| £20,000 | 6 April 2028 | 2026/27 |
HMRC checks the figure from your last submitted Self Assessment return, so the income that decides your 6 April 2026 start date is what you reported for 2024/25.
What is "qualifying income" for a co-owner?
Qualifying income is your total gross income from self-employment and property in a tax year, measured before you deduct any expenses. HMRC describes it as "the total income you get in a tax year from self-employment and property," assessed on "your gross income (income before you deduct expenses, also called your turnover)" (gov.uk).
Two points matter a lot for couples.
It's your share, not the whole property
For a jointly owned property, HMRC counts your share of the income towards your qualifying income. Their own example puts it plainly: a property generating £50,000 of income, owned in equal shares, gives each owner qualifying income of £25,000 from that property (gov.uk).
So a couple sharing a property 50/50 each look at their own half. If that's all the property income one of you has, and it's under the threshold for the current phase, that person isn't mandated yet, even though their partner might be.
It aggregates with self-employment, but not employment or pensions
Qualifying income adds together all your self-employment and property income, from every source. If you have a sole-trader sideline as well as your share of the rental, both count towards the same threshold.
What does not count: employment (PAYE) income, dividends, the State Pension and private or occupational pensions (gov.uk). A high salary won't push you into MTD. That income is still reported, but it goes in at the final stage, not in your quarterly updates.
How does the joint-owner easement work?
This is the part that saves co-owning landlords the most hassle. HMRC has confirmed that for jointly let property, you only ever record your share of the income and expenses, and you can choose to report income only in your quarterly updates, leaving the expenses until after the tax year ends (gov.uk).
In practice the easement has three parts.
1. You record only your share. HMRC is explicit: "You only need to create digital records that relate to your share of income and expenses from your jointly let properties" (gov.uk). You don't record the whole property and then carve out your bit.
2. You can keep less detailed records. Rather than a separate digital record for every receipt, you can summarise. HMRC's example: instead of three monthly records of £1,000 rent, you can "just create one digital record for the quarter, showing £3,000" (gov.uk).
3. You can leave expenses out until finalisation. For jointly let property, your quarterly update can include either income and expenses, or income only (gov.uk). If you take the income-only route, you add the expenses after the tax year ends, by resending your fourth quarterly update before you submit your tax return (gov.uk).
That last point is the heart of the easement. Many couples don't reconcile shared property costs until the year is done anyway, so reporting gross rent each quarter and slotting in expenses at the end fits how people actually run a joint let.
Can couples share one digital record?
You each have to maintain digital records for your own share, but you don't both have to log the same transaction twice in real time. Because you only record your share, and you can summarise it, a couple can work from one shared bookkeeping setup and each pull their half into their own MTD-compatible software. What you cannot do is manually retype or copy and paste figures between programs once they're in your digital records. HMRC requires digital links, so you "must not" use "cut and paste" or "copy and paste" to move records between software (gov.uk).
If you keep your shared figures in a spreadsheet, that's still allowed, but you'll need bridging software to send the data to HMRC, and the connection between spreadsheet and software must be a digital link (for example, linked cells or an API), not a manual rekey.
How are quarterly updates handled for a joint let?
Each owner sends their own quarterly updates for their UK property business. A quarterly update is not a mini tax return. It's a running, cumulative summary.
HMRC confirms each update "will cover from the start of the tax year to the end of the update period, not just the previous three months" (gov.uk). So each submission is a year-to-date total that supersedes the last, not four separate filings to reconcile.
All your UK rental properties are treated as one UK property business, so you don't file a separate update per property. HMRC: "If you have one or more properties in the UK, they are legally treated as one 'UK property business'" (gov.uk). Foreign property is a separate business with its own updates, including your share of any jointly let foreign property.
The standard quarterly deadlines
For the standard quarterly periods, the submission deadlines are (gov.uk):
| Quarterly period covered | Submit by |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May (the following tax year) |
Each owner files on this calendar for their own share. If you've used the income-only easement, your fourth update (due 7 May) is where you can add the year's expenses, or you can resend it with expenses before you finalise.
What replaces the Self Assessment return?
After the tax year ends you complete a final declaration, which takes the place of the old Self Assessment return. This is where the rest of your tax picture comes in.
At this stage you add the income MTD ignores, such as employment (PAYE) income and pensions, claim your reliefs and allowances, and make any final adjustments. HMRC says you "add other income sources into your tax return" and "need to add this information before you submit your tax return" (gov.uk). The deadline is unchanged: you "must submit your tax return by 31 January following the end of the relevant tax year" (gov.uk). Your balancing payment is still due by 31 January too.
