When a rental property is owned jointly, Making Tax Digital for Income Tax (MTD) looks at each owner separately. Only your share of the rent counts towards the MTD threshold, and if you are over it you keep digital records of your share and send your own quarterly updates. HMRC also gives joint owners some simpler options that sole owners do not get.
Key takeaways
- Your share of the gross rent counts towards qualifying income, not the whole rent.
- One owner can be in MTD while the other is not.
- Each owner in MTD records their own share. Your records do not need to be linked to the other owner's.
- For jointly let property you can send income only in quarterly updates and add expenses after the tax year ends.
- Properties you own entirely still need income and expenses every quarter.
What counts as jointly owned property for MTD?
HMRC's guidance talks about "jointly owned" and "jointly let" property. In plain terms it means a property that you let together with at least one other person, such as a spouse, partner, sibling or friend, where each of you reports a share of the rent and costs on your own tax return.
This is different from a business partnership that files a partnership tax return. GOV.UK says a share of profit from a partnership does not count towards qualifying income and does not need digital records or quarterly updates. How the shares themselves are decided between owners, including married couples and civil partners, is a separate subject, so take advice if you are unsure of yours.
How your share affects the MTD threshold
Qualifying income is your total income from self-employment and property before expenses, taken from your Self Assessment tax return. MTD applies from 6 April 2026 if your qualifying income was over £50,000 in 2024/25, from 6 April 2027 if it was over £30,000 in 2025/26, and from 6 April 2028 if it is over £20,000 in 2026/27.
For joint property, GOV.UK is clear that your share of the property income is what counts. Its own example is a property generating £50,000 that two siblings own equally: each has qualifying income of £25,000 if they have no self-employment income. The full wording is on the GOV.UK page work out your qualifying income.
Two points catch people out. First, your share is added to any self-employment turnover you have, so a modest rental share can still push a sole trader over the line. Second, GOV.UK says that if you only receive notice of your share after expenses have been deducted, HMRC will assess that figure. Our guide to MTD qualifying income covers the wider rules.
Digital records: what each owner keeps
If you are in MTD, you only need to create digital records for your share of the income and expenses from jointly let properties. GOV.UK also confirms that you do not need to link your digital records to the records of the other landlord.
Your share of jointly let UK property is part of your single UK property business, alongside any UK properties you own alone, and your software adds them together into one quarterly update. HMRC then lets joint owners simplify things in two ways, set out in its guidance on how to create digital records:
- Less detailed records. You can create a single digital record for each category of property income you receive in an update period, and a single record for each category of property expense in a tax year. HMRC's example is one record of £3,000 for a quarter in place of three monthly records of £1,000.
- No joint expenses in quarterly updates. You can leave the expenses for jointly let properties out of the quarterly updates and add them after the tax year ends.
- Both. You can use the two options together.
Keep the underlying paperwork too. Our guide to MTD digital records explains what a digital record needs to show.
Quarterly updates for joint property
GOV.UK's page on how to send quarterly updates says that for jointly let properties you can choose to include either property income and expenses, or property income only. If you choose income only, you must report the expenses after the end of the tax year by resending your fourth quarterly update before you submit your tax return.
Updates are due by 7 August, 7 November, 7 February and 7 May. The next one is due by 7 November 2026. See MTD quarterly update deadlines for the full calendar.
Sole owner and joint owner compared
| Area | Property you own alone | Property you own jointly |
|---|---|---|
| Qualifying income | All of the gross rent | Your share of the gross rent |
| Digital records | All income and expenses | Your share only, with the option of less detailed records |
| Quarterly updates | Income and expenses every quarter | Income and expenses, or income only |
| Expenses left out in the year | Not an option | Added after the tax year, before the tax return |
Step by step: what each owner should do
- Confirm your share of the rent and costs, and make sure it matches what you have reported on past tax returns.
- Work out your own qualifying income. Add your share of gross rent from all properties to any self-employment turnover.
- Check your start date against the £50,000, £30,000 and £20,000 thresholds. Your co-owner does the same with their own figures.
- Choose compatible software and sign up if you are in MTD.
- Decide how to record the joint property: full detail, less detailed records, income only in the quarter, or both easements.
- Agree how information will reach you. If a letting agent or your co-owner handles the money, ask for the gross rent and the costs each quarter, not just a net figure.
- Send each quarterly update by the deadline.
- After 5 April, add any joint expenses you left out before you submit your tax return.
Worked example (illustrative)
"Priya and Daniel", an illustrative example, jointly own a flat that they let for £3,000 a month, or £36,000 a year, and they share the income and costs equally. Each has £18,000 of gross rent.
Priya is also a self-employed physiotherapist with turnover of £38,000. Her qualifying income for 2024/25 was £18,000 plus £38,000, which is £56,000, so she has been in MTD since 6 April 2026. Daniel is employed and has no other property or self-employment income. His qualifying income is £18,000, below all three thresholds, so on these figures he stays on ordinary Self Assessment.
Priya chooses both easements for the flat. For the update due by 7 November 2026, which covers 6 April to 5 October 2026, her software shows £9,000 of rent, built from two quarterly records of £4,500, with no flat expenses. Her self-employment income and expenses go in as normal. After 5 April 2027 she adds her half of the year's flat costs and resends her fourth quarterly update before submitting her 2026/27 tax return.
The people and figures are invented for illustration and are not real clients.
Common mistakes
- Counting the whole rent. Only your share counts towards the threshold.
- Assuming both owners are in or out together. Each owner is tested separately.
- Using the easements on a solely owned property. They apply to jointly let property only.
- Never adding the expenses back. If you send income only, the costs must go in before the tax return or you will overstate your profit.
- Working from net agent payments. Record gross rent and costs separately.
If you have several income streams, our MTD multiple income sources guide and our overview of MTD for landlords go further.
How we can help
We work out each owner's qualifying income, set up the digital records for your share and send the quarterly updates and year-end figures for you. MTD compliance starts from £49 per month on a fixed fee. See our MTD compliance service, view our pricing, or contact us before the 7 November 2026 update is due.
Frequently Asked Questions
Does the whole rent count towards my MTD threshold if I own a property jointly?
No. Only your share of the rent counts towards your qualifying income for Making Tax Digital for Income Tax. GOV.UK gives the example of a property generating £50,000 that is owned equally by two siblings, where each has qualifying income of £25,000. Any self-employment turnover you have is added to your share.
Do joint owners send one quarterly update between them?
No. Making Tax Digital for Income Tax applies to each person separately, based on their own Self Assessment tax return. An owner who is in MTD keeps digital records of their own share and sends their own quarterly updates through their own software. GOV.UK confirms you do not need to link your digital records to the other landlord's records.
Can I leave joint property expenses out of my quarterly updates?
Yes. GOV.UK says that for jointly let properties you can choose to include property income and expenses, or property income only. If you leave the expenses out, you must report them after the end of the tax year, by resending your fourth quarterly update before you submit your tax return.
My co-owner is not in MTD. Do I still have to use it?
Yes, if your own qualifying income is over the threshold. Each owner is tested on their own figures, so one owner can be required to use Making Tax Digital for Income Tax while the other carries on with an ordinary Self Assessment tax return. Your co-owner's position does not change what you must send.
What if I also own a rental property on my own?
The joint property easements do not cover it. GOV.UK says that if you also solely own other properties, you need to include both property income and expenses for those properties in your quarterly updates. Your share of the joint property and your solely owned UK properties still form one UK property business with one quarterly update.
Related reading
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Last reviewed: 11 October 2026.
This article is general information, not personal tax advice. Speak to a qualified accountant about your own circumstances before acting on it.