MTD for Joint Property Owners: A Complete Guide

Making Tax Digital (MTD) for Income Tax brings new rules for landlords starting in April 2026. But if you own property jointly—with a spouse, family member, or business partner—the rules can seem complicated.

Do you report together? Do you report separately? How do you calculate the threshold? Here is a clear guide to MTD for joint property owners.

Calculating the Threshold for Joint Owners

MTD becomes mandatory in April 2026 for landlords and sole traders with a gross income over £50,000.

For jointly owned property, you do not use the total rent of the property. You only count your specific share of the gross income.

Example: You and your spouse own a property that generates £60,000 a year in rent. You own it 50/50.

• Your share of the gross income is £30,000.
• Your spouse's share is £30,000.
• Because £30,000 is below the £50,000 threshold, neither of you has to join MTD in 2026 (unless you have other self-employed income that pushes you over the limit).

How to Report Joint Property Income

Under MTD, tax is still assessed on the individual, not the property. This means that if you and your co-owner are both mandated to join MTD, you must each keep digital records and submit your own quarterly updates.

You cannot submit a single joint quarterly update for the property.

The Joint Property Easement

HMRC recognizes that requiring multiple owners to keep separate, detailed digital records for the exact same property is an administrative nightmare.

To solve this, they introduced the Joint Property Easement.

This rule allows you to keep one central set of digital records for the property (for example, a single spreadsheet tracking all the rent and expenses).

When it is time to submit your quarterly updates, you do not need to split every single receipt in half. Instead, you can simply report your share of the total income and your share of the total expenses.

The Easiest Way to Comply

If you manage a jointly owned property, the easiest way to handle MTD is to keep using a shared spreadsheet.

1. Keep one spreadsheet: Track the total income and expenses for the property in one place.
2. Calculate your share: At the end of the quarter, calculate your percentage of the totals.
3. Use bridging software: Use a simple tool like Abridge to submit your share directly to HMRC. Your co-owner can do the same for their share.

You don't need to buy complex property management software or force your co-owner onto a new platform. A shared spreadsheet and simple bridging software keep you fully compliant with minimal stress.