So the rhythm for a mandated co-owner is: four cumulative quarterly updates of your share of the rent, then one final declaration by 31 January that pulls everything together.
Illustrative example: a couple who own one rental flat
Illustrative example. Priya and Tom own one UK rental flat together in equal 50/50 shares. The flat brings in £40,000 of gross rent in the year. Priya also runs a small self-employed consultancy with £35,000 of turnover. Tom is employed on a £60,000 salary and has no other self-employment.
Working out each person's qualifying income:
| Owner | Share of rent (50%) | Other qualifying income | Qualifying income |
|---|---|---|---|
| Priya | £20,000 | £35,000 self-employment | £55,000 |
| Tom | £20,000 | £0 (salary doesn't count) | £20,000 |
Priya's qualifying income is £20,000 + £35,000 = £55,000, which is over the £50,000 first-phase threshold. Based on that 2024/25 figure she would need to use MTD for IT from 6 April 2026.
Tom's qualifying income is just his £20,000 share of the rent. His £60,000 salary is employment income and does not count towards qualifying income. He is below the £50,000 and £30,000 thresholds, so he isn't mandated in the first or second phase. He would come in from 6 April 2028, when the £20,000 tier starts, if his position is unchanged (subject to HMRC confirming the rules in force at that time).
Same flat, same couple, two different outcomes. That's the practical effect of measuring each owner's share separately.
Because Priya is in MTD, she'd keep digital records of her £20,000 half, send cumulative quarterly updates of that rent (plus her consultancy), and use the easement to report rent income each quarter and add her share of the flat's expenses at finalisation. Tom carries on with normal Self Assessment until his phase begins.
If you want a refresher on how to set or evidence the underlying ownership split between spouses, see our separate guide to Form 17 and splitting rental income. This MTD guide assumes your beneficial-interest split is already settled.
What about penalties under MTD for Income Tax?
Late quarterly updates fall under a points-based late submission system. You get a penalty point each time you miss a submission deadline, and once you reach the points threshold (four points for quarterly filers) you're charged a £200 penalty, with a further £200 each time you miss a deadline after that (gov.uk).
Late payment of tax is handled separately, charged by how many days the payment is overdue rather than by points (gov.uk). The practical takeaway for couples: each mandated owner has their own filing obligations and their own points record, so you can't pool deadlines between you.
Frequently asked questions
Do both of us have to join MTD if we own a rental together?
Not necessarily. MTD for Income Tax is assessed per person on each owner's share of the gross rent (plus any self-employment), so one of you can be mandated while the other stays on normal Self Assessment until their own qualifying income crosses a threshold.
Is qualifying income based on the whole rent or just my share?
Just your share. HMRC counts your share of the property income towards your qualifying income. For a 50/50 owned property earning £50,000, each owner's qualifying income from it is £25,000.
Can we share one set of records for the joint property?
You can work from a shared bookkeeping setup, but each owner must keep digital records of their own share and submit their own updates. You only record your share, and you can summarise it, but you must use digital links rather than manually copying figures between programs.
Do we have to report shared expenses every quarter?
No. For jointly let property you can choose to report income only in your quarterly updates and add the expenses after the tax year ends, by resending your fourth quarterly update before you submit your tax return.
Does my salary or pension count towards the MTD threshold?
No. Employment (PAYE) income, pensions and dividends don't count towards qualifying income. Only self-employment and property income do. Your other income is still reported, but at the final declaration stage, not in quarterly updates.
What replaces my Self Assessment tax return?
A final declaration. After the tax year you confirm your property and self-employment figures, add other income such as employment and pensions, claim reliefs, and submit by 31 January following the end of the tax year, the same deadline as now.
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Key takeaways
- MTD for Income Tax is assessed per owner, on each person's share of gross rent plus any self-employment income.
- Phased start dates: over £50,000 from 6 April 2026, over £30,000 from 6 April 2027, over £20,000 from 6 April 2028.
- The joint-owner easement lets you record only your share, keep summarised records, and report income only each quarter, adding expenses at finalisation.
- Quarterly updates are cumulative year-to-date totals (deadlines 7 Aug, 7 Nov, 7 Feb, 7 May), not four separate returns.
- A final declaration by 31 January replaces the Self Assessment return and is where reliefs and non-qualifying income go.
Getting jointly owned property ready for MTD is mostly about getting the records and software right once, then letting the easement do the heavy lifting. If you'd like a hand, our team works with landlords on exactly this, and our Self Assessment service covers the move to digital quarterly reporting and your final declaration. Book a call with a Zmartly accountant and we'll map out who's mandated, when, and what software fits your set-up.
