Making Tax Digital (MTD) for Income Tax works person by person, not property by property. If you own a rental property with someone else, you each count only your own share of the rent. You each keep records of your own share, and anyone who's in MTD sends quarterly updates for their own property business.
That means one co-owner can be in MTD while the other isn't. And a single letting agent statement for the whole property has to be split before either of you records it.
Whose share is whose?
Married couples and civil partners who live together. GOV.UK says jointly owned property is usually taxed in equal shares, even if you own it unequally. If you really do own it in unequal shares, and the income is split the same way, you can both sign a declaration on Form 17 to be taxed on your actual shares. HMRC's manuals and the Form 17 page on GOV.UK set out the conditions:
- you both have to sign it, and you need evidence of the unequal ownership, such as a declaration or deed
- HMRC must receive it within 60 days of the date the last of you signs it, and there's no power to extend that
- it takes effect from the date the last of you signs. It can't be backdated
Everyone else (unmarried partners, siblings, friends). Your share of the profits or losses is usually your share of the property. GOV.UK says you can agree a different split. If you do, HMRC's manual says the share you're taxed on must be the share you actually agreed.
Owning a property jointly doesn't usually make you a partnership. HMRC's manual says joint letting doesn't, of itself, create one. If you are in a genuine partnership, different rules apply, and partnership profit shares don't count towards the MTD threshold. Ask an accountant if you're not sure which you are.
Does your share count towards the MTD threshold?
Yes, and only your share. Qualifying income is your income from self-employment and property before expenses. GOV.UK's example: two siblings own a property bringing in £50,000 and share it equally, with no other income of this kind. Each has qualifying income of £25,000.
Your share is added to any property you own alone and any self-employment income. GOV.UK says your share of a jointly owned property isn't a separate business. It's part of your one UK property business.
One wrinkle: if you're only told your share after expenses have been taken off, GOV.UK says that net figure is what HMRC assesses. For your records, though, GOV.UK says to ask for the full amount before expenses and record the income and expenses separately.
The thresholds are over £50,000 (measured in 2024 to 2025, MTD from 6 April 2026), over £30,000 (2025 to 2026, from 6 April 2027) and over £20,000 (2026 to 2027, from 6 April 2028). Our free MTD checker asks for your share rather than the property's total rent.
Worked example: one statement, two owners
Alex and Sam are married, live together and own a flat 50/50. It lets for £1,500 a month through an agent charging 10% plus VAT. For the three months 6 July to 5 October, the agent's statements show:
| Line on the statement | Amount |
|---|---|
| Rent received (1 Aug, 1 Sep, 1 Oct) | £4,500 |
| Management fees (10% + VAT) | −£540 |
| Repair: broken extractor fan | −£300 |
| Paid out | £3,660 |
Each of them records half:
| What | HMRC category | Alex | Sam |
|---|---|---|---|
| Rent | Total rents from property | £2,250 | £2,250 |
| Agent fees | Legal, management and other professional fees | £270 | £270 |
| Repair | Property repairs and maintenance | £150 | £150 |
Check: £2,250 − £270 − £150 = £1,830, which is half the £3,660 paid out.
Now the threshold. Across a year the flat brings in £18,000, so each has a £9,000 share. Sam also owns a house outright that lets for £24,000 a year. If those were Sam's 2025 to 2026 figures, Sam's qualifying income would be £33,000: over £30,000, so MTD from 6 April 2027. Alex, with £9,000 and no other self-employment or property income, is under every threshold so far.
So only Sam needs MTD from April 2027. Alex still pays tax on their share of the rent, but isn't brought into MTD by Sam's income.
If Alex and Sam weren't married and had agreed a 60/40 split, the rent would be recorded as £2,700 and £1,800, and the expenses split the same way.
Easier record-keeping for jointly let property
GOV.UK gives joint landlords some options that sole owners don't get. You only need records for your share, and you don't need to link your records to the other owner's. On top of that, you can do either or both of these:
- Keep less detailed records. One record for each income category per update period, and one for each expense category per tax year. GOV.UK's example: instead of three records of £1,000 rent, one record of £3,000 for the quarter.
- Leave joint expenses out of your quarterly updates. Report only your share of the income each quarter, then add the expenses after the tax year ends by resending your fourth quarterly update, before you submit your tax return.
The second option doesn't cover property you own alone. In Sam's case, the house's expenses still go in every update; only the flat's expenses could wait until the year end.
GOV.UK says the simpler-records option for UK property turnover under £90,000 also applies if you jointly let a property.
FAQ
I'm in MTD but my co-owner isn't. Does that pull them in? No. MTD depends on each person's own qualifying income, so your income doesn't count towards theirs.
Do our records have to match up? GOV.UK says you don't need to link your digital records to the other owner's. It still makes sense to work from the same agent statements, so your shares add back to the whole.
We're married and own the property 75/25. Can we just record 75/25? Not unless you've made a valid Form 17 declaration. Without one, the 50/50 rule applies. A Form 17 only covers income from the date you've both signed it, and only if HMRC gets it within 60 days of that date.
Splitting a joint statement
statement-split reads a letting agent statement (PDF or photo). An AI model labels each line, then fixed published rules suggest the HMRC category, and it checks the lines add back to the payout. It works on the whole statement, so you apply your share afterwards. You check every line. It isn't tax, accounting or legal advice, and it doesn't send anything to HMRC. Try one statement free.
Related guides: How to record letting agent statements for MTD · Gross or net rent for MTD?
Sources (checked 19 October 2026)
- GOV.UK: Work out your qualifying income for Making Tax Digital for Income Tax
- GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
- GOV.UK: Use Making Tax Digital for Income Tax: create digital records
- GOV.UK: Use Making Tax Digital for Income Tax: send quarterly updates
- GOV.UK: Making Tax Digital for Income Tax: quarterly update direction
- GOV.UK: Work out your rental income when you let property
- GOV.UK: Declare beneficial interests in joint property and income (Form 17)
- HMRC: PIM1035 Jointly owned property and partnerships
- HMRC: TSEM9842 Form 17 rule: introduction
- HMRC: TSEM9860 Form 17 rule: when a declaration takes effect
- HMRC: TSEM9862 Form 17 rule: strict time limit
This isn't tax advice. Check GOV.UK or an accountant for your situation.