Date posted: 2nd Feb 2026
Unincorporated landlords who had combined property and trading income in 2024/25 of £50,000 or more must comply with Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) from 6 April 2026.
This requires them to keep digital records and make quarterly returns and a final declaration to HMRC using MTD-compatible software.
Where landlords jointly own a property, there are some points to consider.
Working out qualifying income
A landlord is only within MTD from 6 April 2026 if their combined property and trading income (i.e. before the deduction of expenses) is £50,000 or more in 2024/25.
Where a landlord receives income from a jointly owned property, they only need take account of their share of the income from that property in working out their qualifying income. For example, if two brothers jointly owned a house in respect of which rental income of £20,000 was received in 2025/26 which was shared equally, each brother will need to take into account income of £10,000 in working out their qualifying income.
Reporting jointly owned property expenses
MTD for ITSA requires landlords within its scope to send quarterly updates of property income and expenses using compatible software.
In practice, where a landlord receives income from a jointly owned property, they may choose to keep quarterly updates relatively simple and then refine the detail at the end of the tax year. For example, some landlords choose to focus quarterly updates on income and the main categories of expenses, then finalise the exact split of jointly incurred expenses in their end‑of‑year declaration.
This approach still relies on good underlying records being kept throughout the year, but can make quarterly reporting more manageable for those with jointly owned properties.
There are more details available at https://www.gov.uk/government/collections/making-tax-digital-for-income-tax-for-businesses-step-by-step
As ever, if you have any queries, please contact us.
