MTD for Landlords Using a Letting Agent

If a letting agent handles your rent collection, maintenance calls, and tenant communication, it is easy to assume that tax admin is also off your plate. When Making Tax Digital comes up, the natural question is: do I need MTD if I use a letting agent, or does that obligation fall to them?

The direct answer is no, using a letting agent does not exempt you from Making Tax Digital for Income Tax. MTD is triggered by your gross rental income, not by who collects it. If your qualifying income is above the relevant threshold, you are in scope and the responsibility sits with you as the landlord and taxpayer.

This guide covers the thresholds, what your agent can and cannot do for MTD, how to handle their statements correctly in your digital records, and the practical steps to get ready.

Does MTD apply if I use a letting agent?

Yes, MTD for Income Tax applies to you as the landlord, regardless of whether a letting agent manages your property. The legal obligation to keep digital records and submit quarterly updates sits with you as the taxpayer, not with the agent.

A question that comes up regularly is: does MTD apply if letting agent manages property on your behalf? The answer is yes. The agent collecting rent, paying bills, or sending you monthly statements does not change whether you are in scope. MTD is triggered by your qualifying income level, full stop. Your agent's role in the tenancy is irrelevant to HMRC's assessment of whether you need to comply.

You remain liable for the accuracy of every submission and for meeting every deadline. If something is filed late or incorrectly, that is your responsibility, not your agent's. This is true whether your agent manages one property for you or ten.

Quick threshold check: am I in scope?

MTD for Income Tax is being phased in by qualifying income level. The thresholds are: £50,000 gross qualifying income, in scope from 6 April 2026; £30,000, in scope from 6 April 2027; and £20,000, planned from 6 April 2028 (government-announced, but not yet finalised in legislation).

Qualifying income is your gross property letting income plus any self-employment income, before expenses are deducted and before your agent's fees are removed. So if you are a self-employed plumber earning £35,000 from your trade and £20,000 in rental income, your combined qualifying income is £55,000. That puts you in scope from April 2026, even though neither income stream alone crosses the threshold. For full detail on what counts, see the qualifying income FAQ.

One important note: properties held through a limited company fall outside MTD ITSA, as companies report under Corporation Tax rather than Income Tax.

What can my letting agent actually do for MTD?

A letting agent is not automatically responsible for your MTD filing. There are three things worth understanding clearly.

First, an agent can only submit quarterly updates on your behalf if they offer it as a service and you formally authorise them through HMRC's supporting agent route. Most letting agents do not offer this. If you want someone else to file on your behalf, a qualified accountant or tax agent is the more typical route.

Second, the monthly or quarterly statements your agent sends you are an input to your digital records, not a filing in their own right. You still need MTD-compatible software, and you still need to submit quarterly updates yourself (or through an authorised agent).

Third, you remain liable for the accuracy of every submission and for meeting every deadline, regardless of what your letting agent does or does not do. Clarity on this point now saves problems later.

How to handle letting agent statements under MTD

Report gross rent, not the net figure

HMRC requires you to report your gross rental income, with your agent's commission and management fees recorded separately as an allowable expense. The problem is that agent statements typically show the net figure after fees and repair costs have already been deducted. That is not what HMRC expects to see in your digital records.

To use a straightforward example: if your agent collects £1,200 in rent and deducts a £120 management fee before passing the money on to you, your income figure is £1,200 and your expense figure is £120. You do not simply record £1,080 as income. Letting agent fees are a fully allowable expense, so recording them correctly means you get the deduction and your income figure is accurate.

The HMRC concession worth knowing

HMRC allows landlords to use the net figures from agent statements in their in-year quarterly updates, with an adjustment made at the Final Declaration to reflect the correct gross income and fully itemised expenses. This means you do not have to unpick every statement each quarter, but you do need to reconcile properly at year-end.

See the Landlord Studio guide to quarterly updates and the Final Declaration for how this works in practice.

Get the right statement frequency

An annual summary from your agent is not enough under MTD. Quarterly updates require your records to be current before each submission, so you need statements arriving regularly throughout the year. Ask your agent for monthly or quarterly income and expense statements so you can meet the deadlines.

Keep a digital copy of every statement as it arrives. Digital records must be in place before the relevant quarterly update is filed, so do not leave this until the end of the tax year.

What you need to do to get ready

MTD for landlords using letting agents comes down to four practical steps.

1. Check your gross qualifying income against the relevant threshold. Remember to add your property letting income and any self-employment income together, before deducting expenses or agent fees. Use the qualifying income FAQ if you are unsure what counts.
2. Contact your letting agent about statement frequency. Ask them to provide monthly or quarterly income and expense statements rather than a single annual summary.
3. Clarify who will file on your behalf. Ask your agent whether they offer an authorised MTD filing service. If not, speak to your accountant about acting as your tax agent, or plan to file yourself.
4. Choose HMRC-recognised MTD-compatible software and start keeping digital records. Your records need to be in place before your first quarterly period begins, not after.

Landlord Studio is listed on HMRC's MTD software register and the Pro plan free trial includes quarterly MTD updates and final submissions. Start your free trial to see how it works for your portfolio.

Frequently asked questions

Do I need MTD if I use a letting agent?

Yes. MTD for Income Tax is based on your gross rental income, not on who collects the rent. If your qualifying income exceeds the threshold, you are in scope and responsible for keeping digital records and submitting quarterly updates, even if an agent manages your property entirely.

Does Making Tax Digital apply if I use a letting agent?

Yes, it does. The legal obligation sits with you as the landlord and taxpayer, not with your agent. Your agent managing the property or collecting rent on your behalf does not change your MTD status.

Can my letting agent file my MTD returns for me?

Only if they offer it as a service and you formally authorise them through HMRC as a supporting agent. Most letting agents do not provide this service. A qualified accountant or tax agent is the more common route for authorised filing.

Do I report the rent before or after my agent's fees?

You report the gross rent as income and record the agent's management fee separately as an allowable expense. Do not report only the net figure after fees have been deducted, as this understates your income and misrepresents your expenses.

What income counts towards the MTD threshold?

Qualifying income is your gross property letting income plus any self-employment income, before expenses are deducted and before agent fees are removed. For full detail on what counts and what does not, see the Landlord Studio qualifying income FAQ.

Getting MTD-ready when you use a letting agent

Using a letting agent does not exempt you from Making Tax Digital. The responsibility to keep digital records and submit quarterly updates is yours as the landlord. That will not change regardless of how much your agent does on your behalf.

The practical upside is that once you have the right statement frequency from your agent and MTD-compatible software in place, the process is manageable. The groundwork is mostly a one-time setup. For advice specific to your circumstances, check with your accountant or HMRC directly, as tax rules can change.

Landlord Studio is HMRC-recognised MTD software built for independent landlords. UK landlords using Landlord Studio report average tax savings of £200 to £500 in missed deductions, so keeping accurate records pays off well beyond compliance. Start your free trial of the Pro plan to get quarterly MTD updates and final submissions included.