Keeping up with Making Tax Digital (MTD) can feel overwhelming, especially for landlords managing multiple properties. From digital record-keeping to quarterly submissions, the rules can be confusing, but you don’t have to navigate them alone.
This MTD FAQs page answers the most common questions landlords have about MTD, breaking down everything from thresholds and exemptions to software options and joint ownership. Whether you’re just starting or preparing for the April 2026 deadline, make sure you have all the answers you need to stay compliant and confident.
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Landlord Making Tax Digital Frequently Asked Questions
Your MTD questions answered
Digital records and MTD basics
What do you mean by digital records (in the MTD context)?
Digital records are financial records kept in a digital format using MTD-compatible software (or a spreadsheet linked to bridging software) rather than on paper. For landlords, this includes recording income, expenses, property details, dates, and amounts, ready for submission to HMRC.
Will Excel work for MTD?
Only with bridging software. A spreadsheet on its own isn’t enough, because it can’t send your quarterly updates to HMRC. To use Excel, you’d need MTD-compatible bridging software to link it to HMRC. Dedicated MTD software like Landlord Studio is simpler, because it keeps your records and sends your updates in one place.
Do you have to show or upload bank statements for MTD?
No. You must keep digital records of income and expenses, including amount, date, and description. You don’t submit actual statements—just the information.
MTD thresholds, exemptions, and eligibility
Does the MTD threshold refer to profits after expenses or gross income?
The £50,000 threshold is based on gross income, not net profit. HMRC looks at total income from property or self-employment before deducting expenses.
What is the age for exemption from MTD?
There is no specific age cut-off exemption. HMRC may grant exemptions if you are unable to fulfil tech requirements due to age or disability, but you must file a request.
Does pension income count towards the MTD threshold?
No. Only self-employment and property income determine the threshold. Pension income, savings interest, dividends, and other non-trading income are excluded.
Will Capital Gains Tax (CGT) push me into the MTD bracket?
No. MTD thresholds are based on self-employment and rental income, not capital gains.
If I’m affected from April 2026, do I need to start 2026-27 accounts before submitting my 2025-26 return?
No. You submit your 2025-26 return as usual. MTD applies from April 2026 for the 2026-27 tax year onwards.
Joint ownership and shared properties
If each taxpayer’s share of joint property rent is below £50,000, but combined income is above, do we need to join MTD in April 2026?
No. The £50,000 threshold is per individual. Only if an individual’s share exceeds £50,000 do they need to join MTD.
I have both joint and solely owned property. Can we do MTD for only one partner?
Yes. MTD applies per individual. You can submit for your share while your partner remains outside MTD until required. Assign percentage ownership in Landlord Studio accordingly.
How does Landlord Studio handle joint ownership?
Landlord Studio allows multiple owners with percentage splits, generates MTD reports for each individually, and lets you submit for required owners while keeping others’ data intact.
Landlord Studio features and usage
How does Landlord Studio differ from other rental accounting software?
Landlord Studio is cloud-based, MTD-ready, mobile-friendly, and offers bank feeds, receipt scanning, cash-basis accounting, maintenance tracking, and optional Xero integration.
Can I record incidental or personal property expenses?
Yes. Use the organization section for income and expenses not tied to a property, and you can exclude personal properties when tracking expenses.
Do I need to use the bank link or Xero?
No. You can manually record income and expenses, import via CSV, or use built-in bank feeds. Xero is optional for integration but not required.
Does Landlord Studio allow storing digital receipts?
Yes. You can upload invoices, PDFs, and receipts for each expense, and re-download them anytime.
Can I set up recurring expenses?
Yes, recurring expenses can be set up in the bank feeds or directly in Landlord Studio.
Does Landlord Studio use cash or accrual accounting?
It uses cash basis accounting: income and expenses are recorded as they happen, with expenses marked as paid.
Can the system generate quarterly reports for an accountant?
Yes, time-based reports can be generated. For HMRC compliance, all digital transactions must remain in MTD-recognised software.
Is Landlord Studio suitable if my accountant uses Sage?
Yes. Sage integration is not required. You can still use Landlord Studio for property income.
Income types and accounting rules
How are Furnished Holiday Lets (FHLs) treated under MTD?
The FHL tax regime was abolished from 6 April 2025. Income from former FHLs is now treated like any other rental income, as part of your UK property business (or your overseas property business for lets in the EEA). It counts towards your MTD qualifying income in the same way as long-term rental income. The old FHL-only reliefs, such as capital allowances on new furniture and equipment, no longer apply.
How is foreign property income treated under MTD?
Foreign property income is included in MTD IT if you are a UK tax resident. Both UK and foreign income count toward qualifying income based on gross income. You can track foreign property in Landlord Studio now, and MTD submissions for foreign property are coming soon. For now, submissions cover UK property income only.
Can landlords with income over £150k use Landlord Studio?
Yes. Large portfolios can be managed, though some advanced features like invoice tracking may need workarounds.
Security and device requirements
What computer or device do I need for Landlord Studio?
Any device with an up-to-date browser (Chrome, Safari, etc.) or mobile/iPad. Landlord Studio is fully cloud-based.
How secure is the data?
GDPR-compliant. Data is stored securely on servers in the US and UK.
Download the MTD Checklist
Find out how ready you are for Making Tax Digital, download the free MTD prep checklist.
Final Words: MTD FAQs
Staying MTD-compliant doesn’t have to be complicated. Landlord Studio makes it simple by providing a fully MTD-compatible platform for tracking income, expenses, and property details.
With automated bank feeds, digital receipts, joint ownership management, and HMRC-ready reports, you can spend less time worrying about compliance and more time managing your properties.
