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 rather than on paper or basic spreadsheets. For landlords, this includes recording income, expenses, property details, dates, and amounts, ready for submission to HMRC.
Will Excel work for MTD?
No. Excel can only be used with additional 3rd-party bridging software. Simply keeping numbers in Excel is not sufficient. HMRC recommends fully MTD-compatible software like Landlord Studio for accuracy and simplicity.
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 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 combining 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?
FHLs are treated as UK property income and fall under MTD IT if income exceeds £50,000. Apply FHL-specific rules like capital allowances and holiday let relief.
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.
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.
