If a letting agent manages your property, you probably get one payment a month and a PDF statement that explains it. Making Tax Digital (MTD) for Income Tax wants something different: the full rent, and each cost on its own, each in the right category. This guide shows how to get from one to the other, with a worked example.
The short answer
Don't record the net amount the agent pays you. GOV.UK says that if you only know your income after expenses, you should:
- ask what the full amount was before expenses were taken off,
- create a digital record for the full amount of income, and
- create a digital record for your expenses.
Your agent statement usually has everything you need for steps 1 to 3. You just have to split it out.
What each record needs
Every digital record needs three things: the amount, the date (when the income was received or the expense was incurred) and the category. The records have to be kept in software. A spreadsheet counts, as long as it's digitally linked to the software that sends your updates (for example, bridging software reading linked cells).
You need the records for a quarter in place before you send that quarter's update. GOV.UK also asks you to keep records as close to the date of the transaction as possible, so doing each statement when it arrives is the easiest habit.
Worked example
Say this month's statement shows:
| Line on the statement | Amount |
|---|---|
| Rent received from tenant | £1,200.00 |
| Management fee (10% + VAT) | −£144.00 |
| Boiler repair (contractor invoice) | −£85.00 |
| Paid to you | £971.00 |
You'd record three items:
| Date | Description | HMRC category | Amount |
|---|---|---|---|
| 1 Oct | Rent, Flat 2 | Total rents from property | £1,200.00 |
| 1 Oct | Agent management fee | Legal, management and other professional fees | £144.00 |
| 3 Oct | Boiler repair | Property repairs and maintenance | £85.00 |
Then check it: £1,200 − £144 − £85 = £971, which is what arrived in your bank. If the lines don't add back to the payout, something is missing.
Which category does each line go in?
These are HMRC's UK property categories. They match the property pages of the Self Assessment return (SA105), which MTD uses too. Common agent-statement lines:
- Management fee or commission: legal, management and other professional fees. HMRC's notes list management fees paid to an agent for rent collection, advertising and administration here.
- Repairs and maintenance (a plumber, redecorating, fixing an appliance you supplied): property repairs and maintenance.
- Ground rent, service charge, landlord insurance, council tax or utilities you pay: rent, rates, insurance, ground rents and other costs.
- Cleaning or gardening provided to tenants: cost of services provided, including wages.
Two things to watch:
- Improvements aren't repairs. A repair restores something to its original condition. An improvement, such as a new extension, is a capital cost and can't be claimed against rental income.
- Some lines explain the payout without being rent or a running cost, such as a tenant's deposit passed on to you, or a float the agent holds back for future repairs. Note them so the statement still reconciles, and ask an accountant how to treat them if you're unsure.
If you're not sure where something goes, check with an accountant. Getting the category right matters more than getting it done fast.
Why reconcile every statement
The check above (gross rent minus every deduction equals the payout) catches most mistakes:
- a renewal, inventory or "admin" fee in small print
- two months' rent on one statement, or none on another
- a deposit or part-payment from the tenant mixed in
- a repairs float held back
Ten seconds with a calculator now saves untangling it at the end of the year.
What actually goes to HMRC each quarter
Less than you might think. Each quarterly update is a year-to-date total for each category. HMRC doesn't receive individual receipts or invoices. If you find a mistake, you correct your records, and the corrected totals go in your next update.
With standard update periods, the deadlines are:
| Period (year to date) | Deadline |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
If your accounting year runs 1 April to 31 March, you can choose calendar update periods in your software before your first update. The deadlines are the same.
Who needs to do this, and when
MTD for Income Tax depends on your qualifying income, which is your income from self-employment and property before expenses:
- over £50,000 in 2024–25: from 6 April 2026
- over £30,000 in 2025–26: from 6 April 2027
- over £20,000 in 2026–27: from 6 April 2028
For 2026–27, HMRC won't give penalty points for late quarterly updates. Points still apply to a late tax return.
FAQ
My agent only sends an annual statement. Is that enough? You need records for each quarter before each update, so ask your agent for monthly or quarterly itemised statements now.
Can I keep using a spreadsheet? Yes, if it's digitally linked to compatible software. Bridging software reads your spreadsheet and sends the totals. GOV.UK has a tool for finding software, and some free products exist for simple tax affairs.
I spotted a mistake in a statement I've already recorded. What now? Correct the record. Because each update is a year-to-date total, the corrected figure goes in your next update. GOV.UK also lets you resend the fourth update if you find an error.
Doing it faster
If you have several properties or a long statement, splitting each one by hand takes a while. statement-split reads an agent statement (PDF or photo), suggests a category for every line, checks that it adds back to what you were paid, and gives you a spreadsheet laid out for MTD bridging software. You review the figures, and nothing is sent to HMRC. Try one statement free, with no sign-up.
Sources (checked 17 October 2026)
- 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: Find out if and when you need to use Making Tax Digital for Income Tax
- GOV.UK: Work out your qualifying income for Making Tax Digital for Income Tax
- GOV.UK: Work out your rental income when you let property
- GOV.UK: UK property notes (SA105), 2026
- GOV.UK: Choose the right software for Making Tax Digital for Income Tax
This isn't tax advice. Check GOV.UK or an accountant for your situation.