Do I Need Making Tax Digital for Landlords with Joint Property Income?

Tax Queen

Tax Expert @ Pie

4 min read

Do You Need Making Tax Digital with Joint Property Income?

You need Making Tax Digital for Income Tax if your share of the rent, plus any self-employment income, came to more than £50,000 before expenses in 2024/25. Your co-owner's share does not count towards your total.

With news this week about letting agents reporting landlord earnings to HMRC, now is a good time to check where you stand. Here is how the rules work for joint owners, in plain English.

How the Threshold Works for Joint Owners

Making Tax Digital (MTD) is HMRC's system where you keep digital records and send short updates every quarter. It became compulsory on 6 April 2026 for landlords and sole traders whose qualifying income was over £50,000 in 2024/25.

Qualifying income means gross income, so the total before any expenses are taken off. It is your self-employment income and your property income added together. Wages, pensions and dividends are not included.

If you own a property jointly, you only count your share of the gross rent. For example, if a flat brings in £40,000 a year and you own half, your share is £20,000.

Married couples and civil partners are usually taxed 50/50 on jointly owned property. If you genuinely own it in unequal shares, you can ask HMRC to tax you on your actual shares by sending a declaration known as Form 17.

The Threshold Is Falling

The limit drops to £30,000 from 6 April 2027, based on your 2025/26 income, and to £20,000 from 6 April 2028. Many joint landlords who are below the line today will be brought in over the next few years.

Our guide to Making Tax Digital for sole traders and landlords explains the wider scheme in more detail.

What You Need to Do Each Quarter

Once you are in MTD, you keep digital records of your share of income and expenses using HMRC-recognised software. A spreadsheet only counts if it is linked to HMRC through bridging software, which is a tool that sends the figures for you.

For the 2026/27 tax year, your quarterly updates are due by:

7 August 2026
7 November 2026
7 February 2027
7 May 2027

Updates are running totals for each category, not tax returns. If you make a mistake, you simply correct it in the next update.

Your final tax return for 2026/27 is due by 31 January 2028. HMRC also offers some extra flexibility for joint owners on how expenses are reported, so it is worth checking HMRC's latest guidance on jointly owned property.

Common Worries and Mistakes

In online landlord communities, the same concerns come up again and again. These are the ones we see most often.

Counting the whole rent. Some landlords add up the full rent from a shared property, when only their own share counts.
Using profit instead of gross income. The threshold is based on income before expenses, so a modest profit can still mean you are in.
Forgetting other income. A small side business plus a share of rent can tip you over the limit.
Assuming the co-owner handles it. Each owner keeps their own records and reports their own share separately.
Claiming mortgage interest as an expense. Landlords get a 20% tax credit for finance costs instead.
Worrying about penalty points. There are no penalty points for late quarterly updates in 2026/27, but you must still send them before your tax return. From 6 April 2027, each missed deadline earns one point, and 4 points means a £200 penalty.

Late tax returns and late payments are still penalised as normal. If you are new to Self Assessment, our guide on how to register for Self Assessment walks you through it.

What to Do Next

Work out your share of gross rent for 2024/25 and 2025/26.
Add any self-employment income to see if you are over the threshold.
Agree with your co-owner how shared income and costs will be split and recorded.
Start keeping digital records with HMRC-recognised software.
Put the quarterly deadlines in your calendar.

How Pie Tax Makes This Easy

Pie Tax is free, HMRC-recognised Making Tax Digital software built for sole traders and landlords. It automatically tracks your earnings, categorises expenses, and provides real-time tax estimates so you always know where you stand.

Before getting started, here is how the app simplifies setting up your rental income, managing quarterly MTD updates,and submitting your Self Assessment directly to HMRC.

How to Add Rental Property Income in Pie Tax App

Follow this step-by-step guide to set up your property profile, enter address and ownership details, and upload your financial documents or connect your bank in just a few quick taps.

Create Income Type

Tap Create income type under the Set up new income type section.

Select Property Option

Select Property from the income options and tap Next.

Choose Property Type

Select your rental property type (e.g., House or flat) and tap Next.

Provide Property Address

Enter the address details (Address line 1, City, and Postcode) and tap Next.

Specify Joint Ownership

Indicate whether the property is jointly owned (Yes or No) and tap Next.

Set Property Title

Enter a title for the property and tap Next.

Review Property Details

Review the property summary details and tap Next.

Select Income Addition Method

Select how you would like to add your income (e.g., Upload document) and tap Next.

Upload Financial Documents

Tap Upload file to upload your document (PDF, CSV, or IMAGE files allowed) and tap Next.

Simplify Your Property Tax Management Today

Setting up your rental income in Pie Tax takes just a few minutes, giving you total clarity over your property finances. By keeping your income records up to date throughout the year, you avoid last-minute deadline stress and ensure your quarterly MTD submissions to HMRC are completely hassle-free.

Get started for free today to track your rental income, claim all allowable expenses, and keep your tax return organised effortless.